If you are a successor trustee, you have the crucial responsibility of stepping in to manage the trust if the existing trustee becomes unable to fulfill their obligations. This unique role might not be involved in managing the trust right now, but its responsibilities are also significant, especially if a breach of trust happens.
In these scenarios, the trustee can become subject to sanctions, mainly if their actions, misconduct or behavior harmed the trust. Additionally, you may share partial liability as the successor trustee if the following conditions exist:
- You know about the trustee’s actions and did not intervene.
- You did not exert any effort to correct the current trustee.
- You took no action to force the trustee to cover or pay for the trust’s losses caused by the breach.
Still, becoming liable may only occur depending on the situation, its details and whether you know about the trustee’s actions. Despite having an inactive role in overseeing the trust, you could also avoid these scenarios by proactively helping maintain honesty and integrity. You can take the initiative if you notice any suspicious activities involving the trusts, reaching out to appropriate people when addressing concerns.
Knowing when to get help
No matter what role you have in establishing or managing a trust, you could feel helpless when faced with legal issues that may affect the trust’s value. Fortunately, you could seek legal counsel when you need help fulfilling your responsibilities as a successor trustee or clarify misunderstandings among beneficiaries. Experienced legal insight into your situation can also help you understand your role if a breach happens, allowing you to tread the issue effectively.
