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When must a trustee serve a notice?

On Behalf of | Nov 17, 2021 | Trusts

If you are the trustee of a trust, you have a serious responsibility to everyone associated with the trust. In some cases, part of your administration duties is to ensure you keep everyone aware of any changes or details of the trust.

California Legislative Information explains that there are certain events that may occur that require you to serve a notice under the law.

Change of trustee

If you will no longer act as the trustee to an irrevocable trust, you must ensure you give notice to all associated individuals. You should note that serving the notice is the responsibility of the new trustee, but you can do it prior to leaving the position.

Power of appointment

If a settlor secures a power of appointment on a trust that is irrevocable, then you must serve a notice. This applies to an inter vivos trust and does not apply to charitable trusts. You must also serve a notice if a power of appointment lapses due to a settlor’s death.

Irrevocable status change

You must serve a notice when a revocable trust becomes irrevocable in whole or part. This would happen when one of the settlers dies or due to terms outlined in the agreement. Note that a trust becomes irrevocable within one year after a settlor’s death.

Serving notice as a trustee is only one of your many duties, but it is important. By serving a notice, you ensure everyone who has an interest in the trust stays on top of changes and details concerning the trust. It helps to ensure transparency and prevent future issues.