How Do I Change the Trustee of My Trust?

Full question:

I have a trust drawn up by my late husband who passed away 2007. His trust was transferred into a trust for myself. Donna Smith Revocable Living Trust. In the trust is the home that I still own in Oregon (rented now) and a piece of land in Oregon. Before he died, he had the atty change the deed to both of our names and then of course I inhereited it when he died. I have since moved back to St, Louis, MO for good and I need to delete my daughter as the trustee and executor of my trust and put my other daughter in her place and leave my son in it as well. Right now, if I died, the first daughter would be in charge of my trust which I don't want nor do I want her to be in the trust at all. I want my second daughter to be trustee/executor and 50/50 between one daughter and one son. I am now in Missouri - I still have my trust with my old attory in oregon. I am trying to do this as simply as possible and not spend a lot of money to accomplish this. I am 58 years old, widowed and trying to stay retired & I do not want to use the atty anymore anyway and since I have a copy of the trust for right now that is satisfactory. I have a will also, all my funds are POD's etc and basically just the house and land property is what is left in the trust. What would you recommend I do to get away from paying a large atty fee to change my trust? Thank you in advance - and if I do need an atty in missouri, how do I go about getting a nice one that is reasonable price wise as well?How do you know who to trust? Sincerely,Donna Smith

Category: Trusts
Date: 04/07/2025
State: Missouri

Answer:

A Last Will and Testament Form with All Property to Trust (Pour Over Will) assumes that a living trust has already been established. This will is one made in conjunction with a trust in which all property is designated to be distributed or managed upon the death of the person whose possessions are in trust, leaving all property to the trust. A pour over will is a safety measure designed to protect any assets which somehow were not included in the trust and make them assets of the trust upon the party's death. A pour over will often provides that if the trust is invalid in whole or in part, the distribution under the will must be made under the same terms as stated in the invalid trust.

If the trust is a pourover trust and you wish to remove the daughter as executor, it may be necessary to draft a new will. Word of mouth referrals may be valuable in locating an attorney. Where it is important to change the succession of trustees, one should first look to the trust document, which may contain a provision permitting a current trustee or the beneficiaries or some other person to revise the trustee succession as stated in the document. If that flexibility is not present in the document, then the problem may be solvable through an agreement among the interested parties or through court approval.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What rights do trust beneficiaries have in Oregon?

In Oregon, trust beneficiaries have the right to receive information about the trust, including its terms and the trust's financial status. They can request an accounting of the trust's assets and income. Beneficiaries also have the right to enforce the terms of the trust and to challenge any actions taken by the trustee that they believe are not in accordance with the trust's provisions. If a beneficiary feels their rights are being violated, they may seek legal recourse to protect their interests.

Is an irrevocable trust subject to the 5-year rule?

Yes, an irrevocable trust can be subject to the 5-year lookback rule, especially when it comes to Medicaid eligibility. This rule requires that any assets transferred into an irrevocable trust within five years of applying for Medicaid may be counted against eligibility. It's essential to consult with a legal professional to understand how this rule applies to your specific situation and to plan accordingly.

What is the 5-year rule for trusts?

The 5-year rule for trusts generally refers to the Medicaid lookback period, which is a timeframe during which any asset transfers made to a trust may affect eligibility for Medicaid benefits. If assets are transferred to a trust within five years of applying for Medicaid, those assets may be considered available for determining eligibility, potentially resulting in a penalty period before benefits are received.

What is the biggest mistake parents make when setting up a trust fund?

One of the biggest mistakes parents make when setting up a trust fund is failing to clearly define the terms and conditions of the trust. This can lead to confusion among beneficiaries and potential disputes. Additionally, not updating the trust as family circumstances change, such as births, deaths, or changes in relationships, can create issues. It's crucial to regularly review and amend the trust to reflect current intentions.

What is the 120 day rule for trusts?

The 120-day rule typically refers to a timeframe in which a trustee must notify beneficiaries of the trust after the trustor's death. In many states, trustees are required to inform beneficiaries within 120 days about their interest in the trust and provide relevant information. This ensures beneficiaries are aware of their rights and the trust's status, allowing them to take necessary actions if needed.

How do you avoid the 5-year lookback rule?

To avoid the 5-year lookback rule, individuals can consider strategies such as spending down assets on allowable expenses, creating exempt assets, or using certain types of trusts that do not count against Medicaid eligibility. However, these strategies can be complex, and it's advisable to consult with a qualified attorney who specializes in elder law or estate planning to develop a plan that fits your situation.