How Do You Resign The Role Of Trustee?

Serving as the trustee of a trust created by a client, associate or someone close to you in Woodland Hills can be an arduous task. Initially, you may have no problem taking it on out of your sense of loyalty to the trust’s settlor. Yet eventually you may get to the point where the thought of resigning the position enters into your mind. Accepting the role of trustee by no means indentures to the settlor or to his or her estate, so yes, resigning is an option. The question is how do you do it?

The answer can be found in Section 15640 of the California Probate Code. In certain cases, the settlor may stipulate in the trust instrument both how you can resign as the trustee, as well as how a replacement trustee is to be chosen. This may be something to bring up to him or her to include in the trust instrument if you have the chance to communicate with him or her when initially creating the trust.

If the trust is revocable, you simply need the consent of whomever has the power to revoke it in order to resign. In the case of an irrevocable trust, you need the consent of all of the adult beneficiaries. You may be asked to remain in the position until a replacement can be found, or the court may assign a temporary trustee to manage the trust assets while the role is being filled.

Your reasons for wanting to resign may vary, from trouble to dealing with certain beneficiaries to simply having too much on your professional and/or personal plate. You do not have to have cause to resign; rather, you only the approval of the aforementioned parties.