“Adventures of a Successor Trustee”

The Will has an Executor
The Trust has a Successor Trustee

Many people fill both roles after someone passes away: they are the executor of that person’s will, and the successor trustee of that person’s living trust.

It’s common to think most responsibilities focus on being executor of the will. Actually, the trust and being successor trustee take center stage. Here’s why:

• When there is a living trust, the will usually leaves all property to that trust. This is a “pour over” will — it automatically pours everything into the trust when the person passes away.
• That means most tasks on your plate are connected to the trust, not the will. You’ll need to know how to handle those tasks, but you don’t need to figure it out right away.

• Do keep a notebook: jot down expenditures (including small ones), to-do’s, questions, ideas, information, and concerns. Keeping a notebook has a bonus — it helps reduce stress.
• Do keep the deceased person’s cell phone and email active: you will need them for two-factor identification. Leave them open. Do not tell the provider the person has passed away.
• Do: If there is a joint account, you may want to use online banking to cut a check payable to yourself (or transfer funds). Deposit the funds in an account that allows you to keep them separate. Use the funds as needed for the person’s final expenses, trust bills, etc.
• Do not withdraw or spend recent deposits from Social Security or pensions. Keep future Social Security/pension deposits in the account, too. Otherwise, you may have to return those funds.
• Do not notify banks or credit unions that the person has passed away: wait. It is absolutely legal to wait, and many successor trustees will tell you there are very good reasons to wait (the bank or credit union is likely to freeze the account once they know the person has passed away).
• Do not use the person’s credit card, even if you have a card in your name. Using the card may be regarded as fraud. Make minimum payments. Do not pay off credit card balances for now; you may find the issuers do not expect the balances to be paid.
• Do not set an appointment with an attorney. Wait to see if you need one (most successor trustees don’t).
• Do not get an appraisal for the person’s home. Wait to see if you actually need one. If you do, the data needed will still be available.
• Breathe. You got this!

See the blog for excerpts. You may want to start with this one.