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substitute trustee

   Also found in: Acronyms 0.01 sec.
substitute trustee

The naming of a successor trustee under a deed of trust for real property. Typically, the lender does not name a substitute trustee until immediately before foreclosure. A review of local real estate records for substitute trustee filings may give advance notice of opportunities to invest in foreclosure properties.



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If individuals are named, who will serve as successor or substitute trustee if the original trustee is unable to serve?
The creator (settlor) of the trust can elect to serve as trustee, saving administrative fees, while designating a substitute trustee, often a financial institution, to serve upon the incapacity or death of the creator.
The IRS ruled that it was irrelevant that the substitute trustees were close relatives of the disclaimant.
 
 
 
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