A successor trustee is the person or institution designated to take over the management and administration of a living trust when the original trustee (often the grantor, who created the trust) dies or becomes incapacitated
. This role is essentially a backup trustee who steps in to ensure the trust continues to be managed according to the grantor's instructions. Key responsibilities of a successor trustee include:
- Taking control of the trust's assets, which may include investments, real estate, bank accounts, and personal property, and managing them for the benefit of the beneficiaries
- Distributing assets to beneficiaries as outlined in the trust document, either immediately or over time
- Settling any debts or bills of the estate using trust assets and making prudent financial decisions in the best interest of the trust and its beneficiaries
- Communicating with beneficiaries about the trust's status, decisions, and distributions, and notifying them of the grantor's death or incapacity if they are not already aware
- Ensuring compliance with tax obligations, including filing tax returns and paying taxes on time
- Overseeing the final distribution of assets and formally closing the trust once its purpose is fulfilled or it reaches its termination date
The successor trustee has no power or duties while the original trustee is alive and competent, but once the original trustee can no longer serve, the successor trustee assumes full responsibility
. Choosing a successor trustee is an important estate planning decision. The successor trustee can be a trusted family member, friend, or a professional such as a bank trust department or trust company, depending on the complexity of the trust and the administrative duties involved
. In summary, a successor trustee is the designated individual or entity that manages and administers a trust after the original trustee is unable to do so, ensuring the trust's terms are carried out properly and the beneficiaries' interests are protected
