EST2508. Risk Mitigation Strategies for Successor Trustees: Insights and Expert Witness Stories

Being a successor trustee can be challenging. Most settlors prefer to name a non-professional—typically a family member or friend—as the successor trustee. Unfortunately, many of these successor trustees lack the time, interest, or training to manage the complex responsibilities of trust administration. Due to their unfamiliarity with the role, successor trustees face a high risk of making mistakes and exposing themselves to personal liability. This session explores key risk mitigation strategies that, if adopted, can significantly reduce the risks associated with trust administration.

Key takeaways:
• Identify key risk areas for the successor trustee.
• Rules of thumb regarding trustee compensation.
• Understanding that the annual account is not a court accounting.
• UPIA matters: Manager selection, delegation, and monitoring.
• When to use NOPA.

Learning Objectives:

• Identify key risk areas for the successor trustee.
• Assess key rules of thumb for trustee compensation.
• Differentiate between an annual account and a court accounting.
• Evaluate the effectiveness of manager selection, delegation, and monitoring according to UPIA standards.