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Valid forms of Resignation of Successor Trustee
Anonymous2 views2 answers
My mother passed a month ago. Her Revocable Living Trust appoints my brother as Successor Trustee and in the event he is unable or unwilling, then I as Successor Trustee. My brother has sent an email to all the beneficiaries stating he is resigning as Successor Trustee. The email includes a lot of extraneous information. The Trust document says the following: "Any Trustee hereunder shall have the right to resign at any time by giving thirty (30) days written notice to Grantor or to the income Beneficiaries of the Trust Estate after Grantors' death'.
It also states: "A Trustee or Co-Trustee may resign at any time by an instrument in writing delivered to the remaining Trustee"
Is the email legally sufficient? This is an explosive situation. I wish to protect the Trust
Michael Raymond DaymudeLitigation LawyerSherman Oaks, CA ·
1) An email is insufficient. It must be in letter form, written on paper, and signed by the resigning trustee in his capacity as trustee; 2) There is ambiguity in that you are a successor trustee, not a remaining trustee or co-trustee. Therefore, your brother must comply with the first requirement, i.e., give 30 days written notice as mentioned in "1" to all income beneficiaries.
If there are no income beneficiaries there is an issue too, however notice to all beneficiaries should be sufficient compliance. You, as successor trustee, must then accept trusteeship.
BTW, if your brother never acted as trustee, he could simply give written notice of his declination to act. I strongly suggest you retain counsel to help you. It is your fiduciary obligation. Payment of your attorney and accounting expenses will be made from the trust. Good luck.
Hi,
Sorry to hear about this explosive situation. If you are the next named successor trustee, you can retain counsel to assist you with taking over the trust and preparing a resignation form for your brother to sign to formally resign as trustee. If he signs this, then it would be effective. The 30 day waiting/notice period could be waived so that the successor trustee after your brother could take over.
If your brother refuses to sign anything further, the successor trustee after him can petition court approval for the trustee. There may be other provisions in the trust that may be helpful in this situation.
Bring the trust and any other documents including the email to an attorney to give you a consult on this matter.
