What is an Acceptance of Office By Trustee
An acceptance of office by a trustee is the mutual understanding that a person has with the estate that implies they will assume administrative duties after being nominated. Acceptance of office by trustee is basically a formal way of giving consent to serve as a trustee. The formal method of accepting the office by the trustee is outlined within the trust itself. After being nominated, a trustee may decline to serve but cannot decline after accepting, nor delegate the responsibility.
BREAKING DOWN Acceptance of Office By Trustee
Acceptance of office by trustee refers to a trustee, whom is a person or institution who has legal title to hold property on behalf of the recipient. They act on the behalf of the beneficiary and are allowed to make decisions based on their professional criteria and best judgment. A trustee may be aware of their nomination and informally agree to the position, but a formal acceptance of office is necessary in order to move forward with the duties of office. The acceptance of office may include official paperwork for the new trustee as well as resignation or termination paperwork for the current trustee to dissolve their duties. Oftentimes, the contract will be include all three aspects to serve as an agreement of appointment, acceptance and resignation to ensure a smooth and time-efficient transition.
Once they accept the office, many trustees serve on a voluntary basis without receiving payment for their work. Some of their duties include handling a trust's affairs, ensuring that it is solvent and well managed, and delivering the outcomes and benefits that were originally set out for the trust. Trustees also prepare reports on the trusts and make sure that the trust complies with the law, among many other responsibilities.
What Happens if an Acceptance of Office by a Trustee is Not Made?
An individual who has been nominated for the trustee but does not accept the office within a reasonable time frame may be considered as rejecting the trusteeship, even if no formal rejection is made. In some states, the precise rules for acceptance of office by a trustee can vary. A nominated trustee may also take action for the trusteeship but not formally accept it. For example, they may look into the trust property further to ensure legal adherence and liability or act to preserve the trust property if the nominated individual sends the rejection to a qualified beneficiary.