Page 32 - Successor Trustee Handbook

Once you have made a diligent search for the latest Trust document, there may be
a summary letter or summary page accompanying the Trust document. Your review
of these will help give you a quick overview of the estate plan and how it works,
particularly with respect to the manner in which the Trust will be distributed. Once
you have conducted this review, you may then wish to make an appointment with a
qualified estate and trust attorney to assist you in a more detailed review of the
Trust document. (The Family First Firm, offers a free consultation, if you qualify,
even if the Trust was not prepared by them).

If you prefer to do your own detailed review of the Trust prior to meeting with an
attorney, here are a few helpful tips. First, realize that the Trust and other
documents are written in a specialized language often referred to as “legalese”.
Although it may appear to be English, and therefore you would think that you
should be able to understand it, reading these documents is similar to reading a
technical manual for a sophisticated piece of machinery. You may find yourself
frustrated because, for a non-attorney, it may be very difficult to read and
understand. The key thing is not to allow this difficulty to cause you to
procrastinate and not move forward with your obligations as Trustee; if you “hit a
wall” in reviewing the document, be sure to see an attorney right away. Second, if
you are able to read through the document and somewhat understand it, you may
want to put notes in the margin of a copy of the document, or use Post-It Notes to
help identify key items and indicate items you do not understand. This will greatly
assist you when you have a meeting with the attorney.

The major portions of the Living Trust that you should read first are: the “Successor
Trustee”; the “Trustee Powers”; and, the “Distribution” provisions. When reviewing
these sections of the Trust, you will want to pay special attention to the following
types of items. With respect to the Successor Trustee provisions, you will want to
check whether there is to be a “Co-Trustee” acting with you and you should note
who the next Successor Trustee (after you) is, so that at some point you may
contact him or her to “place him or her on deck” if they are needed in the future.
With respect to the “Trustee Powers” section, you will want to note whether there
are any special provisions with respect to restrictions on investing and selling Trust
assets and the right to permit beneficiaries to live on Trust property. You should
also note whether there are any “Special Co-Trustee”, “Administrative Trustee” or
“Trust Protector” provisions, as these may impact you while serving as Trustee. With
respect to the “Distribution” provisions, you will want to note the following: whether
there are any specific bequests of particular assets to particular people (or to their
shares of the Trust); any restrictions on the use and/or sale of assets (such as a
beneficiary’s right to reside on a particular property or right of first refusal to
purchase a particular property); and most importantly, to whom, when and how
distributions are to be made from the Trust (including any powers of appointment
given to beneficiaries, which may allow them to change the

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