Removing Yourself as a Trustee

When a person agrees to serve as a successor trustee, it is often seen as an expression of trust and respect. However, circumstances can change, leading to a desire to step back from this responsibility. If you find yourself in a situation where you wish to be removed as a trustee of a living trust, the process can be straightforward but may require a few steps.

Your first course of action should be to communicate openly with the trust’s creator—in this case, your brother-in-law. If he has not responded to your request to consult the attorney who drafted the trust, it’s important to note that your consent is not mandatory. A successor trustee can choose not to serve, regardless of prior agreement.

It’s vital to assess whether other trustees have already been appointed by your brother-in-law. Should he not have designated alternatives, a court may intervene to name a new trustee, which could complicate the advantages that a living trust typically offers—namely, enhanced privacy and the avoidance of court proceedings.

Before finalizing your decision, consider that trustees can seek help when handling estate-related complexities. You are not obligated to manage these financial intricacies alone; utilizing estate resources to hire professional assistance is advisable, especially in complicated situations.

Social Security Benefits for Spouses

With the recent enactment of the Social Security Fairness Act, many individuals who previously faced reductions or eliminations of their benefits due to pension income are now eligible for spousal benefits. If your husband worked in a job where he didn’t contribute to Social Security, he may be able to receive a share of your Social Security benefits.

For husbands who are at least 62 years old and whose wives have begun receiving Social Security, they can now claim spousal benefits based on their spouse’s earnings record. The changes from the Fairness Act mean that any past limitations due to the windfall elimination provision and government pension offset will no longer apply. Those affected will see adjusted benefits or receive them for the first time, alongside retroactive payments reflecting these increases.

The adjustments and retroactive payments are being applied by the Social Security Administration, with many recipients expected to see these changes implemented by April 2024.

Impact of Retirement Accounts on Survivor Benefits

For individuals coping with the loss of a spouse, financial concerns often arise, especially when considering survivor benefits from Social Security. If you are the beneficiary of your husband’s retirement accounts, it is crucial to understand how these assets might interact with your benefits.

In the case where you have inherited two IRAs—one naming you as a primary beneficiary and the other unnamed—you have the flexibility to treat the named IRA as your own, allowing you to defer withdrawals. The second account must be drained within five years according to IRS rules.

It’s important to note that while withdrawals from this second IRA will count as taxable income, they do not directly influence your eligibility for Social Security survivor benefits. Generally, Social Security benefits can be deducted if you earn over a specified threshold before reaching full retirement age, but withdrawals from retirement accounts are not considered “earned income” under this test.