What is a Co-Trustee
A Co-Trustee is someone who is appointed to work collectively with one or more other trustees to carry out a person’s financial wishes. This person has outlined their financial wishes in what is called a Trust account. The trustees are in place to insure that all assets within the account are dispersed the way the maker of the trust has designated. But, what happens when the maker of the trust has passed on or is no longer able to convey how they want their finances handled? Read below where Experts have resolve questions like these, for people just like you.
Can a Co-Trustee Remove the maker of a trust?
The only way the maker of a trust can be removed is if they have been deemed incompetent by a court official. A Trustee may petition the court asking that this be done if the maker is showing signs of mental deterioration.
Can a Trustee remove or name another Trustee?
The maker is the only one who can appoint or remove Trustees from their trust document. This is unless the maker has granted a Trustee power to do so in their behalf. This can also be the case if the maker has been declared legally incompetent, or in breach of fiduciary duties.
What does it mean to be in breach of fiduciary duties?
This means that a person has violated the obligation of their trusted role.
Is the Trustee responsible for keeping beneficiaries informed of finances?
If a beneficiary has expressed interest into the status of a trust, the Trustee is obligated to produce a written account. If they then fail to comply, they can be court ordered to do so at the beneficiary’s request. If they still don’t after, the court may see it as gross negligence and they will be removed from the trust.
Can a Trustee move a trust to another state?
If the maker of the trust is moved to another state, the trust itself can be moved too. If the maker is not of sound mind someone appointed to make their decisions can move the trust for them.
Are beneficiaries supposed to be notified if a trust is moved?
If it is an irrevocable trust then each trustee named on the document is within rights to be informed of the move.
Can a Trustee refuse payment to another?
Being a Trustee is a job appointed by a person who trusts another. These are paid position. A Trustee cannot to pay another for services that are outline within the trust document. The trustee who is being refused has the right to petition the court asking to be paid compensation.
Can a Trust account be closed by one Trustee?
There are a few ways a trust account can be written but for the most part, one person cannot without all other named parties agreeing to dissolve the trust.
A Trustee has an obligation to carry out the wishes of the one who appointed them the position. As you could see above, sometimes that obligation isn’t so cut and dry. So many aspects of this trusted position can leave a person wondering what the right course of action would be. Has someone you love appointed you Co-Trustee? Are you having concerns about what to do regarding a trust account? Online Experts are ready to help you solve these questions and more.