The only legal requirement in California for a person to be a trustee is that she or he is at least 18 years old and “of sound mind .” The Trustee must also be a U.S. citizen to avoid adverse tax consequences.
Can anyone be a trustee?
Who Can Be a Trustee? Anyone who is able to own property can be a trustee . This includes individuals and companies. A beneficiary of a trust can also be a trustee, but if there is only one beneficiary of a trust then that beneficiary cannot also be the trustee of that trust.
Who should be your trustee?
Depending on the type of trust you are creating, the trustee will be in charge of overseeing your assets and the assets of your loved ones. Most people choose either a friend or family member , a professional trustee such as a lawyer or an accountant, or a trust company or corporate trustee for this key role.
Can a family member be a trustee?
Usually a family member will incorporate a company to act as a Trustee , and nominates various family members as beneficiaries.
Who Cannot be appointed as trustee?
Any person who can own property may be a trustee. A minor (someone under 20) can be a trustee, but a court would have to appoint someone to act as trustee until the minor turns 20.
Can a trustee take all the money?
A trustee typically cannot take any funds from the trust for him/her/itself — although they may receive a stipend in the form of a trustee fee for the time and efforts associated with managing the trust.
Can a trustee do whatever they want?
The trustee cannot do whatever they want . They must follow the trust document, and follow the California Probate Code. More than that, Trustees don’t get the benefits of the Trust. ... The Trustee, however, will not ever receive any of the Trust assets unless the Trustee is also a beneficiary.
What a trustee Cannot do?
The trustee cannot fail to carry out the wishes and intent of the settlor and cannot act in bad faith, fail to represent the best interests of the beneficiaries at all times during the existence of the trust and fail to follow the terms of the trust. A trustee cannot fail to carry out their duties.
Can a trustee steal from a trust?
Technically, a trustee can face criminal charges for embezzlement or criminal misappropriation of property if they steal money from a trust. However, crimes stemming from theft from an estate or trust is generally considered a civil matter and are rarely prosecuted criminally.
Can a trustee also be a beneficiary?
The short answer is yes, a trustee can also be a trust beneficiary . One of the most common types of trust is the revocable living trust, which states the person’s wishes for how their assets should be distributed after they die. ... In many family trusts, the trustee is often also a beneficiary.
What is a reasonable amount for a trustee to be paid?
While professional trust companies often charge more than other trustees, compensation is usually between 0.5% and 1.5% , with the fees occasionally being up to 2% per year. It’s better to pay the trustee a flat rate rather than an hourly rate in most cases, but this is usually decided on a case-by-case basis.
Who owns the property in a trust?
The trustee controls the assets and property held in a trust on behalf of the grantor and the trust beneficiaries. In a revocable trust, the grantor acts as a trustee and retains control of the assets during their lifetime, meaning they can make any changes at their discretion.
How much do trustees get paid?
Corporate Trustees are at the top of the group, and they usually are paid a percentage of the Trust assets as Trustee’s fees. Most corporate Trustees will receive between 1% to 2%of the Trust assets . For example, a Trust that is valued at $10 million, will pay $100,000 to $200,000 annually as Trustee fees.
Can a trustee sell property in a trust?
Trustees aren’t allowed to sell trust property to themselves unless the trust agreement has explicitly allowed them to do so. They also shouldn’t sell the trust property to another trust that they manage, or borrow trust funds for personal use.
How many trustees are required for a trust?
Many Trust deeds will require a minimum number of trustees, usually at least two , acting at all times. A Trust deed may also include a requirement for at least one trustee to be independent (someone who does not have an interest in, and will not benefit from, the Trust).
Who Cannot be a beneficiary of a trust?
Section 9 of the Trusts Act– According to this section, any person who is capable of holding property may be a legal beneficiary. The beneficiary is not bound to accept the Interest under Trust.
