Florida Estate Planning Lawyer Blog
Every trust needs at least one trustee to administer the trust and to carry on its terms. If a person designated as a trustee ceases to act as one, then a vacancy in the trust occurs and it might need to be filled. Succession of trustees is perhaps one of the most common occurrences in the administration of a trust. A succession of trustee can be done by the terms of the trust, by the beneficiaries, or by appointment of the court. The overriding concept is that if one trustee ceases to act for any reason, the result depends upon the circumstances of each case. This is why it is wise to consult an estate-planning attorney to analyze all the factors affecting your case and assist you with this issue.
1. When does a vacancy occur?
A vacancy in a trusteeship occurs in the following circumstances:
· A person designated as trustee declines the trusteeship.
· A person designated as trustee cannot be identified or does not exists.
· A trustee resigns.
· A trustee is disqualified or removed.
· A trustee dies.
· A trustee is adjudicated to be incapacitated.
2. When does a vacancy need to be filled?
A vacancy in a trusteeship must be filled if the trust has no remaining trustee. If one or more co-trustees remain in office, however, then a vacancy in a trusteeship does not need to be filled.
3. Priorities in filling a vacancy in a trusteeship of a non-charitable trust.
A vacancy in a trusteeship of a non-charitable trust that is required to be filled must be filled in the following order of priority:
· By a person named or designated pursuant to the terms of the trust to act as successor trustee.
· By a person appointed by unanimous agreement of the qualified beneficiaries.
· By a person appointed by the court.
4. Priorities in filling a vacancy in a trusteeship of a charitable trust.
A vacancy in a trusteeship of a charitable trust that is required to be filled must be filled in the following order of priority:
· By a person named or designated pursuant to the terms of the trust to act as successor trustee.
· By a person selected by unanimous agreement of the charitable organizations expressly designated to receive distributions under the terms of the trust.
· By a person appointed by the court.
5. Appointment of an additional trustee or special fiduciary by the court.
The court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust. This is so whether or not a vacancy in a trusteeship exists, or whether or not a vacancy is required to be filled.
The Law Office of David M. Goldman PLLC has experienced estate-planning attorneys that can apply the law to your particular circumstances to effectively assist you in a succession of trustee. Remember that the results in a succession of trustee depend upon the circumstances of each case. Moreover, the answer might not be as straightforward as it appears. For example, even if the terms of the trust designate a person to act as successor trustee, those terms might be invalid or the designated person might not qualify as a trustee. To contact the Law Office of David M. Goldman PLLC, dial (904) 685 – 1200 or click the “Contact Us” tab at the top of the page.