New Blog 1: Resignation Of Trustee Form

Tuesday 11 December 2012

Resignation Of Trustee Form

A trustee's right to resign his position is not absolute. The trustee's resignation must be authorized by the trust document or state law, and a trustee can face civil liability for failing to fulfill his duties under the law. The appointment of a successor trustee is governed by the trust document if it contains such a provision or by state law if it does not. A trustee may resign in accordance with provisions spelled out in the trust. State laws vary somewhat concerning the resignation of a trustee in the absence of a specific procedure outlined in the trust. The Uniform Trust Code, adopted by 21 states, allows a trustee to resign on 30 days notice to the trust grantor, all qualified beneficiaries and all co-trustees. Of course, notice need not be given to the grantor if he is deceased, and notice need never be given to certain non-qualified beneficiaries, such as unborn children. Alternately, a trustee may resign at any time with the court’s approval. A court may authorize the trustee's resignation if he is ill, has filed for bankruptcy, or if he has been accused of misconduct and wishes to resign rather than face removal. A court may require a resigning trustee to account for trust property or post a bond to protect trust property. Successor Trustee Qualifications: A trustee must have reached the age of majority in the state where the : trust was created (18 in most states). He must be capable of owning and transferring property, meaning that he must not have been declared legally incompetent by a court (due to mental illness, for example). A trustee may be an individual or a legal entity such as a bank. He must accept the appointment, and he may be required to sign a trust deed or other documents. Some states require a trustee to post a bond and take an oath of office.