14 sept Co Trustee Agreement
Where a concessionaire appoints several agents to manage the living trust, they are all responsible for the proper allocation of the licensor`s assets in accordance with the trust`s instructions. I have checked many trusts that prefer multiple agents who served together as « co-trustees. » You will have a language that says, « If the two [trustee] donors are unable to work or have died at any time, the co-trustees who will succeed him will be `John Doe and Jane Doe`. Most of the time, there are only two co-directors, but sometimes there are three or more. Most of the time, this is not a problem and the co-directors agree and there is no disagreement on how the trust should be managed or distributed. The question remains: what happens if they fail to reach an agreement? First, the law is premised that cartels must act together. The trust may indicate that it has the power to act independently, but if it does not, the default standard is that it must make all decisions together. This issue can and is sometimes raised in the trust, and the trust can propose solutions such as: now you find yourself in a difficult situation – legal. If you are an agent, you are bound by the standard of an agent, which means that you must act in the best interests of the beneficiaries. If all the trusts are spent, you could be sued by the beneficiaries for what they thought they should have received. To make matters worse, you weren`t even in line to inherit anything.
Come on! You`re not so flattered anymore. Imagine that your whole family is angry with you, emotionally charged with their parents` money. You receive emails with « Shame on you » and you go to the field to sit in front of the cousins with whom you were playing ball. Can`t imagine it? In this case, do not register as a trustee (or descendant) of the family army. Being an agent can be much more than people understand and certainly more than they have negotiated. A living trust should clearly indicate which assets the agent is to distribute to which beneficiaries, how and when those assets are to be distributed. For example, distribution does not necessarily have to take place immediately after the death of the licensor. Instead, the distribution could follow another event, for example. B if the beneficiary is 18 years old.
The truth is that someone has to do it, and as long as you go there with your eyes open – ask questions and fully understand what you`re doing – you can avoid as many problems as possible. Here`s the biggest problem: who will you choose for your descendant? Almost everyone who develops their estate plan will struggle over who should be designated as a descendant or personal representative (the person who will be responsible for distribution after the planner`s death) and how many people should serve in that position. In a previous blog post « Questions and Answers about Real Estate Agents, » I briefly discussed the pros and cons of why someone would only choose one to serve simultaneously or serve several at the same time. You can read it here. In this article, I would like to focus on the specific duties that co-directors have among themselves, as well as towards the trust and the beneficiaries. It is customary for people to accept the position and sit in the workplace. They do not resign or manage the trust carefully. Despite their good intentions, they will never succeed. In such a situation, this cotrust is responsible for the mismanagement of the trust.
Section 75-7-703 states: « A cotrustee shall participate in the exercise of the office of agent. [unless they have a good reason, as stated above] or have correctly delegated the performance of the function to another agent. » What are the powers of directors? It is certainly easier if investment powers are limited to investment vehicles that are FDIC insured, as is the case with many legal comparisons for young children. . . .