Also known as:successor fiduciaries · successor trustee
Written by attorneys · grounded in primary & secondary sources — see below
A fiduciary appointed to replace a prior fiduciary in administering a trust or estate. The appointment occurs when a vacancy arises through resignation, removal, or death, and the successor assumes the same duties and powers with respect to the trust property.
Sources & Authorities
How it applies
Common Examples
5
Beneficiaries Seek Removal for Changed Circumstances
Steven Silva and his siblings, all qualified beneficiaries of their parents' irrevocable trust, petition the court after the corporate trustee raises its fees dramatically following a merger. The court finds that removal best serves the beneficiaries' interests and is consistent with the trust's material purpose of cost-effective management. With a suitable successor trustee available, the court appoints Sapphire Holdings to replace the original trustee and administer the remaining assets.
Resigned Trustee Retains Protective Powers
Samantha Stone resigns as trustee of the family real-estate trust after discovering a conflict with her new business venture. Until she delivers the trust property to the successor trustee, she continues to collect rents and maintain insurance on the properties to prevent loss. The court later confirms that these interim actions were authorized to safeguard the assets during the transition.
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Restatements
Dictionaries
Removed Trustee Must Deliver Assets Promptly
Samuel Soto is removed as trustee after persistent failure to file required tax returns for the trust. He must immediately transfer all trust bank accounts, deeds, and investment records to the newly appointed successor trustee, Sterling Manufacturing's trust department. Any delay exposes him to surcharge for losses occurring during the period of nondelivery.
Successor Steps In After Trustee Death
Sydney Santos, named in the trust instrument as successor trustee, assumes office upon the sudden death of the original trustee. She immediately takes possession of the trust's brokerage accounts and begins making required distributions to the income beneficiaries while the estate is probated.
Guaranty Trust Co. v. York[326 U.S.] at 110
Court Appoints Successor for Vacant Trusteeship
Sylvia Santos, the sole remaining beneficiary of an inter vivos trust, petitions the probate court after the last trustee resigns without designating a replacement. The court appoints Solstice Ventures as successor trustee to continue administration and protect the trust corpus until final distribution.
Sullivan v. Burkin390 Mass. 864, 867, 460 N.E.2d 572 (1984)
Common questions
Frequently Asked
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When may a court remove a trustee and appoint a successor?+
A court may remove a trustee when all qualified beneficiaries request removal, a substantial change of circumstances has occurred, removal serves the beneficiaries' interests, and a suitable successor is available. The court must also confirm that removal does not contradict a material purpose of the trust.
Supporting sources
What duties does an outgoing trustee owe until the successor takes over?+
An outgoing trustee retains the duties of a trustee and the powers necessary to protect the trust property until the property is delivered to the successor or another entitled person. These duties continue unless a cotrustee remains in office or the court orders otherwise.
Supporting sources
How quickly must a removed trustee deliver trust property?+
A removed trustee must proceed expeditiously to deliver all trust property in its possession to the successor trustee or other entitled person. Failure to do so can result in personal liability for any resulting loss.
Supporting sources
Does the definition of trustee include a successor trustee?+
Yes. The term trustee includes an original, additional, and successor trustee, as well as a cotrustee. This ensures that successor trustees possess the same authority and obligations as the original trustee.
Supporting sources
390 Mass. 864, 460 N.E.2d 572 (1984)Wills Trusts and Estates
…as he might request in writing from time to time. He retained the right to revoke the trust at any time. On his death, the successor trustee is directed to pay the principal and any undistributed income equally to the defendants, George F. Cronin, Sr., and Harold J. Cronin, if they should survive him, which they did. There were…