The Duties Surrounding a Trustee’s Resignation
Consider the following situation: Your client resigned as trustee of a trust by providing the appropriate notice required by the trust agreement. Months have elapsed since notice was delivered, and a successor trustee has yet to be appointed, leaving your client still in custody of the assets and awaiting further instruction. Your client informs you that they’ve received a capital call in connection with a trust asset and that a prompt determination is needed on how to proceed.
While such conversations aren’t an everyday occurrence for most advisors, when this question is raised, the potential consequences of a misstep can be material. The period between submitting a resignation and transferring the trust to a successor trustee is a trans…
