Definition:

A person or entity, such as a bank or trust company, that is named to take over the administration of a trust if the original Trustee is unable to continue to manage the trust property for any reason.

The duties of a successor Trustee will vary based on who are the beneficiaries of the trust, the terms of the trust, and what types of assets are held in the trust. For example, if the trust is a Revocable Living Trust that holds a bank account and the original Trustee of the trust, who is the Trustmaker and the beneficiary of the trust, has become incapacitated, then the successor Trustee can use the bank account to pay the Trustmaker's/beneficiary's bills.

Or if given the same facts and the trust holds a rental home, then the successor Trustee will become responsible for collecting the rent and paying for the maintenance and upkeep on the property.

A successor Trustee should be chosen very carefully since a Trustee is a "fiduciary" and held to a high standard of conduct. In other words, a successor Trustee must be impartial, put all personal feelings aside, and administer the trust for the benefit of all of the trust's beneficiaries in accordance with the guidelines written in the trust agreement. Otherwise the successor Trustee may get into trouble and be removed and surcharged for breaching its fiduciary duty.

Also Known As: Fiduciary