| What to do with a naughty trustee…read on:
CLIENT QUESTION:
You created my irrevocable MEDICAID trust for my home and my children are the trustees. If I remember correctly, I can change trustees if I want to at any time. Is that correct? If one of us dies then the surviving spouse can’t change the trustees? Am I misunderstanding that?
MY RESPONSE:
Unless we drafted the trust around this issue for a particular client’s needs…the following will be true:
- If you and your wife created the trust (both Grantors), then both of you will have to agree before the trustees can be changed.
- At the death of the first spouse, the surviving spouse CAN change the trustee at any time.
On the other hand, if you are the sole Grantor of the trust, then only you can change the trustees. Upon your death, if the trust continues for your spouse, then the trust may or may not allow the surviving spouse to change the trustee. It all depends on how it was drafted, and that depends on the facts and circumstances of each case.
If you are still confused, call us for a consultation.
I hope this helps. |
