What if Your Trustee Becomes Incapacitated?

Estate planners often discuss how trustees can help when a person becomes incapacitated. However, few conversations discuss what to do when a trustee becomes incapacitated. A recent article discusses how to deal with trustee incapacity.

From the start, those creating trust accounts should consider the possibility that a trustee may, at some point, become incapacitated. With this consideration in mind, the originating documents of a trust account should detail steps to take under this circumstance. This should contain instructions for the managed exit or hiatus of an incapacitated member. Having instructions clearly laid out will prove much easier than attempting to ‘fix’ the problem after it has already occurred.

If your trust documents do not include a provision detailing how a trustee can be relieved of his services, you may need to bring the matter before a court and ask a judge to make the necessary adjustments to your trust. This, alternative, of course, will be much more time consuming and expensive than if the trust already outlined the procedures for replacing a trustee.

Importantly, if you are one of several beneficiaries to the trust, it is important that you contact all trust beneficiaries before modifying the trust. For assistance in dealing with trustee incapacity, contact us at (626) 696-3145.

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