What is Acceptance of Office By Trustee?
What is Acceptance of Office By Trustee?
A customizable document helpful in accepting an appointment as a trustee of a revocable/irrevocable trust in any US jurisdiction. The mutual agreement implying that a person an estate nominates will take over its administrative duties; a formal means to give consent to such a nominee to serve as the estate trustee.
How Acceptance of Office by Trustee Works
Essentially, a trustee is either a person or institution that an estate grants a legal mandate to manage a piece of property on behalf of a client. A trustee serves on behalf of a beneficiary and can make decisions based on their best judgment and professional criteria. While a trustee may know about their nomination and agree (informally) to assume the mandate, it's still necessary to institute a formal acceptance of office before commencing this office's functions and duties.
The channel of acceptance of office usually demands that a new trustee signs the official paperwork alongside the termination or resignation paperwork for the outgoing trustee’s dissolution of duty. Such a contract may include three simultaneous aspects; an appointment or official agreement, acceptance of office, and resignation. This type of contract generally ensures a time-efficient and smooth transition.
The trust document itself usually outlines- within its articles- the formal method of acceptance of office. After the nomination, a trustee is always free to decline an appointment or accept to serve. He cannot, however, accept and later decline or decide to delegate the officially-assumed responsibility.
Example of Acceptance of Office by Trustee
Frank Taylor received an appointment to serve as the Solo Estate trustee. As part of the acceptance of office, the current administrators served Frank with a comprehensive document that they expected him to sign.
The document contained detailed information relating to the trust. This includes the name of the trust, an article (existing within the trust) that names the legal successor, the date of creation of the document and the date of death, and the name of the institution' creating the trust. It also included the date the appearance was made and space for the new trustee (Frank) to append his signature. Since every detail was in the right order, Frank signed the acceptance of office form, formally becoming the new trustee.
Significance of Acceptance of Office By Trustee
The executor or female executrix takes charge of managing the estate affairs. The person’s role is crucial in settling the estate (filing the deceased person’s final tax returns and initiating court procedures).
The trustee, once officially-appointed, effectively assumes the legal owner of the trust asset’s role. Thus, he’s responsible for tax filings, handling the assets held in trust, distributing these assets according to the trust terms.
The trustee's role involves legally-required duties. If you are a beneficiary and feel you can't carry out such roles effectively, you can hire a professional to assist. Alternatively, you can step down, thus allowing another person to take over the tasks. You may consult a tax advisor or an attorney for help.