How do trustees take over?
Well, the trust has instructions to basically set up an order of succession, and typically there will be a definition in the trust as to when some would be considered disabled or incapacitated, that definition is typically when, in the opinion of two physicians, or in the opinion of one physician and the person who maintains or holds the decision making power on someone s health care. When those two people have determined that the person who has made the trust is incapacitated, then the next trustee will take over. That circumstance becomes a much smoother transition than what otherwise might be expected under a power of attorney.
Going to a bank and simply presenting the letter from the trustee, the letter from the physician, the letter from the person who holds the health care power, indicating that the person who created the trust is not able to manage his or her affairs, is relatively simple process and banks and financial institution will simply add the successive trustees. It is a process and part akin to what happens in a company or a corporation when the company president is authorized to sign checks, or the company secretary or the treasury is authorized to sign checks, if there is a new treasurer appointed, then all the company has to do is present the bank with the authorization of the company s charter or 1:38 of the companies, by laws to indicate that the treasurer will then be the person signing the checks and an indication of a new person, whatever the name of that person might be, being a new treasurer of the company. So the transfer of the power to control assets in the circumstance of disability becomes a rather simple process.
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