Essentially, the difference between a revocable and irrevocable is that once signed into existence, the latter cannot be modified, amended, or revoked. Nonetheless, everything in life changes, which is not different in estate planning.
This way, what happens if someone needs to change the trustee of an irrevocable trust in Florida? Keep reading to find out.
Irrevocable Trusts in Florida – Understanding the Role of a Trustee
In a trust, the trust creator (referred to as the settlor or grantor) transfers the title of property to a trustee for the benefit of a third party (beneficiary). The trustee is the person appointed as a custodian for the assets held in the trust.
As a consequence, the trustee has a fiduciary duty to act only in the best interest of the property held in the trust and all its beneficiaries. Therefore, if there is a breach of fiduciary duty or the trustee fails to satisfy his/her responsibilities as defined by the trust, it is possible to remove him/her and appoint a new trustee.
How Do I Change the Trustee of an Irrevocable Trust in Florida? – The Fundamentals
The primary factor in the appointment of a trustee is designating a trustworthy person or entity. Although it may sound obvious, this simple step can avoid a set of unforeseen issues in the future, including the need to modify an irrevocable trust.
Considering the strict nature of an irrevocable trust, the ideal approach is to determine whether it might be a proper solution for your case before signing the paperwork and transferring assets to the arrangement.
Modifying an irrevocable trust depends on the provisions outlined in the trust agreement. As the document should contain all the terms governing the legal arrangement, it must provide specific instructions on how to modify the trust and which events could trigger a possible modification.
Also, it is essential to consider that the acceptability or suitability of a trustee may change over time, making the appointment of a new trustee the only way to maintain the proper administration of an irrevocable trust.
How Do I Change the Trustee of an Irrevocable Trust in Florida? – Taking a Closer Look
The first step to change the trustee of an irrevocable trust is sitting down with an expert attorney to discuss the case. Initially, it is crucial to determine whether the trust agreement provides written instructions for the replacement of a trustee.
If the document outlines how the process must be done, you can follow the written instructions to replace the trustee. However, if there are no pre-written instructions in the trust agreement, all the beneficiaries of the trust must be notified.
Modifying an existing trust requires the consent of all the beneficiaries. Although it may seem simple, cases involving disputes between interested parties are particularly difficult to deal with.
Plus, there are irrevocable trusts with unnamed beneficiaries, such as children who have not yet been born, or minor children beneficiaries, making the situation even more complex. However, if the settlor is still alive, it may be possible to remove the trustee with the guidance of an expert attorney.
Lastly, upon obtaining the consent of the beneficiaries and/or the settlor, the parties involved must file with the court to officially replace the trustee. Regardless, replacing a trustee of an irrevocable trust requires specific legal grounds; thus, make sure to consult with an experienced lawyer as soon as possible.