We are currently trying to set up a trust, and are co-trustee with a trust corporation. The trust corporation and myself are co-trustees. Ou...

Question

We are currently trying to set up a trust, and are co-trustee with a trust corporation. The trust corporation and myself are co-trustees. Our current trust reads under the Trustee Succession article, in the Corporate Trustee Substitution paragraph, that "a corporate trustee may be removed at any time by an instrument signed by a majority of the income beneficiaries but only if, on or before the effective date of removal, a qualified corporation has been appointed corporate trustee in the same manner." What are the financial and legal consequences, if any, of removing the original trust company?

Answer

Is this a Revocable Trust of of which you are the trustor/settlor/grantor? If so, there should be a provision in the trust that allows you to amend or revoke the trust at any time during your life/capacity. I would need to see the entire document to properly counsel you on this.

If you would like a review of your existing documents at no cost to you, please feel free to contact me at your convenience.

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Answer

The only way to properly answer such a question is by reviewing the actual trust documents and the entire situation. If you are in the process of setting up the trust, then I presume you have an attorney drafting the trust for you and these would be the types of questions best addressed by the attorney hired to prepare the documents.