Legal Question in Wills and Trusts in California

Re: trustee successor

A successor trustee is not a beneficiary (unless you also name her as a beneficiary). A trustee may be entitled to some fees for their performance, typically about 1% of value of the trust assets per year, unless Trust says that named trustee shall perform without compensation.

Re: trustee successor

a trustee is not a beneficiary unless the trust instrument so provides. a trustee is entitled to "reasonable compensation" unless the trust instrument provides otherwise.

however, keep in mind that a revocable trust is not subject to court supervision (unless an interested party petitions the probate court). this means that a trustee can take improper actions with regard to the trust, which are often not known to the beneficiaries until after assets have been taken and dissipated. if the trustee has no significant assets, any judgment obtained against the trustee may not be of any real value.

this is the reason that it is critical that only trustworthy individuals are named as successor trustees. in the alternative a financial institution can be named as successor trustee. this may cost more or be less convenient for the beneficiaries, but at least there is little likelihood of loss of trust assets without any real recourse.

if your trust was not drafted by a qualified estate planning attorney, it is likely that it is not optimized for your situation and concerns with regard to your question and other issues.

Re: trustee successor

No. A successor trustee is quite different than a beneficiary. You can, however, provide that the successor trustee receive compensation for their services, or you can decide that they do not.

A beneficiary is someone that you name to receive the final distribution of your estate. The trustee is the person who makes sure that the beneficiaries get what they are supposed to and, in the interim, protects the assets of the trust under a fiduciary duty of loyalty.

My question to you is...are you certain, considering the statment made by this person, that you still want them to be a successor trustee? It sounds like there may be a problem that could occur later if they remain as such.

Just a thought.

If you would like to discuss this matter further in a more private forum, please feel free to contact me directly at the email address provided by LawGuru or through our firm�s website located at PasadenaEstatePlanning.com

IMPORTANT:

No attorney-client nor confidential relationship is created through this communication. You may not rely in any way on this communication, and nothing herein constitutes legal advice nor legal opinion. Your issue may be time-sensitive and may result in a loss of rights if you do not obtain an attorney immediately.

Re: trustee successor

Your friend is wrong. Of greater concern to me is whether she is an appropriate choice to act as your successor trustee. The job of a trustee is not easy and requires some sophistication, even when the trustee hires a lawyer to help administer the trust. When choosing a successor trustee, you should choose someone you trust AND ALSO the skills to fulfill the legal and ethical duties of the job, of which there are many. Sometimes, our best friend or spouse is NOT the best person to serve as our trustee.