I’ve said a lot about things coming up when you are trying to do your job or deal with a problem. This is something that happens a lot to daddies and mommies. It’s hard enough to do a job or help your child with something without an emergency happening along the way.
Sometimes, we deal with the unpleasant news of a loved one passing away. I have written on the series of books by Pat Henning and how they can help surviving relatives navigate their way through the minefields of taxes, property maintenance, and the responsibilities that come with being the executor of the estate. In this final installment, Pat’s fourth book explains what happens if you are named successor trustee. His book, “The Successor Trustee Handbook”, will prepare you if the time comes to step into this demanding role.
The book is an effective read for the trustee and their successor. His book, “The Revocable Living Trust Handbook” talks about the duties and responsibilities of someone who is in charge of a trust. “The Successor Trustee Handbook” addresses what happens if the original trustee can no longer serve in that capacity.
Some readers may be reviewing the role in advance because they have been named as successor trustee and want to be prepared. Others may pick up this handbook only after receiving a phone call, walking into a parent’s home to sort through papers, or realizing that they now need to act.
“The Successor Trustee Handbook”
This book should be required reading for those waiting to step into the role of trustee and those who are already serving. For those who are already in the role of Trustee, the book will remind you of the benefits of consistent and accurate record keeping. For those currently on the bench, Pat’s book will help them prepare for the moment they need to step into the role.
There are reasons a trustee will need to step down from their role. They could become ill, incapacitated, they could be burnt out from the added duties, or they could die themselves. Whatever the reason, it is important the successor is prepared when this happens and the original trustee can no longer serve in this role.
Like the other books in this series, Pat talks about the importance of record keeping. This will help the trustee keep accurate records of the trust and the property in it, but it will also help them if a relative isn’t certain things are being handled in an honest way. Another important point is to focus on the tasks at hand and not be distracted by in-fighting or impatience. There will be potential heirs who will have questions about property or money. There will be conversations they “had” with other relatives that they feel will entitle them to use of a house, a car, or some jewelry. If something is meant to go into a trust, it goes into the trust and stays in the trust.
The trustee and their successor would do well to maintain thorough records. If this becomes overwhelming, it would be alright to hire a professional, an attorney, a CPA. This move could also be helpful if disagreements over property and money escalate into potential legal problems. It’s already emotional enough when dealing with a sick or dying relative. No one needs a rift in the family to make things worse.
Like Pat’s other books, this release contains bite-sized tips at the end of each chapter along with checklists to help those manage the family trust. Both of these helpful tools can help the trustee and their successor make sure they are on top of everything necessary for a well-maintained trust.
A practical trustee mindset can be summed up in four words: slow down, verify, document, then act.
Neither the trustee nor the successor should rely on memory when handling the trust. Bills and account credits will come in on an almost daily basis. In addition to their own daily life and job, these additional pieces of information can add to confusion and make it more difficult to manage the trust. The sooner information is documented and the more thorough it is, the easier it will be to manage the trust.
It is important to select a proper person for the successor. This is a duty that shouldn’t be taken lightly. Property in the trust is valuable and there are other items that could hold sentimental value. Both of these property types can make for contentious conversations between family members. Both the trustee and the successor can be caught in the middle of difficult and awkward conversations and situations. It is the trustee’s job to maintain neutrality and make sure the trust is being handled and run properly.
“Trust administration usually ends in stages, not all at once.”
If things become too confusing, it’s not cheating or a sign of defeat to hire a professional. This not only makes your job easier, but it will also show that you want what is best for the trust. If you are burnt out, ask the successor to step in. Again, this is not giving up. This is making sure the trust is getting the top care and attention possible. If you are the trustee, it is also important that you are being taken care of. If this responsibility comes at the expense of your physical or mental health, it is not worth it, and you should look to someone else to take over. This not only helps your health and sanity, but it can also be the best move for the greater good.
Patrick Herring’s series will help all members of the family when it comes to protecting assets and making sure the most secure and protective measures are being utilized. These books will not make the stress of property management and decision-making go away. There is nothing that can do that, but these books do contain the information necessary to ensure property and assets are protected and stay in the family.
