Tuesday, January 4, 2011

Estate Planning Mistakes - Number Thirteen


Do not appoint the wrong Trustee. A Trustee is a person or institution that manages assets placed in a Trust for the benefit of named beneficiaries. Unlike an Executor whose role ends after probate has been finalized, the Trustee's role continues for the term of the Trust which could be for a period years or until the assets have all been expended.

In order to remove a Trustee, the Court must believe that removal would be in the best interest of the beneficiaries and would not be inconsistent with the material purpose of the trust. Further, a Trustee can be removed if a serious breach of trust has been committed by the Trustee; there has been a substantial change of circumstances; incompetence of the Trustee; and any other violation which can be presented and substantiated before the Court.

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