Essentials of a Revocable Living Trust: Trustees, Co-Trustees, and Successor Trustees

A revocable living trust is a legal document of significant importance. One crucial aspect of establishing a revocable living trust is appointing trustees to handle various responsibilities. Know about the roles and responsibilities of trustees, co-trustees, and successor trustees in a sample revocable living trust.

Trustees

Trustees are individuals appointed by the trust creator, also known as the grantor or settlor, to manage the assets held within the revocable living trust, such as:

• Real estate,

• Investments, and

• Financial accounts

They are responsible for ensuring the proper administration and distribution of assets according to the grantor's wishes.

Trustees have a fiduciary duty to act in the best interests of the beneficiaries. They must exercise care, loyalty, and prudence in managing the trust. They must make informed decisions regarding asset allocation, investments, and asset protection.

Co-Trustees

In some cases, the grantor of a revocable living trust form in Minnesota may appoint multiple individuals to serve as co-trustees. They share the responsibilities and decision-making authority. They are responsible for maintaining accurate records of all trust-related transactions, including:

• Income,

• Expenses,

• Distributions, and

• Any changes to the terms of the trust.

This arrangement can be beneficial when the grantor wants to ensure a collaborative approach to trust management or wishes to involve multiple family members or professionals in the trustee role. Co-trustees must work together and make decisions regarding the trust's assets and distributions jointly.

Successor Trustees

Successor trustees are individuals designated to take over the trustee's role upon their resignation, incapacity, or death. The grantor appoints them to ensure a smooth transition and continuity in the management of the trust.

Successor trustees step into the role with the same fiduciary responsibilities and duties as the original trustee, ensuring the trust's assets are protected and distributed according to the grantor's wishes.

It is crucial to understand the roles and responsibilities of each type of trustee before you establish a revocable living trust. Whether you appoint a single trustee, co-trustees, or designate successor trustees, careful consideration and clear communication are essential to ensure the effective administration of your trust.

Author Bio:

Carl writes often about legal drafting and help.