Can a sibling be a trustee?

Can a sibling be a trustee?

Of course, professional trustees charge fees, and many banks and trust companies have a minimum trust balance requirement in order to serve as trustee. The other choice is to name a family member to serve as trustee, such as a sibling of the trust beneficiary or some other trusted family member.

Can a family member be an independent trustee?

Traditionally they are lawyers or accountants, or companies set up by lawyers and accountants, but equally they can be a family member or any other person not entitled to receive a benefit from the Trust.

Do co trustees have to act jointly?

California trust law requires that co-trustees act unanimously. If the trust instrument provides that co-trustees do not have to act unanimously, the instrument controls. The trust instrument may allocate certain powers to specific trustees. The allocation of powers among co-trustees does not have to be equal.

Can executors and trustees be the same person?

Yes, it is possible for the same person to be appointed as both Executor and Trustee. In fact, this is not uncommon. There is no legal reason why the same person cannot be appointed in two or more of these roles, but it’s important that they are clear on the specific duties and responsibilities of each.

Who can be a trustee of a family trust?

A trustee could be one person, a group of people or a company set up specifically to act as trustee. A trustee of a family trust does not have to be a professional, it can be a family member or another trusted individual such as a close relative.

Who can be a independent trustee?

While the independent trustee does not have to be a professional person, he/she must:

  • be completely independent of the normal contracting parties of the trust, and not a family relation of an existing trustee, proposed trustee, beneficiary or founder in a wide sense.
  • not be a beneficiary of the trust.

Can a co-trustee act alone?

The answer to this is No unless the Trust document states otherwise. In the case where the Trust does not explicitly state, the trustee and the co-trustee should make all decisions unanimously to push the trust administration process forward.

Can a co-trustee be removed?

Petitioning Court for Removal A petition for removal of a trustee can be filed by either a co-trustee or a beneficiary. Court removal of a trustee is a complex process, often involving conducting depositions, issuing subpoenas for records, and asking the court to order the trustee to provide an accounting.

Can a trustee be a beneficiary of a family trust?

Can a Trustee Also Be a Beneficiary of a Trust? Yes, a trustee can be one of the beneficiaries of a trust. For example, an individual could set up a trust, appoint themselves as trustee and distribute income to their family. However, a trustee cannot be the sole beneficiary of a trust.

What happens when one co-trustee dies?

When the trustee dies, someone else must take over since a trust can’t operate without a trustee. If there was a co-trustee , like with a joint trust, the surviving co-trustee typically becomes the sole trustee (unless the grantor specified different terms in the trust agreement).

More often than not, the executors and the trustees are the same people but their role changes from executor to trustee. In that case there may be no need for a separate stage to transfer the property to the trustees.

What happens if a trustee spend the money?

Misappropriation of Trust Funds by Trustee in California. Basically, If the trustee misappropriated trust funds, used the trust funds for their own benefit and without the approval of the beneficiaries. The best approach is to take court action and submit a petition to remove the trustee.

A petition for removal of a trustee can be filed by either a co-trustee or a beneficiary. This process can be further complicated if beneficiaries are also designated as trustees. The petition may also seek financial damages from the trustee.

The trustee has broad powers to conduct the trust, and manage its assets. In a family trust, the trustees are usually Mum and Dad (or a company of which Mum and Dad are the shareholders and directors). Their children and any other dependants are usually listed as beneficiaries.

Can a joint Appointor be appointed to a trust?

Further, the ability to have joint appointors can be a very important provision in many circumstances. At the very least the trust deed for a family trust should provide a succession provision stating that in the event that the appointor dies, his personal representatives or executors will step into his or her shoes as appointor of the trust.

What’s the problem with appointing siblings as trustees?

No one wants to have to write to their brother or sister to ask for money. This changes a brother-sister relationship to parent-child relationship. And the one that gets put in charge of making the decisions always loses. Whether you know it or not, trust administration is not easy work.

Who is the Appointor of a family trust?

As the trustee of the trust is the one that determines to whom and in what proportion the capital and income of the trust will be distributed, the role of appointor is one of the most, if not the most important role in a family trust, as they are the person who ultimately controls the assets of the trust.

When does a family member serve as trustee?

When a Family Member Serves as Trustee – “Fair and Honest Is Not Enough”. Parents typically face two choices when selecting a trustee to manage a special needs trust for their child when the parents have died. One choice is a professional trustee–a bank or trust company or an individual who is in the business of serving as a trustee.