Have you ever wondered what it's like to be an irrevocable trust trustee?
Taking on the role of an irrevocable trust trustee comes with its advantages, and it's important to understand what they are. Let's explore the world of being an irrevocable trust trustee together.
Who Can Be an Express Trust Trustee?
First of all, anyone who can legally own or hold property can be an irrevocable trust trustee, provided they meet the age requirement (usually 18 years old). When selecting a trustee, it's usually wise to choose a trusted friend, neighbor, or even yourself.
It is important to note that in order to pass the control test, the grantor (person creating the trust) and the trustee(s) cannot be too closely connected or related to each other (i.e. boyfriend/girlfriend, in-laws, or blood relative). Having at least two trustees is recommended so that important decisions can be made with unanimous agreement.
Can There Be Multiple Irrevocable Trust Trustees?
Absolutely! You need at least one person as the Head Trustee, but having a minimum of two trustees is a good idea. There's no set limit on the number of trustees you can have in one trust. Just keep in mind that certain decisions may require a unanimous vote, so having 2 to 3 irrevocable trust trustees should be more than enough.
It's also worth noting there are no strict character requirements for a trustee. As long as they are capable of carrying out their duties honestly, they can serve as a trustee. Our "Bulletproof Trust Secrets" program can assist you in setting up your trusts and becoming a capable irrevocable trust trustee quickly.
Some of the Powers of an Irrevocable Trust Trustee
As an irrevocable trust trustee, you have significant powers to manage the trust, following the trust instrument and equity. Some of these powers include the ability to make contracts on behalf of the trust, make decisions about trust property like selling or leasing it, handle trust-held securities, support beneficiaries, initiate legal actions for the trust, and make gifts from trust property.
Along with these powers, trustees enjoy various other privileges and rights, including the right to receive full compensation and reimbursement for expenses, the privilege to reside within the trust estate, the ability to seek legal advice for trust administration, the right to ask for court guidance, the opportunity to engage in business for the benefit of the trust, compensation for time spent as a trustee, protection from being forced to reveal trust records, and the option to decline or resign from the trustee position.
Additionally, as an irrevocable trust trustee, you generally won't be held responsible for contracts with limited liability, trust debts where creditors can only seek payment from the trust, actions of co-trustees that were unforeseeable and had no prior knowledge, actions of trustee's agents that were properly contracted, income taxes of the trust, or lawsuits against the trust.
Being an irrevocable trust trustee comes with many powers and privileges. However, it's important to remember that with every power comes responsibility. It's worth considering appointing yourself as the Head Trustee or someone you trust with strong organizational and management skills. So, are you ready to take on the role of an irrevocable trust trustee? If so, click the button below to learn more.
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