How Do You Change The Trustee Of A Living Trust ?
A living trust is a trust created in the lifetime of an individual wherein his or her estate is consolidated and the ownership transferred to the trust. The individual in this case is called the grantor, and may appoint himself as the trustee during his or her lifetime.
During this period, assets may be taken from or added to the trust at the discretion of the trustee who in the first instance is the individual or grantor. In this manner a living trust gives control to the trustee of his assets during his lifetime.
Another trustee is appointed to administer the trust in case the grantor is incapacitated or dies. Such trustee can be an individual or an institution. The trustee acts in accordance with the instructions of the trust on the grantor’s demise. The trustee oversees the payment of federal taxes then transfers the ownership of the assets to the beneficiaries named in the trust in accordance with the terms stipulated in it. Immediately the transfer is complete, the living trust no longer exists.
A trust can be ‘revocable’ and is more commonly called a family trust. The grantor, if also the primary trustee, during his lifetime is at liberty to change the terms of the trust and if desired, even reclaim the property. The grantor can also change, at will and pleasure, the post-decease-nominated trustee and reappoint another in place.So, how do you change the trustee of a living trust? The Declaration of Trust that names the trustee has to be amended in order to change the trustee of a living trust. This can only be undertaken by the grantor, who has established the living trust. For this, the grantor's attorney will have to change the name of the trustee as directed by the grantor.
The advantage in a living trust is that it avoids the protracted process of probate in a court of law. Probate, which is little more than a court-supervised distribution of assets in accordance with an individuals will, or in event he dies without one, can be long and cumbersome. It also avoids unnecessary legal costs and preserves the privacy of the estate and its distribution as there is no obligation to make the details public like a will.
More Articles :