K-t-F Posted July 11, 2022 Share Posted July 11, 2022 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 More sharing options...
Bill Presson Posted July 11, 2022 Share Posted July 11, 2022 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. Bri and Luke Bailey 2 William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070 Link to comment Share on other sites More sharing options...
Bri Posted July 11, 2022 Share Posted July 11, 2022 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. Luke Bailey 1 Link to comment Share on other sites More sharing options...
K-t-F Posted July 11, 2022 Author Share Posted July 11, 2022 Thanks. I guess simply removing wouldn't dot any "i's" or cross any "t's". I'll pull out the template I have. Appreciate the responses. Its not easy being green Link to comment Share on other sites More sharing options...
Peter Gulia Posted July 11, 2022 Share Posted July 11, 2022 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. Luke Bailey and Bill Presson 2 Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
Bill Presson Posted July 12, 2022 Share Posted July 12, 2022 Just to add that (I'm pretty sure) a trustee can be removed immediately and without notice if there's any concern about the safety of the assets. William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070 Link to comment Share on other sites More sharing options...
Peter Gulia Posted July 12, 2022 Share Posted July 12, 2022 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. Bill Presson 1 Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
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