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Who is the trustee of the grantor trust?

Who is the trustee of the grantor trust?

The trustee (e.g. executor) is the person appointed by the grantor to take charge of managing the trust. A trustee can be just one person or a group of people.

How does a grantor work in a revocable trust?

An individual nominated as a trustee holds the right to decline the appointment or drop the role completely. The grantor has the authority to remove the third party trustee in a revocable trust. The trustee may also be relieved of his duties if it has been stipulated as an option in the trust agreement.

Can a trustee resign from trust duties in California?

When a Trust fails to provide a procedure for selecting a successor, then you must go to court and ask the court to appoint a successor Trustee for you. When a Trustee resigns, they must still act in the best interests of the Trust and the Trust beneficiaries. That means the Trust assets must be managed prudently while a new Trustee is selected.

Can a grantor transfer property into a trust?

The grantor holds the legal authority to transfer property into a trust. A trust can either be one that is modifiable at any time (revocable trust), or one that is not subject to any revisions. The Uniform Trust Code holds that all trusts are revocable unless stated otherwise in the terms and conditions of the trust.

Can a grantor be the trustee of a trust?

Whenever the grantor intends for the trust to be used to remove assets from his or her estate, then the grantor cannot be the trust. The grantor cannot be involved in any decisions regarding how the trust property is used or how the distributions are made.

What are the responsibilities of a trust in California?

California courts typically hold trustees to a very high standard, as they are expected to be sensible, trustworthy and unbiased. The trustee is expected to protect the trust property, report to the beneficiaries, diversify all investments, keep accurate and complete records, and defend the trust against any viable legal claims.

How can a trust be modified in California?

California trust laws also allow modification in a number of circumstances, usually with court approval. An irrevocable trust can be modified under special circumstances, if all beneficiaries agree, by petitioning the probate court.

Who is the grantor of a revocable living trust?

In fact, in the context of a revocable living trust the person establishing a trust is usually the Grantor, the Initial Trustee, and the primary Beneficiary of the trust all at the same time. As Grantor you establish the rules for management of assets during your lifetime and the distribution of your assets after you die.

Can a trustee sue on behalf of the trust?

Having two Trustees sound prudent but opens conflicts within the family. The bottom line, you’re setting your family up for battles. Now the question is, “Can a trustee Sue on behalf of the Trust.” 1st takeaway: Contact a Trust Litigation Attorney and will set it straight based on your circumstances.

What are the problems of successor co-trustees in a trust?

This can also slow down or cause problems when one trustee goes out of town for vacation, is incapacitated, etc. A well written trust agreement should provide for replacement of a co-trustee who cannot serve for some reason, or state that the remaining co-trustee can act alone in this scenario.

Can a grantor remove a trustee from a revocable trust?

The grantor has the authority to remove the third party trustee in a revocable trust. The trustee may also be relieved of his duties if it has been stipulated as an option in the trust agreement. In instances where an irrevocable trust is in effect, the beneficiaries can replace the trustee with a majority vote if granted by the trust instrument.

When does a co trustee have the right to sue?

A co-trustee has the right to sue another co-trustee if she reasonably believes a breach has occurred. The co-trustee may file the lawsuit as an individual or as a representative of the trust.

The trustee (e.g. executor) is the person appointed by the grantor to take charge of managing the trust. A trustee can be just one person or a group of people.

When do successor co-trustees take over a trust?

After one of those events, a successor trustee takes over the trust to manage and administer the trust assets. Some trust creators have two children or have two people they trust enough to make them successor co-trustees of their trust, which puts two people in charge of the trust simultaneously.

The grantor has the authority to remove the third party trustee in a revocable trust. The trustee may also be relieved of his duties if it has been stipulated as an option in the trust agreement. In instances where an irrevocable trust is in effect, the beneficiaries can replace the trustee with a majority vote if granted by the trust instrument.