change successor trustee

[jnkbell]

What is the name of your state (only U.S. law)?
California

My father has a revocable living trust. He is the only living settlor. The trust states the settlor may amend, revoke, or terminate, in whole or in part, at any time during his lifetime.

He is fully capable, physically and mentally, but is reaching a point in life where he desires help. The trust names my sister as successor trustee, POA both health and finacially, but she has realized she does not want to handle the finacial part. He is going to an assisted facility and changes are necessary. Sell his house, car, etc.

We are all in agreement to make changes that allow me to handle his finances.

Does he need to change the trust to make me successor trustee, or can it be done assigning me as POA in his financial matters?
And if it requires he change the successor trustee, does he also need to change the POA?

 

[TrustUser]

1) the trustee and the poa are separate animals, in charge of separate things.

2) the trustee manages the assets in the trust. the poa manages assets in his estate.

3) i am a trustee, as well as a poa in california. i would have your father get as much as he can into the trust. and look at the poa as only a backup, should you need it.

4) poas are not nearly as easily usable. sometimes you gotta go thru a lot of bells and whistles before the other party will accept them.

5) and quite honestly, i dont blame the other parties. they want to make sure that you cant come back and try to sue them, etc.

6) yes, he needs to change the successor trustee in his trust to be you.

7) you might make a general poa for backup. but if for some reason, something needs to be handled outside of the trust, your poa will work much better the more specific it is. so for example, if your dad has a pension plan outside of his trust, the firm that holds the pension is more apt to work with you if you present that firm with a poa that specifically is just for the pension plan. make it as short and sweet as possible. they do not want to read thru 25 pages of gobbledygook.

 

[tranquility]

If dad no longer wants to be in charge of his affairs, see an attorney. A signature or two will not solve the problem.

 

[TrustUser]

also, i forgot to add - when you have the trust and poa completed, both you and your dad should visit each of the places that handles each asset, be it a bank, brokerage company, etc.

and simply introduce yourself to them in his presence, so that they can rest assured that you are the proper person doing the job (trustee or poa). and it gives you an individual person you can talk to about the asset, should the need arise.

 

[ecmst12]

POA has nothing to do with anyone's estate. POAs are only valid for living people, they expire on death. If a POA is needed here, it would be for any assets OUTSIDE the trust, while the owner is still alive. Once death occurs, the POA expires and probate must be done. The former POA could be named executor, but it's not required, someone else could end up with that job.

 

[curb1]

You said, "Once death occurs, the POA expires and probate must be done."

Why does "probate must be done". It doesn't have to be done, does it?

 

[ecmst12]

Well, not always. But what happens to the assets (if any) and who manages them no longer has anything todo with the POA. I knew my wording wasn't ideal.

 

[curb1]

I don't know why, but I am always sensitive to the statements that seem to indicate that probate must always be started. It doesn't have to be started in many situations.

 

[LdiJ]

I don't know why, but I am always sensitive to the statements that seem to indicate that probate must always be started. It doesn't have to be started in many situations.

It doesn't have to be started if ALL assets pass outside of any estate. Even if there is some small thing that someone overlooked, its possible that probate would have to be opened. That happened to my mother when my father passed away. He had forgotten to name a beneficiary to a couple of small accounts.

 

[TrustUser]

it should have been extremely obvious that i was using "estate" to differentiate from "being in trust".

trustees manage trust assets.

poas manage assets in his estate (i.e. not in a trust).

the reason that i brought up pension plans is that it is one of the more common assets that would not be titled in the trust.

while i think it is a smart idea to have a trust as beneficiary, it still may need management while the owner of it is alive. and the firm will not talk to a beneficiary.

so while dad is still alive, and unwilling or unable to manage it, a poa naming an attorney-in-fact to deal with the firm holding the pension plan may become necessary.

 

[jnkbell]

What is the name of your state (only U.S. law)?
California

My father has a revocable living trust. He is the only living settlor. The trust states the settlor may amend, revoke, or terminate, in whole or in part, at any time during his lifetime.

He is fully capable, physically and mentally, but is reaching a point in life where he desires help. The trust names my sister as successor trustee, POA both health and finacially, but she has realized she does not want to handle the finacial part. He is going to an assisted facility and changes are necessary. Sell his house, car, etc.

We are all in agreement to make changes that allow me to handle his finances.

Does he need to change the trust to make me successor trustee, or can it be done assigning me as POA in his financial matters?
And if it requires he change the successor trustee, does he also need to change the POA?

So you all know, all assets are in the trust except for a checking acct. And he is not ready to resign as trustee, just wants some help, and my sister does not have the time nor the full knowledge of handling such things as selling a house or managing his investments, and I do.

My biggest concern was by him changing me to successor trustee did he also have to change the POA from her to I, but it would seem from your discussion they are two different animals and I can take care of his financials as successor trustee.

Thanks for the help - any further advice is welcome. Did you guys get your issue straight?

 

[TrustUser]

i am assuming that there arent a lot of funds in a checking account ?

and there are also does not seem to be any sort of trust issues ?

why not just have your dad add you as a joint account holder ? when the time comes, you can take over the job of writing checks, etc. with no need for a poa.

 

[jnkbell]

checking acct is small - just for bill paying. And I am on that account if needed.
The reason I feel such a change like becoming successor trustee or having financial POA is I went through this with my wife's parents (as some of you may remember helping a few years back), and unless my wife, who was successor trustee of their trust, was present, or me having POA, it took an act of God for someone to even listen to you let alone help.

So we are trying to avoid having my Dad or sister present when anything needs to be done, selling the house, etc.
And we are all in agreement, there are no issues.

So can we not draft a document stating my dad's wishes to assign me as successor trustee, having him and I sign and even my sister sign and notarized?

 

[LdiJ]

checking acct is small - just for bill paying. And I am on that account if needed.
The reason I feel such a change like becoming successor trustee or having financial POA is I went through this with my wife's parents (as some of you may remember helping a few years back), and unless my wife, who was successor trustee of their trust, was present, or me having POA, it took an act of God for someone to even listen to you let alone help.

So we are trying to avoid having my Dad or sister present when anything needs to be done, selling the house, etc.
And we are all in agreement, there are no issues.

So can we not draft a document stating my dad's wishes to assign me as successor trustee, having him and I sign and even my sister sign and notarized?

I think that if you want to avoid problems you are going to need an attorney to draw up new paperwork.

 

[curb1]

Why would you want to be the "successor trustee"? I think what you need to be is a co-trustee, or the trustee. The successor trustee would not do anything for you until Dad becomes incapacitated or dies, then you would become the Trustee.