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How much power does a successor trustee have?

The Original Trustee. You will be the original trustee of your living trust. As trustee, you will have complete control over the property that will be held in the trust. As a day-to-day, practical matter, it makes little difference that your property is now held in trust.

What is an original trustee?

Being a trustee is like any other job, in that earning compensation means that you pay taxes on it. Although trustee fees can be deducted as an expense on the trusts tax returns, the trustee will still have to pay taxes on the income they earn if they opt to collect trustee fees.

Is a successor trustee the same as a trustee?

Usually, a Successor Trustee cannot change the terms of the Trust but must manage and distribute the Trust assets as specified in the Trust Agreement. Some very important things to remember as Successor Trustee are: Keep your personal assets separate from the Trust assets.

What is the difference between original trustee and successor trustee?

A trustee, who can either be the trustor or another responsible party, may be appointed while the trustor is still alive; a successor trustee is charged with administering a trust after the trustor or the appointed trustee (if they are different from the trustor) becomes incapacitated or dies.

What is the difference between a trustee and a grantor?

The person who creates the trust is called the grantor, and the person they appoint to manage their trust after they die or become incapacitated is called the successor trustee.