Hello,
I have some questions about an Irrevocable Trust that was established in Michigan. My dad set up a living trust many years ago that converted to an Irrevocable Trust when he passed away in 1979. The trust named my mother and a local bank as co-trustees. The bank resigned their position a long (25+) years ago leaving my mom as sole trustee. The trust is set up so my mom lives off the income and upon her death the assets are divided equally among the three children. My mom recently suffered a fall with multiple fractures and it has made us think about what would happen to the trust if she became unable to serve as trustee. Most of the trust assets are in a Charles Schwab account. They have told us for these types of accounts, a Durable Power of Attorney is not enough for them to give someone else access to the trust funds. They suggested my mom should add a co-trustee or successor trustee. The trust has language if my mom wanted to hire a different corporate trustee, but does not say anything about adding a private individual as a co-trustee or successor trustee.
1. Can my mom, as sole trustee of the account, add me (one of the beneficiaries of the trust) as a successor trustee? I am thinking it should name me first, and if I am not available or willing, name one sister second and the other third. This way all beneficiaries are in the amendment and all contingencies are covered.
2. If yes above, is the best way to do this to hire a Michigan estate attorney to draft an amendment to the trust?
3. If no, could my mom add me as a co-trustee? Or, is my mom's only choice to hire another corporate trustee?
4. Would any amendment require the signatures of both sisters is the intent of the trust is/will not be changed? One sister is not well and this is not a good time to bring this up.
5. If we do nothing, what happens when my mother dies? Who would actually file the paperwork and split the assets among the children? Her executor? As I understand it, the trust assets do not technically belong to her and are not part of her estate.
Thanks so much for your help and advice!
I have some questions about an Irrevocable Trust that was established in Michigan. My dad set up a living trust many years ago that converted to an Irrevocable Trust when he passed away in 1979. The trust named my mother and a local bank as co-trustees. The bank resigned their position a long (25+) years ago leaving my mom as sole trustee. The trust is set up so my mom lives off the income and upon her death the assets are divided equally among the three children. My mom recently suffered a fall with multiple fractures and it has made us think about what would happen to the trust if she became unable to serve as trustee. Most of the trust assets are in a Charles Schwab account. They have told us for these types of accounts, a Durable Power of Attorney is not enough for them to give someone else access to the trust funds. They suggested my mom should add a co-trustee or successor trustee. The trust has language if my mom wanted to hire a different corporate trustee, but does not say anything about adding a private individual as a co-trustee or successor trustee.
1. Can my mom, as sole trustee of the account, add me (one of the beneficiaries of the trust) as a successor trustee? I am thinking it should name me first, and if I am not available or willing, name one sister second and the other third. This way all beneficiaries are in the amendment and all contingencies are covered.
2. If yes above, is the best way to do this to hire a Michigan estate attorney to draft an amendment to the trust?
3. If no, could my mom add me as a co-trustee? Or, is my mom's only choice to hire another corporate trustee?
4. Would any amendment require the signatures of both sisters is the intent of the trust is/will not be changed? One sister is not well and this is not a good time to bring this up.
5. If we do nothing, what happens when my mother dies? Who would actually file the paperwork and split the assets among the children? Her executor? As I understand it, the trust assets do not technically belong to her and are not part of her estate.
Thanks so much for your help and advice!
Trusts: Adding Beneficiary As Successor Trustee to Irrevocable Trust
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