When your mother established her Trust, she ultimately named your brother the trustee because of his deep financial background and the fact that he’d already held the role for someone else in the past. You’ve always supported her decision and never questioned your brother’s intentions — that is, until your mom passed away, and your brother admitted that he may try to remove one of the beneficiaries. Not only were you caught off guard, but you couldn’t help but wonder, can a trustee remove a beneficiary from a Trust?
This is a great question. After all, a trustee’s job is to manage the Trust once the grantor has become mentally incapacitated or dies. So, it’s safe to assume they have complete control over whatever happens next. Right? Well, not exactly.
As important as the trustee role is after a loved one dies, we can tell you that such power has limitations.
Generally Speaking, a Trustee Cannot Remove a Beneficiary from a Trust
The only way a trustee could remove a beneficiary from a trust is if the trustee is also the grantor (person who established the trust). In rare circumstances a trustee could also remove a beneficiary if the grantor (in this case, your mom) included a specific provision in the Trust that allowed the trustee (in this case, your brother) to have such power. Otherwise, it’s not about what the trustee wants — it’s about facilitating the administration of the grantor’s estate according to what they want and ensuring that any bequeathed assets end up in the right hands.
That includes sticking to the chosen list of beneficiaries, which cannot change simply because the trustee potentially has an issue with them being included or feels assets should be distributed elsewhere.
As we’ve written about before, a trustee is a person you place in charge of being the legal custodian for the assets held in your Trust. This is a very important decision in your estate planning strategy, and you could easily defer to a family member, child, spouse, or trusted friend to carry out your wishes after you die or are unable to do so on your own.
The keywords in that sentence are “your wishes.” The trustee you choose has a fiduciary responsibility to follow the directions you established in the Trust to the letter. Their standard duties include but aren’t limited to the following:
• Managing and administering the finances of a Trust
• Recording expenses and income
• Distributing funds to beneficiaries
• Paying any final or ongoing bills
• Filing taxes and tax reports on any income the Trust makes
• Keeping records of other transactions
If you have any additional questions about this matter, please don’t hesitate to contact our law office in Denton, TX.
Call Caitlyn Ashley Law Today!!
None of us will know what is around every corner in life. And just thinking about the what-ifs — what if I were to die or become incapacitated tomorrow; what if my child with special needs has no one to care for her; what if all my “stuff” isn’t passed onto the right people — can be overwhelming. But having a plan that accounts for your family’s unique circumstances, puts your affairs in order, has concrete solutions to your concerns, lays out your wishes and goals, and protects your family’s future provides peace of mind for the road ahead.
Caitlyn Ashley Law in Denton, Texas, will counsel you on which documents best suit your needs and ensure they are flexible enough to meet your changing needs for years to come.
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