What is a Successor Trustee?
When you make a trust in Georgia — any type of trust — that trust will need to have a trustee who manages the assets within it. A trustee can be a person but may also be an entity (such as a financial firm or bank) that has the responsibility of administering the trust, managing the assets in the trust, and distributing the assets to beneficiaries according to the terms of the trust. Trustees are fiduciaries, or have a fiduciary duty, which means that trustees must legally act in the financial best interests of the beneficiaries of the trust. When a settlor (the person who makes a trust) creates a revocable living trust, that person often serves as their own trustee. In other types of irrevocable trusts, a third-party trustee may be appointed. In general, under Georgia law, “a settlor may appoint trustees or grant that power to others, including trust beneficiaries.”
In addition to appointing a trustee, it is also important to consider appointing a successor trustee — whether you are the trustee of the trust you created or another party is the trustee. Our Gwinnett County estate planning lawyers can clarify below, and we can assist you today with all aspects of making a trust.
What Does a Successor Trustee Do?
A successor trustee is a trustee who is appointed as the trustee in the event that the originally appointed trustee cannot fulfill their duties. Under Georgia law, when a successor trustee takes over as trustee, “a trustee appointed as a successor trustee shall have all the authority of the original trustee.” In other words, the successor trustee will have exactly the same role and duties as the original trustee once they step into this role.
A successor trustee can become the trustee of a trust when an original trustee becomes legally incompetent or incapacitated, or when an original trustee dies.
Who Needs a Successor Trustee?
Ideally, any trust that is created should have a successor trustee.
If you create a revocable living trust and appoint yourself as the trustee (which is common in Georgia with this type of trust), it is essential to appoint a successor trustee in the event of your legal incapacity or death. By appointing a successor trustee, you can ensure that someone you trust steps into the role of trustee and handles the trust accordingly.
For various types of irrevocable trusts, it is also important to consider the appointment of a successor trustee. Nearly anything can happen that might render the original trustee unable to fulfill their duties. In such cases, the successor trustee can fill the vacant role without delaying or complicating the administration of the trust.
Contact a Norcross Estate Planning Attorney for Assistance with Your Trust and Other Estate Planning Needs in Georgia
Whether you have questions about naming a successor trustee or other aspects of creating a trust, or you need assistance with other aspects of estate planning in Georgia, an experienced Norcross estate planning lawyer at Bowman Law Firm can help. We represent clients in Norcross and throughout Gwinnett County with a wide range of estate planning needs, and we can speak with you today about creating trusts, a will, an advance directive for health care, powers of attorney, and other essential estate planning documents. Contact our firm to learn more about how we can assist you.
Source:
law.justia.com/codes/georgia/title-53/chapter-12/article-11/part-1/section-53-12-201/
