Jump to content

Removing a Trustee


K-t-F

Recommended Posts

I've done this before but it was not during a restatement year.  A small plan (husband, wife, 1 employee), husband and wife are divorcing.  Can I simply prepare the Cycle 3 restatement docs and take her off as a trustee?  Or does she need to formally acknowledge and agree to no longer be a trustee in amendment form in addition to the restatement?

Thanks

Its not easy being green

Link to comment
Share on other sites

We also prepare a notification for the plan administrator to the trustee that's being removed. It is dated and signed by the PA and asks the former trustee to sign. But, it states the person is no longer a trustee the earlier of the signed acknowledgment or 31 days, whichever is earlier.

William C. Presson, ERPA, QPA, QKA
bill.presson@gmail.com
C 205.994.4070

 

Link to comment
Share on other sites

Same here - the plan doc / trust agreement will explain how trustees can be removed from either side of the agreement, possibly with that 31-day period as Bill references above.  I had one I used with Relius documents and I really only had to change the Section reference to use it with ASC documents.

 

Link to comment
Share on other sites

Beyond seeing to the plan’s and the trust’s governing documents:

Remember, a custodian, recordkeeper, or other service provider might have contract rights that allow the provider to rely on information previously furnished until the plan’s administrator or other customer delivers notice to update the information.

A person might deliver such a notice if the person prefers that the provider no longer be authorized to rely on an instruction from the to-be-removed trustee.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

Link to comment
Share on other sites

Yes. My added point is that, even if a trustee’s resignation or removal took effect, a custodian or other service provider might not be responsible for a harm that results from the provider’s good-faith reliance on the apparent authority of someone the provider does not yet know is no longer a trustee or other fiduciary.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...