What Is a “Successor Trustee” in North Palm Beach?

If you’re committed to getting the most out of your estate plan in North Palm Beach, in-depth online research only makes sense. While carrying out this research, you might have come across the term “successor trustee.” What exactly is a successor trustee, and what role might this individual play in your estate plan? You can ask these questions during your first consultation with a North Palm Beach estate planning attorney.

A Successor Trustee “Inherits” the Duties of the Initial Trustee

As you probably already know, you’ll need to select a trustee when you create a trust in Florida. This is true for all types of trusts, from revocable life trusts to irrevocable trusts and everything in between. The trustee plays an important role in the estate planning process by overseeing trust assets and ensuring the best interests of the beneficiaries. Aside from an individual,  you might also select a company to oversee the trust assets. This is called a “corporate trustee.”

But what happens if the trustee you select dies or becomes incapacitated? What happens if the company tasked with managing the trust assets goes bankrupt or is dissolved by its shareholders? What if a trustee resigns after deciding they no longer want to fulfil their duties? What if your chosen trustee refuses to fulfil their role immediately after your passing? In this situation, a successor trustee “inherits” the duties of the initial trustee, helping protect your beneficiaries and the trust assets.

When you create a trust, you should choose both a “first-choice” trustee and a successor trustee. You can even name more than one successor. However, you should outline a clear “line of succession” if naming three or more successors. For example, make it very clear that one of your successor trustees is first in line to succeed the first. Then, make it clear that another trustee is third in line to succeed the successor trustee, and so on.

Naming more than one successor trustee to “share” the duties is generally a bad idea, as this could lead to conflicts and indecision between the trustees.

What Happens if I Don’t Name a Successor Trustee? 

If you don’t name a successor trustee and your first-choice successor dies or resigns, the court will have to appoint a trustee. This may be someone you would never have chosen yourself. This individual may be completely unfamiliar with your beneficiaries, your finances, and your unique circumstances.

Can an Estate Planning Attorney in North Palm Beach Help Me?

If you want to learn more about successor trustees, consider expanding on this conversation with an experienced estate planning attorney in North Palm Beach. These legal professionals can not only explain this concept in more detail, but they can also help you choose a successor trustee who makes the most sense based on your unique circumstances. Continue this conversation with Kitroser Lewis & Mighdoll today.

Sources: 

floridabar.org/the-florida-bar-journal/can-selection-of-a-trustee-be-a-material-purpose-under-f-s-%C2%A7736-07062d/

floridabar.org/the-florida-bar-journal/trust-me-practical-advice-for-drafting-florida-trusts/