Page 17 - Successor Trustee Handbook

Refrain from making loans, gifts or distributions to or for the benefit of
anyone other than the Trustor (and the Trustor’s spouse), without first going over
the Living Trust document with an attorney and determining the extent to which
such loans, gifts or distributions are permitted and are advisable. (See the
Chapter, “Making Distributions to the Beneficiaries”).

Check with an attorney as to the advisability of executing a “HIPAA
Authorization” and providing it to the next Successor Trustee, in the event you are
unable to act at some time in the future. (See the Chapter, “Transition to Another
Trustee”).

If the Trustor should recover, and become capable of acting then as his or her own
Trustee, and he or she wishes to do so, he or she should see an attorney about
executing an amendment to the Living Trust to place himself or herself back
as Trustee (or Co-Trustee). Alternatively (and preferably, in order to avoid issues
with third-parties), the Trustor should obtain doctor letters now stating that the
Trustor is fully capable of handling his or her own affairs. Unless the Trust requires,
they don’t have to be the same doctors who may have earlier declared the Trustor
incapacitated. Thereafter, the title to assets will need to be changed back to the
name of the Trustor as Trustee (or Co-Trustee) and some of the other steps above
will also need to be taken. (See the Chapter, “Transition to Another Trustee”). If
the Trustor claims that he or she is capable of once again serving as Trustee, but
you do not feel that is the case, it may become necessary for you or the Trustor to
file a petition in the Probate Court to determine the Trustor’s legal capacity.

Now, go ahead and read the rest of this Manual beginning with the Chapter,
“Reviewing the Trust (and Other Estate Plan Documents)”. Before you proceed, it’s
a good idea to see if you qualify for a free initial consultation with Family First
Firm, unless you have already done so!

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