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Can you have 2 trustees of a trust?
Trusts in California can have multiple trustees, not limited to merely two. California trust law requires that co-trustees act unanimously. When co-trustees cannot agree with regard to a decision, they may seek guidance from the Court by filing a petition for instructions.
Can I have more than one trustee?
There is no limit to the number of trustees a grantor can name in a trust. There are, however, practical considerations involved with naming trustees, such as experience in trust administration, trust tax, knowledge of the trust grantor’s wishes and issues that can arise when naming an individual person as trustee.
Is it better to have one or two trustees?
When there are two trustees that cannot agree with each other, important decisions could end up in a deadlock. If you feel that it is important to include more than one trustee in your trust, consider naming three instead of two so that decisions can be made by a majority vote.
How many trustees should you have?
Choose people you can rely on to be your trustees and make sure they’re happy to take on this responsibility. You should have at least two trustees but can choose up to four.
How many trustee can be in a trust?
While there’s no limit to how many trustees one trust can have, it might be beneficial to keep the number low. Here are a few reasons why: Potential disagreements among trustees. The more trustees you name, the greater the chance they’ll have different ideas about how your trust should be managed.
Can a co-trustee act alone?
Can a co-trustee act alone? The answer to this is No unless the Trust document states otherwise. In the case where the Trust does not explicitly state, the trustee and the co-trustee should make all decisions unanimously to push the trust administration process forward.
Can one trustee act alone?
Worse yet, under the default rules of California Trust law, co-trustees must act unanimously if they are to act at all. This means that one Trustee cannot simply break a deadlock by acting on his own. One of the Co-Trustees does not have the power and authority to act alone.
Can a trustee be a beneficiary?
They must hold or use it for the beneficiaries. Both the settlor and/or beneficiary can be a trustee, however if a beneficiary is a trustee it could lead to a conflict of interest – especially when trustees have the power to decide by how much each beneficiary can benefit.
Why do you need two trustees?
So having two people appointed reduces the chances of there being no Trustee to act. The second reason is because if the Trust contains property as an “Asset of the Trust” then there is a legal requirement that at least two Trustees act to deal with the legal ownership of the property.
Can I refuse to be a trustee in a will?
A person cannot be forced to take on the role of a trustee. For this reason it is a good idea before appointing a trustee to check whether the trustee of your choice would be willing and able to take on the role.
Who can act as a trustee?
Who can be a trustee? A trustee, the person who manages the money and assets in a trust, can be almost anyone. A grantor appoints a trustee when they create the trust. In many cases, the person who creates a revocable living trust, also known as the grantor, settlor, or trustor serves as trustee.
What is the 65 day rule for trusts?
The 65-Day Rule allows fiduciaries to make distributions within 65 days of the new tax year. This year, that date is March 6, 2021. Up until this date, fiduciaries can elect to treat the distribution as though it was made on the last day of 2020.