Can a court of equity appoint a trustee?
See, e.g., In re Dorrance’s Will, 3 A.2d 682 (Pa. 1939). If any problem arises with the proposed trustee, such as failing to qualify or declining the appointment, a court of equity will appoint a trustee and the trust will not fail for lack of a trustee.
Who is eligible to be a trustee of a trust?
Generally, anyone who has the capacity to acquire or hold title to the particular property for his or her own benefit also has the capacity to receive the property as trustee. In addition, the trustee must have the capacity to administer the trust, thereby excluding minors and mentally disabled persons.
Can a settlor declare himself to be a trustee?
As was seen in Chapter 7, however, it is also equally satisfactory to create an express trust by the settlor declaring themselves to be the trustee and holding the trust property on trust for the beneficiary. In both cases, the beneficiary enjoys an equitable interest in the trust property.
How is a trustee appointed in a will?
Usually, the court appoints the trustee named in the will. This is similar to the court appointing the executor named in the will. Since the appointment comes from the court, the trustee is responsible to the court and must account to it at various times.
See, e.g., In re Dorrance’s Will, 3 A.2d 682 (Pa. 1939). If any problem arises with the proposed trustee, such as failing to qualify or declining the appointment, a court of equity will appoint a trustee and the trust will not fail for lack of a trustee.
Usually, the court appoints the trustee named in the will. This is similar to the court appointing the executor named in the will. Since the appointment comes from the court, the trustee is responsible to the court and must account to it at various times.
Can a court change the trustee of a trust?
Generally, you need to have sufficient legal grounds for removing a trustee. This includes such matters as mismanaging trust assets, mental incompetence, or some type of fraud involving the trust assets. In some states, the court may change the trustee upon the desire of the trustor, if still alive, and all beneficiaries.
Generally, anyone who has the capacity to acquire or hold title to the particular property for his or her own benefit also has the capacity to receive the property as trustee. In addition, the trustee must have the capacity to administer the trust, thereby excluding minors and mentally disabled persons.