Serving as a trustee of a Special Needs Trust (SNT) is a significant responsibility. Trustees are tasked with managing trust assets, filing tax returns, responding to beneficiary requests, and maintaining accurate records for all trust transactions. Over time, these duties can become overwhelming, especially for individuals who are not professional fiduciaries. If you are a trustee in Montgomery County, Philadelphia County, or Bucks County, Pennsylvania, and serving as trustee has just become too much, our lawyers can help facilitate a smooth transition to a qualified replacement trustee.
Understanding Trustee Resignation
Trustees may resign for a variety of reasons, including personal health, time constraints, or a desire to transfer responsibility to a professional trustee or trust company. However, resigning from a Special Needs Trust is not always as simple as submitting a letter. Depending on the terms of the trust document and the circumstances, court approval may be required or advisable, particularly if you are interested in securing a discharge from personal liability.
When Court Approval is Advisable
In many cases, especially when the trust was established by court order or when the trust document does not clearly outline a successor trustee, it is prudent to seek court approval for the resignation and appointment of a new trustee. This ensures transparency, protects the interests of the beneficiary, and provides legal authority for the transition.
Appointing a Successor Trustee
Gerhard & Gerhard, P.C. can assist in identifying and appointing a suitable successor trustee, whether it be a trusted family member, a professional fiduciary, or a trust company. We prepare and file the necessary legal documents to petition the court, if needed, and ensure a smooth transition of trustee responsibilities.
Legal Fees as Trust Expenses
Many trustees are concerned about the cost of legal assistance. It is important to know that reasonable legal fees incurred in the administration of a Special Needs Trust, including those related to trustee resignation and court petitions, are typically permissible trust expenses. This means the trust can pay for the legal services required to secure your replacement.
Ready to secure your replacement?
If you are ready to step down as trustee or need help appointing a successor trustee, contact us today to schedule a consultation. The attorneys at Gerhard & Gerhard, P.C. are here to help. Click here to contact Gerhard & Gerhard, P.C. and schedule a consultation today.
