Q: Quick question. Would a Letter of Agreement change the Trustee of my trust to someone I name in the follow way?
1. I'm the sole trustee and trustor of my revocable trust.
2. I read all that's needed to change the primary trustee/trustor from myself in an ammemdment stating that I appoint a new trustee and the new trustee accepts, and then both of us sign.
3. Myself and another individual made a LOA that in summary says he would become sole owner trustee/trustor of my trust immediately upon signing of the Letter of Agreement by both he and I, with a third party witness. Would that be legally binding in handing over complete control of the trust to this other party/individual?
A: Yes, all it takes is a simple writing (or letter or amendment) that states the obvious: that you’re the trustor/trustee, the trust is revocable/amendable, and you wish to resign as trustee and to appoint a new trustee to serve in your place and stead, that you do so immediately, and by your signatures below (better notarized than witnessed), the new trustee agrees to be the trustee and agrees to abide by the terms of the trust agreement. Then, you need to inform all the banks where you hold trust-owned assets of the change in trustee and you will need to record a new deed to any real estate held by the trust. Notary is not absolutely necessary as a matter of law but will be necessary when dealing with banks and the recorders office for your local county.
Deanny Lungu agrees with this answer
A: Yes, you can make that change. Please take a look at the language in your trust agreement, there are usually provisions that speak to how a current acting trustee can resign and what they need to do to appoint a new successor trustee. If the trust agreement is silent, a sound course of action would be as you suggested, to have both parties (current and to-be-appointed trustee) sign an agreement.to that effect.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
