Successor Trustee

Definition - What does Successor Trustee mean?

A successor trustee is a party who assumes the responsibilities of being the trustee after the original trustee can no longer do it, due to death, disability or another reason. In the context of the law, trusts are legally binding entities and so the successor trustee must adhere to all of the terms in the trust when he or she takes over.

Justipedia explains Successor Trustee

People set up trusts in order to have a third party manage property until a further date. This could be so that the property is passed along to one's children when they come of age, or for other reasons. However, when the third party (the trustee) can no longer manage the trust, a successor trustee must be appointed. Upon appointment, the successor trustee will have all the same powers and responsibilities that the original trustee had. So, if he or she makes mistakes, then he or she could be held legally responsible for them.

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