The person who makes decisions about the money or property in the revocable living trust is called the trustee. If there is more than one, they are co-trustees. A successor trustee may also be named and acts only if a trustee can no longer fulfill that role.
Can you be a co trustee and beneficiary?
The short answer to the topic question is yes, in California, a trustee can also be a beneficiary, but there are several serious concerns you need to be aware of to ensure your trust doesn’t become legally invalid. The trustee will hold the legal title and the beneficiary will hold the equitable title.
When do you become a co-trustee of a family trust?
You are happy to help. You are later added as co-trustee when Aunt Joan falls ill. Sadly she passes away and a couple of months later Uncle Dan moves the funds into his own trust and starts spending them. You don’t concern yourself too much but something is gnawing at you.
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.
How to avoid common co-trustee problems in a trust?
A common way to avoid common co-trustee problems is to name a trust administrating institution, like a bank or trust company, as the principal trustee, with children or other beneficiaries as co-trustees. That essentially places control of trust with an independent third party, who can be an mediator if the co-trustees cannot agree.
What are the responsibilities of a co-trustee in California?
The California Probate Code (in Section 16013) clearly stipulates the obligations of each trustee in a situation where co-trustees exist . Each one must “participate in the administration of the trust.”
