Can a beneficiary be a co trustee?

A beneficiary serving as trustee may run afoul of the tax protections offered by a trust, and some states do not allow a sole-beneficiary to serve as trustee. However, using a co-trustee may allow the beneficiary to also serve as co-trustee to help maintain the tax protections.

What happens if a brother or sister becomes a trustee?

Depending on the way the trust is set, there can be a situation, where the person that’s the trustee overseeing the money for their brother or their sister, will receive a windfall if that money is not actually given to that brother or sister. Imagine a situation where the bad brother passes away and the trustee receives the balance that’s left.

When do you become a co-trustee of a family trust?

You are happy to help. You are later added as co-trustee when Aunt Joan falls ill. Sadly she passes away and a couple of months later Uncle Dan moves the funds into his own trust and starts spending them. You don’t concern yourself too much but something is gnawing at you.

What happens when a grantor names multiple trustees?

When a grantor names multiple trustees, or co-trustees, they are responsible for co-managing the trust’s assets. It is important to know what and how much power each co-trustee has over the management of the trust’s assets.

What are the powers of a co trustee?

If a co-trustee does not agree with another co-trustee’s action or decision, they have the authority to object in writing and, if necessary, submit a petition in probate court to try to prevent it.

Can a parent be a co-trustee of a trust?

The parent is the trustee while alive. For these purposes, let’s assume that the parent is a widow. She is the mother of four living children. She names two of her four children as successor co-trustees of her trust. These two are to assume the obligations and responsibilities of the trustee at their mother’s death.

Can a co-trustee of a trust be removed?

This is a possibility even if all other beneficiaries join together in seeking the removal of the co-trustee living in the trust’s home. California courts regularly appoint professional fiduciaries licensed under the Professional Fiduciaries Act as the sole successor trustee of the trust.

Can a beneficiary of an irrevocable trust be changed?

Most are revocable unless the arrangement states otherwise. With this, the grantor can modify the terms, terminate it altogether, or even change beneficiaries. An irrevocable trust cannot be changed or terminated unless by court order. However, beneficiaries have greater rights here since the recipient designations cannot typically be altered.

Who are the named beneficiaries of a trust?

A trust is a legal document that governs how the grantor’s assets pass to the named beneficiaries upon the grantor’s death. When a grantor establishes a trust, a single trustee manages the trust’s assets on behalf of the named beneficiaries.