A well drafted trust instrument will generally prescribe the method and manner of substitution, succession, and selection of successor trustees. Such provisions must be carefully followed. A trustee may be given the power to appoint his or her own successor. Also, a trustor may reserve, or a beneficiary may be given, the power to change trustees. This form is a sample of a trustee naming a successor trustee pursuant to the terms of the trust.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Kentucky Appointment of Successor Trustee By Original Trustee Named in a Trust Agreement: In Kentucky, an Appointment of Successor Trustee is a crucial provision in a Trust Agreement that allows the original trustee to designate a new individual or entity to assume trustee roles and responsibilities in the event of their incapacity, resignation, or death. This provision ensures that the trust continues to be managed and administered properly. When creating a Trust Agreement in Kentucky, it's essential to include the Appointment of Successor Trustee clause to secure the trust's seamless transition and the continuity of its objectives. This provision allows the original trustee to have control over who will take charge in case they are no longer able to fulfill their duties. The Appointment of Successor Trustee provides flexibility to the original trustee, granting them the ability to name multiple successors, establishing a hierarchy of potential trustees. By doing so, the original trustee can ensure that if the first choice is unable or unwilling to act as the successor trustee, there is an alternate option available. It is important to note that there can be various types of Kentucky Appointment of Successor Trustee provisions in a Trust Agreement. Below are a few examples: 1. Successor Trustee by Incapacity: This type of successor trustee is appointed if the original trustee becomes incapacitated due to physical or mental disability. The Appointment of Successor Trustee clause ensures that the trust's management remains unaffected and that the designated individual or entity can step in promptly. 2. Successor Trustee by Resignation: In instances where the original trustee decides to step down voluntarily, the Appointment of Successor Trustee provision will designate a new trustee. This type allows the original trustee to maintain control over who will assume the role after their resignation. 3. Successor Trustee by Death: The Appointment of Successor Trustee provision is particularly crucial in cases where the original trustee passes away. It guarantees that a smoothly defined process is in place for selecting a responsible successor to manage and distribute the trust's assets according to the trust agreement's terms. 4. Alternate Successor Trustees: To account for unforeseen circumstances or potential conflicts of interest, the original trustee may designate alternative successor trustees. These individuals or entities will only assume the role if the primary successor trustee is unable or unwilling to serve as the trustee. Having a comprehensive Appointment of Successor Trustee clause in a Trust Agreement is crucial to protecting the interests of the trust's beneficiaries and ensuring the intended goals of the trust are carried out. By incorporating these provisions, Kentucky trusts can be adaptable and endure even during unforeseen circumstances involving the original trustee.
