Q: What is a trustee called after the grantor dies? The trustee was also listed as a co trustee.
Living trust has stocks worth 1.5 million. The financial institution wants to divide all stocks and move into beneficiaries account. When beneficiaries sell stock do they pay capital gains from stocks original purpose or from date received forward? Or is it better to sell all stocks and distribute cash?
A:
The legal term “Trustee” is the title of the person with the right to handle assets in the trust and who must fulfill all the legal duties associated with that right. The word “Co-Trustee” means there are two people serving together as Trustees. They may have to do everything together or may have the right to work independently, depending on the language in the trust.
Once the person who set up the trust for themselves (called a Settlor or Trustor) dies, the next Trustee in line steps up to the plate. The Trustees in line behind the Settlor are called “Successor Trustees” because they succeed (serve as Trustee after) the Settlor. If there are two Successor Trustees, they are either called “Co-Successor Trustees” or “Successor Co-Trustees.”
Your distribution questions are best discussed with a CPA because there are tax implications that are very fact-specific to each situation. We would need far more information to adequately respond to questions like yours.
Best wishes!
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