Trustee Succession Plan

A Trustee Succession Plan is a strategic document that outlines the procedures and provisions for appointing new trustees to manage a trust when the current trustee is unable or unwilling to continue in that role. This plan ensures the smooth transition of responsibilities to maintain the trust’s administration without interruption.

The Trustee Succession Plan typically includes the identification of successor trustees, which may be individuals or institutions, and the criteria for their selection. It may also outline the steps to be taken in the event of a trustee’s incapacity, resignation, or death. By having a clearly defined succession plan, trust creators (or grantors) can ensure that their wishes are honored and that the beneficiaries’ interests are protected.

For example, a trust creator might designate their eldest child as the primary trustee and name their attorney or another trusted family member as the successor trustee. Should the primary trustee become incapacitated, the succession plan would allow the successor trustee to step in and assume the responsibilities of managing the trust assets according to the terms outlined in the trust document.

In Texas, including areas like Houston, having a Trustee Succession Plan is particularly important due to the state’s probate laws and regulations that govern the administration of trusts. Failure to establish such a plan could lead to complications, including court intervention to appoint a new trustee, which can delay the distribution of assets and create additional expenses.