A well drafted trust instrument will generally prescribe the method and manner of substitution, succession, and selection of successor trustees. Such provisions must be carefully followed. A trustee may be given the power to appoint his or her own successor. Also, a trustor may reserve, or a beneficiary may be given, the power to change trustees. This form is a sample of a resignation by the trustee prior to the appointment of a new trustee.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Wisconsin Resignation by Trustee Named in a Trust Instrument refers to the legal process by which a trustee named in a trust instrument voluntarily steps down from their position. This type of resignation can occur in various trust arrangements, including living trusts, testamentary trusts, revocable trusts, irrevocable trusts, and special needs trusts. When a trustee wishes to resign in Wisconsin, they must follow specific guidelines outlined in the trust instrument and state law. The process typically involves the following steps: 1. Reviewing the Trust Instrument: The trustee must carefully examine the trust instrument to understand the provisions related to resignation and any specific procedures or conditions set forth. 2. Notifying Beneficiaries: Wisconsin law usually requires the trustee to notify all beneficiaries of their intent to resign. This notification ensures transparency within the trust administration process and allows beneficiaries the opportunity to voice any concerns or objections. 3. Selecting a Successor Trustee: The trustee resigning from their position may identify a successor trustee, named either within the trust instrument or by discussing it with the trust creator or settler. Alternatively, the trust instrument might contain a provision outlining the process for selecting a new trustee. 4. Drafting a Resignation Letter: The resigning trustee should prepare a formal resignation letter, stating their intent to step down from their trustee responsibilities. This letter should include the effective date of the resignation and a request for approval from relevant parties if required by the trust instrument. 5. Obtaining Approvals and Consents: Depending on the trust instrument's provisions, the resignation may require the consent or approval of specific individuals or entities. This could include beneficiaries, co-trustees, or a court of competent jurisdiction. 6. Delivering the Resignation Letter: Once the resignation letter is drafted, the trustee must send it to all necessary parties as determined by the trust instrument and state law. This often includes beneficiaries, co-trustees, and the trust's legal counsel. 7. Wrapping up Trustee Duties: Until the resignation is effective, the trustee remains responsible for fulfilling their fiduciary duties, managing trust assets, and maintaining accurate records. They must ensure a smooth transition of their responsibilities to the successor trustee. It is essential for the trustee to consult with legal professionals experienced in trust administration to ensure compliance with specific Wisconsin laws and the trust instrument's provisions. By adhering to these steps, a trustee named in a trust instrument can resign from their position, allowing for a seamless transfer of responsibilities and continuation of trust administration.
