Appointing Additional Trustees
A trust must have at least two trustees at outset, so it would usually be the case that the settlor appoints their spouse or partner as the first additional trustee.
The trust remains valid if there are no surviving trustees:
It is important to note that if the settlor dies if there is no surviving trustee, the trust remains valid and the trust proceeds will still be paid outside the settlor's estate and free of Inheritance Tax.
However, the proceeds cannot be paid out until Probate has been granted, which could take a long time. We therefore recommend that a third trustee be appointed at the earliest opportunity.
The power to appoint further trustees then rests with either the settlor on their own, or the ongoing trustees, according to the individual trust wording.
All trustees must agree unanimously in deciding which beneficiaries may receive benefits, so the settlor should exercise great care in their choice of trustees.
Avoiding Probate Delay:
In order to avoid Probate delay, it is wise to appoint a third trustee in case of the death of both of the two original trustees.
Who to choose?
A family member or friend may be chosen as a third trustee, or a solicitor or a trust corporation.
A trustee must be at least 18 years of age, and of sound mind.
Children's Guardian?
For example, you may decide to appoint as trustee, the person you have appointed, in your will, as the guardian of your children. In many cases, this may be the ideal solution, as the guardian would not have to constantly consult another party in regard to accessing trust funds for the benefit of your children.
Solicitor?
You can also choose to appoint a solicitor as the additional trustee, however, the solicitor would be entitled to be paid fees from the trust funds for any professional trustee duties carried-out.
Sibling of existing additional trustee?
A good choice could be the sibling of the existing second trustee. For example, Stanley has a policy that pays out if he dies. He would like the money to go to his wife Sheila. Sheila has a sister, Betty.
Stanley is automatically a trustee, and he has already appointed his wife Sheila as a second trustee.
If he appoints Betty as the third trustee, then in the event of his death, his widow, Sheila, will perhaps find it a comfort to be dealing with her own sister, Betty, as surviving co-trustee.
