Do co-trustees have to act jointly?
California trust law requires that co-trustees act unanimously. If the trust instrument provides that co-trustees do not have to act unanimously, the instrument controls. The trust instrument may allocate certain powers to specific trustees. The allocation of powers among co-trustees does not have to be equal.
What does it mean to be a co-trustee?
co-trustee. n. a trustee of a trust when there is more than one trustee serving at the same time, usually with the same powers and obligations. Occasionally a co-trustee may be a temporary fill-in, as when the original trustee is ill but recovers.
What happens if co-trustees disagree?
Under California Probate Code section 15642, if hostility or lack of cooperation among family member co-trustees impairs trust administration to the detriment of the beneficiaries, the court can end the gridlock by removing all of the co-trustees and appointing a third party to serve as sole successor trustee.
How do co-trustees work together?
When there are multiple trustees appointed to manage a trust, they are called co-trustees. A trustee manages and administers a trust, including selling and distributing trust property, and filing taxes for trust income when necessary.
Can you have 2 trustees?
Yes, you can have multiple trustees to a trust. The powers of multiple trustees should be clearly defined in the trust deed.
Can a co-trustee be removed?
Petitioning Court for Removal A petition for removal of a trustee can be filed by either a co-trustee or a beneficiary. Court removal of a trustee is a complex process, often involving conducting depositions, issuing subpoenas for records, and asking the court to order the trustee to provide an accounting.
How many trustees can you have?
It is possible to include either one corporate trustee or up to three individual trustees. A trustee can also be a beneficiary provided that it is not the sole trustee and beneficiary. If there is another trustee, or another beneficiary as well, then it is acceptable.
Do trustees have to agree?
Being a trustee can really help someone important to you. If someone asks you to be a trustee, it usually means they trust you to do the right thing for them and the people who benefit from the trust. You must agree with all of the other trustees when making trust decisions.
Does a trust need 2 trustees?
The settlor may appoint multiple trustees. Although the trustees of a trust may change, a trust must always have at least one trustee.
Can a trustee be removed without consent?
Yes, a trustee can be legally removed. California Probate Code §15642 allows a trustee to be removed in accordance with the trust instrument, by the court on its own motion, or on petition of a settlor, co-trustee, or beneficiary.
What are the responsibilities of a co trustee?
The responsibilities of a co-trustee are to manage the trust assets in accordance with the wishes of the maker as set forth in the terms of the trust. The trustees also have a fiduciary responsibility to the beneficiaries of the trust.
Do co trustees have to act together?
All trustees must act in the best interest of the beneficiaries of the trust, and doing so requires cooperation among the trustees. This is especially true when the co-trustees have to act together in order to accomplish the trust administration tasks.
Can a co trustee act alone?
The co-trustee must act in consultation with the other trustee(s), unless the language of the trust allows one co-trustee to act alone. The respective power of co-trustees depends largely on the terms of the instrument creating it.
How do co trustees work?
The most basic duty of a co-trustee is the responsible management of assets. Although the trust may instruct the trustee in how to do this, most trustees have fairly wide latitude to act, by opening and closing bank accounts, investing in stocks or other instruments, buying and selling property, and so on.
