What happens when a successor trustee resigns?
When a Trustee resigns, they must still act in the best interests of the Trust and the Trust beneficiaries. That means the Trust assets must be managed prudently while a new Trustee is selected. Further, the Trustee is required to provide an accounting to the Trust beneficiaries upon resignation.
Can a trustee step down?
California Probate Code §15640 only allows a trustee to resign as trustee using specific methods, so in some situations, offering a resignation letter will not be enough. If you wish to resign as the trustee of a trust, you should consult with an experienced trust attorney to ensure your resignation is effective.
When can a successor trustee take over?
Who decides who the successor trustee is? Initially, the creator of the trust. Where there is a shared spousal trust with co-trustees, and one spouse dies, the surviving spouse usually becomes sole trustee. The successor trustee usually only takes over after both spouses have passed or become incapacitated.
Can a successor trustee appoint another successor trustee?
If no one you named in the trust document can serve, the last trustee to serve has the power to appoint, in writing, another successor trustee.
How does a trustee retire?
A trustee will usually retire voluntarily under the statutory powers contained in the Trustee Act 1925. However, it is possible that the retirement may come about because: all the beneficiaries (being of full age and capacity) require it, by the exercise of an express power contained in the trust deed; or.
Does a trustee need to retire by deed?
39 a trustee can retire voluntarily (if two people remain after his retirement) but must do so by Deed which is signed by all the relevant persons – i.e. the person who has power to appoint trustees and the continuing trustees as well as the retiring trustee.
How do I retire as a trustee?
Under the provisions of the Trustee Act 1925 a trustee can retire from his office if (a) there will be at least two trustees remaining (one of whom may be his or her replacement) or a trust corporation, and (b) the other trustees, and anyone nominated by the trust deed to appoint trustees (an appointor), consent to the …