Miscellaneous

Can you have co-trustees on a trust?

Can you have co-trustees on a trust?

If you’re the grantor and trustee of your revocable living trust, you may also appoint someone to serve as co-trustee with you. For example, you and your spouse could be co-trustees of your family trust or joint trust. You could also name your daughter as successor trustee to take over once you pass away.

Is there a difference between trustees and co-trustees?

The person who makes decisions about the money or property in the revocable living trust is called the trustee. A trustee can be an individual or a financial institution. If there is more than one, they are co-trustees. A person who receives money or property from the revocable living trust is called a beneficiary.

What is the relationship between trustees and trust beneficiaries of a trust?

THE TRUSTEES A BENEFICIARY may be appointed as TRUSTEE and, if there is no conflict of interest, the FOUNDER may also be so appointed. The TRUSTEES have no personal rights to or interest in the TRUST ASSETS but simply hold, administer and manage the TRUST ASSETS for the benefit of the BENEFICIARIES.

Do both trustees need to sign tax return?

If a trust has two trustees, one of whom is the beneficiary, can either sign the tax return? Yes, any fiduciary may sign the trust’s income tax return.

Are there problems when siblings act as co-trustees?

On the face of it, yes. But as an experienced estate planning attorney I invariably find myself cautioning these parents. Problems almost certainly will arise whenever siblings act as co-trustees. The challenges begin with hassles such as having to co-sign bank, mortgage and escrow documents relating to the trust.

What does it mean to be a co trustee of a trust?

In addition, co-trustees must generally act cooperatively with each other, unless the trust explicitly grants certain duties to a single trustee. This means that each co-trustee must act with the full consent and knowledge of the other co-trustees.

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 duties of a successor trustee?

Generally we think of a successor trustee taking over the management of a trust in the event of the death or incompetency of the current trustee. These duties would include managing the assets, filing a tax return for the estate, and either closing the trust or managing the trust if there are minor children or special circumstances.

On the face of it, yes. But as an experienced estate planning attorney I invariably find myself cautioning these parents. Problems almost certainly will arise whenever siblings act as co-trustees. The challenges begin with hassles such as having to co-sign bank, mortgage and escrow documents relating to the trust.

In addition, co-trustees must generally act cooperatively with each other, unless the trust explicitly grants certain duties to a single trustee. This means that each co-trustee must act with the full consent and knowledge of the other co-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.

Are there any conflicts of interest with trustees?

The first problem is the potential conflict of interest that can arise. 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.