Legal Question in Wills and Trusts in New Jersey

Trusteeship

A relative named a bank as trustee of her trust & another relative as executor of her estate - the executor would like to change the trustee to another bank or trust company

What are the laws/regulations governing this?


Asked on 11/21/06, 11:24 am

2 Answers from Attorneys

Jonathan Chester The Law Office of Jonathan S. Chester, Esq., LLC

Re: Trusteeship

I'll need more information to answer your question.

I will need to see both the trust agreement and the will to see if there are provisions that would allow removal and replacement of trustees. If the relative is alive (you don't say) then if the trut is 'revocable' your relative can simply change the trustee. If the relative is dead, it will depend on what he trust agreement says...if there is no removal/replacement language, the bank can not be replaced just because the executor wants to replace them... unless the bank agrees to step-aside or there are grounds for removal (it does not sound like either would apply here).

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Answered on 11/21/06, 11:35 am
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: Trusteeship

The actual language of the the Trust Agreement controls. Presuming the Grantor of the trust is dead, if the Trust document does not provide for changing the Trustee, the Executor, unless also a beneficiary, has no ability to take court action to replace the Trustee. The beneficiaries should contact an estate attorney and have the trust agreement reviewed.

I have more information about estate planning and trusts at www.saveyourestate.com

I hope this helps!

Ron Cappuccio

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Answered on 11/22/06, 11:35 pm


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