Page 16 - Successor Trustee Handbook

Be sure the assets already in the name of the Living Trust are re-titled to
show you as the Trustee of the Trust. How this is done may differ depending
on the type of asset. (See the Chapter, “Maintaining Title to Assets, Transacting
Business and Paying Expenses”). If you find assets that, for any reason, are not
already in the name of the Living Trust, you may need to use the Trustor’s Durable
Power of Attorney for Property to re-title such assets into the Trust name, with you
as Trustee; however, many third-parties do not like to rely on Powers of Attorney
for such title transfers, and you may require the assistance of an attorney. If you
are the Trustor’s spouse and have already been acting as sole Trustee or Co-
Trustee, you may not need to immediately do any significant paperwork; this is
often true on certain banking and financial institution accounts, but you will likely
need to go through the above procedures with respect to any real estate, as well
as certain other assets. It may be critically important to get the Trustor’s name off
the title to accounts and assets as quickly as possible, in order to prevent
“looting” by unscrupulous parties who may influence or coerce the Trustor into
signing away assets. (Note: For the same reason, you may want to contact credit
card companies and immediately close the accounts).

Actively take over management of Trust property. As Trustee, it is your duty
to manage the affairs of the Trustor to the same degree as would a reasonable,
prudent person. This duty includes placing cash assets in interest-bearing
accounts, refraining from speculative investments, paying bills in a timely fashion
and maintaining proper records. You are permitted to delegate some of these
duties to responsible professionals and pay their reasonable fees from the Trust.
(For more details, see the Chapters, “Your Trustee Duties”, “Your Liability as a
Trustee”, “Maintaining Title to Assets, Transacting Business and Paying Expenses”,
“Investing Trust Assets”, and “Recordkeeping”).

You should be sure that all liability, fire, homeowner’s and personal
property insurance policies are (and continue to be) in force and effect and
have been “endorsed” to the Trust, naming you as Successor Trustee.
Should there be no such insurance coverage on real and personal property, you
should consult with an appropriate insurance agent to review your needs and
obtain adequate coverage. (It’s probably a good idea to have an insurance
agent review all the ones already in place too, to be sure they are adequate
based on the current market values of assets.)

Consult with an accountant, at the earliest possible time, to help you
establish a recordkeeping system, as the accountant will not only need
organized information for tax purposes, but you may in the future be required to
provide an accurate accounting to the beneficiaries. (See the Chapter,
“Accounting to the Beneficiaries”). Usually, if you are the spouse of the Trustor,
you will not be required to provide an accounting to other family
members/beneficiaries of your income, expenses and transactions; the terms of
the Trust will need to be reviewed.

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