While both roles share the same legal duties and fiduciary responsibilities, the primary difference lies in when they begin managing the trust.
Comparison at a Glance
Role | When They Manage the Trust | Relationship to Grantor |
Initial Co-Trustee (ICT) | While the Grantor is still alive and well. | Manages the trust alongside the Grantor. |
Successor Trustee | Only after the Grantor passes away or becomes incapacitated. | Steps into the Grantor's shoes to finalize the estate. |
Understanding the Roles
1. Initial Co-Trustee (ICT)
An Initial Co-Trustee is appointed to manage the trust simultaneously with the Grantor.
Joint Authority: They have the same powers and responsibilities as a single trustee.
Decision Making: Co-trustees must typically act unanimously (or by majority if there are three or more) and must be in agreement on all trust decisions.
Key Duties: Managing trust property, overseeing investments, and ensuring the trust is managed in the best interest of the beneficiaries while the Grantor is living.
2. Successor Trustee
A Successor Trustee is your "backup." They have no authority until a specific triggering event occurs (death or incapacity).
Fiduciary Duty: They have a legal obligation to hold title to assets for the benefit of all beneficiaries.
Settling the Estate: They coordinate with the Executor to pay final debts and funeral expenses.
Distribution: They follow the specific instructions in the trust to distribute assets to the named beneficiaries.
Note: Because trustees are fiduciaries, they are legally required to put the interests of the beneficiaries above their own and must provide a final trust accounting during the distribution process.