Is a successor trustee a grantor?

A Successor Trustee is the person responsible for administering the trust after its Grantor either passes away or becomes “Incapacitated” – that is, unable to administer the trust for themselves.

A Successor Trustee is the person responsible for administering and settling a Trust after the creator (called the Grantor) of the Trust dies. In a Living Trust, the Grantor often serves as the initial Trustee until their death but will eventually need a successor to take over.

Can a grantor appoint a successor trustee at any time?

Interestingly, there is no problem appointing, at the inception of the trust, an initial or successor trustee who is related or subordinate to the grantor. Planning Tip: It is unclear if a grantor can have the right only to remove a trustee and allow the next named successor trustee to take over.

Who is in charge when the grantor of a trust dies?

File the deceased grantor’s final income tax returns. (This is the responsibility of the executor of the estate.) When the grantor of an individual trust dies, the successor trustee is in charge. If more than one person is named in the trust document as successor trustee, they all serve together.

Who is the successor trustee for a revocable living trust?

Toby Walters is a financial writer, investor, and lifelong learner. He has a passion for analyzing economic and financial data and sharing it with others. When you set up your revocable living trust, you must name a successor trustee—someone to step in and administer and settle your trust for you after your death.

Can a non adverse trustee replace a fiduciary?

While also unclear, it seems that a grantor can reserve the right to remove and replace someone who is not a fiduciary (for example, a trust protector). Income Tax A non-adverse trustee having certain powers may trigger grantor trust rules and cause the grantor to be taxed on the trust’s income.