When Does a Successor Trustee Step In?

A trustee may be paid, but not always. Some trustees are trusted family members who serve without payment, especially if they only step in after someone dies or becomes incapacitated. If payment is allowed, it is usually controlled by the trust document and paid from trust assets.

Distributions happen when the trustee gives trust money or property to beneficiaries. The trustee must follow the trust terms, which may say when distributions happen, how much can be distributed, and whether the trustee has discretion to approve, delay, or deny a request.

Trust administration lasts as long as the trust requires. Some trusts are wrapped up after assets are distributed, while others continue for years or even generations. The timeline depends on the trust terms, the assets, the beneficiaries, and the purpose of the trust.

A trustee manages the trust and follows the trust instructions. That may include protecting trust property, keeping records, communicating with beneficiaries, paying trust expenses, making distributions, and making decisions the trust gives the trustee authority to make.

Trust administration costs are usually paid from trust assets. These may include legal help, accounting, tax preparation, property expenses, appraisals, trustee fees, and other costs needed to properly manage the trust.