Which action completes the appointment of a trustee?

Which action completes the appointment of a trustee?

• A. The trustee is named in the document
• B. The trustee accepts compensation
• C. The trustee is authorized by the court
• D. The trustee accepts trusteeship

Answer: (D)

Acceptance of the trusteeship completes the appointment. A trust instrument can name someone to serve as trustee, but authority doesn’t begin until that person consents to take on the role. When the named individual signs an acceptance (or otherwise formally agrees to act as trustee), they assume the fiduciary duties and gain the authority to manage the trust assets. Accepting compensation doesn’t establish the role, and court authorization only applies to court-appointed trustees, not to a privately named trustee. So the decisive step is the trustee’s acceptance of the trusteeship.

Acceptance of the trusteeship completes the appointment. A trust instrument can name someone to serve as trustee, but authority doesn’t begin until that person consents to take on the role. When the named individual signs an acceptance (or otherwise formally agrees to act as trustee), they assume the fiduciary duties and gain the authority to manage the trust assets. Accepting compensation doesn’t establish the role, and court authorization only applies to court-appointed trustees, not to a privately named trustee. So the decisive step is the trustee’s acceptance of the trusteeship.