2.  Holds legal title.  Must act in accordance with fiduciary standards.  Trustee’s legal title cannot be reached by trustee’s creditors and is not in trustee’s estate upon death.

3.  Trustee must be able to:  Take title,  Hold title, and  Transfer title to trust property.

4.  Individuals:  18 (or disabilities of minority removed), and  Competent.  Trustee may be the settlor or a beneficiary (as long as sole trustee is not sole beneficiary).

5.  Corporations  Power to act as trustee ▪ Financial institutions (no separate charter needed) ▪ Trust companies (separate charter needed) ▪ Foreign corporations if comply with Probate Code § 105A, Estates Code Chapter 505

6.  Importance  No liability until acceptance.  Blieden v. Greenspan – p. 76

7.  Methods  Signature of trustee = conclusive evidence  Exercise power or perform duty = presumption of acceptance, unless ▪ Preservation, if notice given, or ▪ Inspection.

8.  Reasons to accept:  Reasons to not accept:

9.  Trustee does not accept:  Trust instrument names alternate.  Trust instrument provides method of selecting alternate.  Court appointment upon petition of interested person.

11.  Presumption = required  Not required if:  Waived by settlor in trust (unless court nonetheless requires)  Corporate trustee

12.  Why require bond?  Why waive bond?

13.  Possible benefits:  Possible dangers:  Note: Majority may act.

14.  Follow procedure settlor provided in the trust. Otherwise,  Petition court for permission to resign.

15.  Details later when we cover trust enforcement.

16.  If no trustee remains:  Successor named by settlor.  Replacement method specified in trust.  Court may appoint on its own motion.  Court must appoint on petition of interested person.

17.  If at least one trustee remains:  Successor named by settlor.  Replacement method specified in trust.  Court will not fill vacancy.  If charitable trust, remaining trustees may fill vacancy by majority vote.

18.  Powers:  Presumption = same as original  Exceptions: ▪ Trust instrument provides otherwise. ▪ Court order provides otherwise.

19.  Substitute Fiduciary Act