What is meant by "trustee succession"?

Trustee succession refers to the procedure for appointing a new trustee when the current trustee can no longer fulfill their duties due to reasons such as death, incapacity, resignation, or removal. This process is crucial because the trustee plays a vital role in managing and administering the trust according to its terms and ensuring the beneficiaries' interests are protected.

When a trustee succession occurs, it often involves identifying a suitable replacement who can effectively take over the responsibilities, possibly outlined in the trust document itself, or it may require court intervention if no successor is named. By having a clear succession plan, trusts can continue to operate smoothly without interruptions, which is essential for maintaining trust integrity and ensuring beneficiaries receive their intended benefits in a timely manner.

Understanding trustee succession is critical for fiduciaries and advisors, as it impacts the overall governance of the trust and can influence how trust assets are managed and distributed moving forward.