What happens if no successor trustee is named?
If there are no successor trustees nominated or they are unable or unwilling to act, the court must take immediate action to ensure that somebody is appointed. If there are no family members or other relatives willing to serve as the trustee, the court may appoint a professional fiduciary to serve as the trustee.
When is sole surviving trustee ( T ) has died, and T’s?
Practical Law’s employees are not practising solicitors or barristers. The Ask scope and rules apply. Where a sole surviving trustee (T) has died, and T’s executor (E1) then dies having obtained probate in T’s estate, can E1’s proving executor (E2) execise the section 36 (1) Trustee Act 1925 power to appoint new trustees of the trust?
What happens to a trust when the trustee dies?
A trust is a very common estate planning tool used to pass property to others and to also avoid the probate process. You can use a trust to pass property during your life, known as an “inter vivos” trust, or upon your death using what is called a “testamentary” trust. Some inter vivos trusts can be changed or terminated during your life.
What happens if there is no change of trustee?
This has to be followed strictly to ensure the change of trustee is done properly. If the trust deed has no change of trustee clause, Clause 6 of the Trustee Act NSW 1925 allows the legal personal representative of the deceased trustee to appoint a trustee. Each state and territory of Australia has similar but slightly different laws.
You should make sure to name at least one successor trustee in your trust document or leave instructions as to how a successor trustee should be chosen, so that there is a smooth transition once the trustee — whether yourself or someone else — dies. You can also try to amend your trust if your chosen successor trustee predeceases you.
This has to be followed strictly to ensure the change of trustee is done properly. If the trust deed has no change of trustee clause, Clause 6 of the Trustee Act NSW 1925 allows the legal personal representative of the deceased trustee to appoint a trustee. Each state and territory of Australia has similar but slightly different laws.
When is the sole trustee of a bare trust has died?
A question on wording from the note: “If there are no surviving trustees, the PRs of the last trustee to die can (but do not have to) act as trustees until new trustees are appointed. New trustees can be appointed as follows: The PRs of the last trustee to die can exercise the power in section 36 (1) of TA 1925.”