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A successor trustee is a person appointed to succeed the current trustee of a trust, in case the current trustee becomes incapacitated, resigns, dies, or is otherwise unable to fulfill their duties. The role of the successor trustee is important to ensure that the management of the trust continues until the trust is terminated.
If a trust does not have a successor trustee and there is no procedure for the selection of the successor trustee in the trust document, the beneficiaries may petition the court to appoint a successor trustee. A trust does not fail just because there is no successor trustee.
The Role of the Successor Trustee
The presence of successor trustee ensures that the trust’s affairs continue in the absence, removal, death, or incapacity of the trustee.
For revocable trusts where the grantor is also the trustee and beneficiary, the death of the grantor triggers the appointment of the successor trustee and the management of the trust property for the benefit of the beneficiaries, similar to probate proceedings. Unlike probate proceedings, however, the trustee does not need to immediately distribute the trust property to the beneficiaries but must manage the trust property in accordance with the trust document. For example, some trusts appoint a lifetime income beneficiary for the trust property, and after the death of the lifetime income beneficiary, the trust principal is distributed to the remainder beneficiaries. In some revocable trusts, however, trust property is immediately distributed after the death of the grantor, which makes it a perfect substitute for probate proceedings. In New York, a trust can last up to 21 years after the death of the last beneficiary who was alive and known to the grantor at the time it was created.
The Absence of a Successor Trustee
The absence of a successor trustee does not invalidate or terminate the trust. In New York, when there is no successor trustee designated in the trust agreement to hold the trust property after the trustee dies and there is no procedure outlined in the trust agreement for the appointment of a successor trustee, the beneficiaries may petition the court with jurisdiction for the issuance of letters of trusteeship to a qualified person.
Trustee matters may be cumbersome, especially when there are complications regarding the appointment of a successor trustee. Should you need assistance in drafting a trust agreement, we at the Law Offices of Albert Goodwin are here for you. We have offices in New York City, Brooklyn, NY and Queens, NY. You can call us at 212-233-1233 or send us an email at [email protected].
About the Author
Albert Goodwin Esq. is a licenced New York attorney with over 17 years of courtroom experience. His extensive knowledge and expertise make him well-qualified to write authoritative articles on a wide range of legal topics. He can be reached at 212-233-1233 or [email protected].
