Page 20 - Successor Trustee Handbook

Take the legal steps necessary for you to assume the position of
Trustee. If you are the spouse of the Trustor and have already been serving
as a Co-Trustee, you may be able to act as a sole Trustee/owner on certain
accounts without requiring further legal documents. However, it is still
advisable that you pursue the following steps in order to take over other
matters as sole Trustee. Whether you are the spouse or not, if you are the
first Successor Trustee named in the Trust, the process of properly installing
you as acting Trustee usually simply involves obtaining a “Trust Certification”.
This is a document prepared by an attorney that verifies your authority to act
as Trustee under the terms of the Trust and has attached a copy of the Trust
and death certificate; that way, you will be able to transact business more
quickly and smoothly with third parties, such as banks, mutual fund
companies, real estate escrows, etc. If you are not the first Successor
Trustee named in the Trust, the process may be more complicated and
involve the resignation or removal of a prior Trustee, or that Trustee’s death
certificate, before you can obtain the Trust Certification. Sometimes, a prior
Trustee, the beneficiaries or a special party to the Trust (such as a “Special
Co-Trustee” or “Trust Protector”) may have the authority to appoint and
install you as Trustee and this may need to be done before you can obtain
the Trust Certification. If all of these options fail to install you as the new
Trustee, you may need to file a petition with the Probate Court. Regardless
of the procedure used, you will likely need a Trust Certification when dealing
with third-parties. (For more details, see the Chapter, “Transition to Another
Trustee”).

Notify the next Successor Trustee as well as the beneficiaries of the
Trust. The people you will be required by law to notify and how you must
notify them will be determined both by the Living Trust document and state
law, so you may want to consult an attorney. (See the Chapter, “Transition
to Another Trustee”).

Establish immediate control over the assets in the Trustor’s home. You
may need to place valuables in safe, locked places and may even need to
change the door locks in order to prevent “beneficiary raids”. You may also
want to write down a simple inventory of personal items (not necessarily
every little thing in complete detail), just in case beneficiaries start to
“borrow” items.

Terminate any credit cards in the Trustor’s name. Let the credit card
companies (as well as mortgage companies, utilities and other known
creditors) know about the Trustor’s death and when they can expect
payment; they usually will give you a “grace period” and agree to waive any
late charges. You may also want to ask your attorney whether a formal
notice to creditors should be published or mailed.

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