What to do if a trustee becomes incapacitated
19 May What to Do If a Trustee Becomes Incapacitated
Posted at 06:51h
Living Trusts
When setting up a living will, you name a trustee to carry out the wishes of your trust and manage your assets. What if this person is no longer able to fulfill their duties? A person’s illness, injury or cognitive decline may prevent them from being your successor trustee. Estate planning is about preparing for the worst-case scenario. It’s something no one wants to think about, but it’s a necessary part of life. We explain what happens when a trustee is incapacitated and how to prepare ahead to avoid any complications. What Happens When A Trustee Cannot Fulfill Their Duties
If a trustee becomes mentally or physically incapable of continuing, the trust does not dissolve. Someone else must step in, and quickly. It is important to name an alternate successor trustee. A well-written trust should already have a backup in place.
Your living trust documents should include:
Often, this means a written diagnosis or certification from one or more licensed physicians. Instructions for Naming Successors
The document should name or specify alternate trustees, and explain the process of their appointment.
Without the language, things could get complicated and end up in court. When does an alternate trustee take over?
- An alternative trustee may take over when the
original trustee
cannot serve due to incapacity or resignation. Once they have officially been appointed as trustee, they will take over all of a successor trustee’s responsibilities, including:
Managing and distributing trust assets
Communicating with beneficiariesPaying bills or taxes associated with the trustHandling investments or real estate
- Keeping records of transactions and decisions
- Following all the terms outlined in the trust
- The transition can be smooth or rocky, depending on how the trust was written. If the language is vague or outdated, or if there’s a disagreement between family members, it can cause delays and conflicts.
- Can a Successor Trustee Be Removed?
- Yes, a trustee who is unable to fulfill their duties can be removed. You’ll need to include the terms of the trust in order to be able remove a trustee for incapacity. Some grantors give the decision to a group or “
- trust protector
“. Some grantors require a doctor to confirm the decision, while others may require a court order or petition. This can be a stressful and time-consuming process for your loved ones. That’s why proactive planning is the best option. What Happens if There Is No Successor Trustees Named?
If there is no successor named, or if you have appointed someone who is unwilling to serve
then the court will step in and appoint a new trustee. This could be someone from your family, a professional fiduciary or even a financial organization. It’s better to select several alternates in advance so that you can maintain control over your legacy. Some grantors choose to name co-trustees so that there’s always someone available to manage the trust, even if one person becomes incapacitated or passes away.
Let’s Make Sure Your Trust Has a Backup Plan
A solid estate plan needs to be functional, no matter what happens. This means planning for all circumstances, including the incapacitation or death of a trustee. Contact us
to set up an appointment and ensure that your estate plan will be solid no matter what happens. Photo by Balazs Simon on Pexels
used with permission under the creative commons license for commercial use 05/19/2025
