Who is the original trustee of a trust?
The Original Trustee. You will be the original trustee of your living trust. As trustee, you will have complete control over the property that will be held in the trust.
When should you create a family trust?
People usually set up a family trust to get some benefit from no longer personally owning an asset. A family trust may be useful to: Protect selected assets against claims and creditors – for example, to protect a family home from the potential failure of a business venture.
How is a trust established?
A trust is created by a settlor, who transfers title to some or all of his or her property to a trustee, who then holds title to that property in trust for the benefit of the beneficiaries. This may be done for tax reasons or to control the property and its benefits if the settlor is absent, incapacitated, or deceased.
Is there a difference between trustees and co-trustees?
The person who makes decisions about the money or property in the revocable living trust is called the trustee. A trustee can be an individual or a financial institution. If there is more than one, they are co-trustees. A person who receives money or property from the revocable living trust is called a beneficiary.
Can a trust have two trustees?
Trusts in California can have multiple trustees, not limited to merely two. California trust law requires that co-trustees act unanimously. When co-trustees do not agree with each other, one trustee may be allowed to resign from his or her role.
Can a trustee appoint a co trustee?
Under California Probate Code section 15620, unanimity applies to co-trustees “unless otherwise provided in the trust instrument.” Estate planning attorneys often will insert special language specifically allowing for action by a majority of co-trustees.
What does it mean to be a co trustee of a trust?
In addition, co-trustees must generally act cooperatively with each other, unless the trust explicitly grants certain duties to a single trustee. This means that each co-trustee must act with the full consent and knowledge of the other co-trustees.
Who are the successor co trustees of a trust?
I have reviewed many trusts that provided for multiple trustees serving together “co-trustees”. They will have language that states something like, “if at any time both grantors [trust-makers] are incapacitated or have died the successor co-trustees shall be “John Doe and Jane Doe”….”.
What happens if a co-trustee sits on the paperwork?
If a co-trustee sat on the paperwork, the buyer walked and the trust remained unfunded with cash to help pay the tuition for the beneficiaries, the beneficiaries could have a claim against the lazy co-trustee could be personally liable for all interest from a student loan that they had to get because the trust money was not available.
What happens when a grantor names multiple trustees?
When a grantor names multiple trustees, or co-trustees, they are responsible for co-managing the trust’s assets. It is important to know what and how much power each co-trustee has over the management of the trust’s assets.
