When executors cannot agree?
If an agreement cannot be reached through negotiations, and a Grant of Representation has already been issued by the Probate Court, then it is possible for one Executor to apply to the Court to remove the other.
What happens if a trustee does not know about a trust?
Trusts may have certain assets or tax attributes which require special care by the trustee. If the trustee does not properly address these issues, or worse yet, does not even know the issues exist, the trustee could harm the trust and the beneficiaries, leaving itself exposed to liability.
What are the responsibilities of a co-trustee?
Many people choose to be their own trustee and continue to manage their affairs for as long as they are able. Married couples are often co-trustees, so that when one dies or becomes incapacitated, the surviving spouse can continue to handle their finances with no other actions or steps required, including court interference.
Can a corporate trustee be an individual trustee?
A trustee can be either: a corporate trustee (a registered company). Setting up a trust with a corporate trustee may require more time and additional cost, as you will need to register a company, but there are many benefits associated with doing so. These benefits include greater asset protection and limited liability.
What are the top issues that get trustees in trouble?
The Top Issues that Get Trustees in Trouble: 1. Investment Issues a. Trust owns non-income producing property or underperforming assets. b. Trust assets are not diversified. c. Inappropriate investments for purpose of trust. d. Too risky / Too safe.
When do co-trustees of a trust do not trust one another?
If co-trustees do not trust one anther, do not get along, or just do not agree with the decision of the other co-trustee, it may require court intervention to break the disagreement. For example, if one trustee wants to sell some property and distribute cash and a co-trustee wants to retain the property, there is a stalemate.
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.
Are there any banks that do not recognize co-trustees?
Below are three common problems that are sometimes faced, including the issue you described with the bank: More and more financial institutions (banks, credit unions, etc.) will not recognize the authority of co-trustees who must act jointly.
What’s the best way to avoid co trustee problems?
Another way to avoid common co-trustee problems is to name a trust administrating institution, such as a professional trust company, a trust department of a bank, or a law firm, as the trustee, with children or other beneficiaries as Trust Protectors who can remove and replace the professional trustee at any time.