Long Island Elder Law & Estate Planning

New York Successor Trustee

Trusts are a common addition to the average estate plan, often used for incapacity planning and/or as a quick and easy way to distribute assets after death. When used for these purposes, the choice of Successor Trustee is crucial because this is the person who will take over control of the trust assets if the Grantor (creator of the trust) becomes incapacitated or passes away. In New York, a Successor Trustee steps into a fiduciary position, meaning the Trustee must act in the best interests of the trust and its beneficiaries. If you have been named as a Successor Trustee, or if you are creating a trust and considering who to appoint in that role, it is essential to understand what the job entails and how to prepare for it. With that in mind, the attorneys at Eghrari Wealth Training Firm offer a New York guide for a Successor Trustee.

Preparing Your Successor Trustee

If you are the Grantor of a trust, keep in mind that proactive planning can make an enormous difference for a Successor Trustee. With that in mind, there are several things you can do now to ease the transition later and help ensure that your chosen Trustee is equipped for the role, such as:

  • Put Together a Trustee Reference Packet: This guide is not legally required, but it can save your Trustee time and frustration when the trust must be administered. Include a concise summary of the trust’s purpose and key provisions, such as the distribution schedule and any limitations or conditions placed on beneficiaries. You may also wish to include:
    • Contact information for your legal, tax, and financial professionalsA list of all financial accounts, including account numbers and institutionsDetails of any life insurance or annuity contractsA list of recurring bills or subscriptions that may need to be canceled or managed
    • A digital inventory of online accounts, passwords, and cloud storage
  • Provide a Letter of Instructions: As the name implies, this is a letter that provides instructions or explanations not found in the trust agreement itself or elsewhere in your estate plan. Although a Letter of Instruction is also not a legal requirement and is not legally binding, it can help your Successor Trustee understand your reasoning behind specific provisions. This can be particularly important if your estate plan includes unequal distributions, delayed inheritances, or unique conditions. Providing this context can help prevent disputes among beneficiaries and give your Trustee guidance beyond what the legal documents provide.
  • Talk to Your Successor: Too often, the first time a person hears they have been named Trustee is when they are called upon to serve in the role, which can be overwhelming. By having an honest conversation now, you give that person the opportunity to ask questions, voice concerns, or decline the appointment if they are not comfortable. Talk to your chosen Trustee about why you selected them and what you hope they will accomplish.
  • Periodically Reevaluate Your Decision: Your entire estate plan should be reviewed on a routine basis, including your fiduciary appointments. A person who was a good fit for the role of Successor Trustee a decade ago may no longer be available or willing to serve. You may also experience changes in your assets or the needs of your beneficiaries that necessitate a change in your chosen Successor Trustee.

Steps for a Successor Trustee to Take Immediately

Once you assume the role of Trustee, your primary obligation is to carry out the terms of the trust. While your duties may vary depending on the type and complexity of the trust, most Successor Trustees will need to take the following steps shortly after stepping into the role of Trustee:

  1. Locate and thoroughly review the trust documents and any associated estate planning materials.
  2. Secure trust property, including real estate, investment accounts, and personal property.
  3. Notify banks, brokerage firms, life insurance companies, and government agencies of the change in Trustee.
  4. Consult with professionals such as an estate planning attorney, accountant, and financial advisor to ensure legal and financial compliance.

As you administer the trust, there are other actions you will need to take and responsibilities you must be aware of in your fiduciary role. For example, you are responsible for paying outstanding bills, taxes, and other liabilities using trust funds and keeping detailed records of all financial transactions. You are also responsible for distributing trust assets to beneficiaries according to the terms outlined in the trust and filing any necessary documents with the Surrogate’s Court.

Can We Help You Fulfill Your Role as Successor Trustee in New York?

For more information, please join us for an upcoming FREE seminar. If you would like assistance fulfilling your role as Successor Trustee in New York, contact the Long Island trust attorneys at Eghrari Wealth Training Firm by calling us at 631-265-0599 to schedule your appointment.

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About Eghrari Law Firm

Mark S. Eghrari is an attorney in private practice in Smithtown, New York. He has been in practice since 1988. Mark S. Eghrari provides extensive estate and tax planning services to individuals and businesses. Mr. Eghrari’s primary focus is helping clients avoid probate, minimize or eliminate Federal and State Estate taxes and protect their assets from the high cost of nursing care, if they become ill Read More!