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Serving as a cotrustee in Georgia: unanimity, delegation and liability

Two trustees are one office with two signatures. This guide explains what the Georgia Trust Code generally says about cotrustees — how they act, what one answers for when the other errs, what happens when one leaves, and how a trust director changes the picture.

Le texte intégral de ce guide est en anglais ; le résumé ci-dessus est dans votre langue. Les résumés des lois et l'anglais restent la source de référence.

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Unanimity

A power vested in two or more trustees is exercised only by their unanimous action; a cotrustee may delegate to one or more other cotrustees the performance of ministerial acts (O.C.G.A. § 53-12-204(1)). Georgia has no majority rule, unlike the Uniform Trust Code states: a decision one cotrustee takes alone is not the trust's unless the instrument says otherwise (§ 53-12-7). Where a vacancy occurs in a cotrustee's office, the remaining cotrustees may act unless or until it is filled, and while a cotrustee is unable to act because of inaccessibility, illness or other temporary incapacity, the remaining cotrustees act when necessary to accomplish the trust's purposes (§ 53-12-204(2), (3)).

Liability for a cotrustee's breach

A trustee is liable to the beneficiary for a breach a cotrustee committed if the trustee participates in it, improperly delegates the administration to the cotrustee, approves, knowingly acquiesces in or conceals it, negligently enables it, or neglects to take reasonable steps to compel the cotrustee to redress a breach the trustee knows or reasonably should know of; cotrustees jointly liable have contribution by degree of fault (O.C.G.A. § 53-12-305). A trustee may sue a cotrustee to compel performance, enjoin a breach or compel redress (§ 53-12-306). The instrument may relieve a cotrustee from duty and liability for another cotrustee's exercise of a power to the same extent a directed trustee is relieved as to a trust director (§ 53-12-505).

Resignation, the vacancy, and the successor

A trustee may resign on at least 30 days' written notice to the qualified beneficiaries, the settlor if living and all cotrustees, as the instrument provides, or by petition; where the resignation would create a vacancy that must be filled, it is not effective until the successor accepts (O.C.G.A. § 53-12-220). Unless the instrument provides otherwise, a vacancy need not be filled while a cotrustee remains (§ 53-12-201(d)). A successor's claim against a predecessor is barred two years after the successor takes office (§ 53-12-307(b)), and the departing trustee accounts to the successor on the change (§ 53-12-243(b)).

The directed trust, and the certification each signs

Where the instrument gives a trust director a power of direction, the directed trustee takes reasonable action to comply with the director's direction and is not liable for it unless compliance would clearly constitute an act committed in bad faith (O.C.G.A. § 53-12-504); a director who holds a power jointly with a trustee has a cotrustee's liability within the jointly held power's scope (§ 53-12-503(b)). A certification of trust is signed by each trustee and states the number and identity of those required to exercise the trustee's powers (§ 53-12-280).

Les textes de loi, mot pour mot

  • Cotrustees generally

    O.C.G.A. § 53-12-204 ↗

    Explication claire et simple ; le texte intégral de la loi n'est pas encore attesté dans notre bibliothèque. Consultez la loi officielle via le lien ci-dessus.

  • Resignation of trustee

    O.C.G.A. § 53-12-220 ↗

    Explication claire et simple ; le texte intégral de la loi n'est pas encore attesté dans notre bibliothèque. Consultez la loi officielle via le lien ci-dessus.

  • Certification of trust by trustee

    O.C.G.A. § 53-12-280 ↗

    Explication claire et simple ; le texte intégral de la loi n'est pas encore attesté dans notre bibliothèque. Consultez la loi officielle via le lien ci-dessus.

  • Liability of cotrustee

    O.C.G.A. § 53-12-305 ↗

    Explication claire et simple ; le texte intégral de la loi n'est pas encore attesté dans notre bibliothèque. Consultez la loi officielle via le lien ci-dessus.

Questions fréquentes

Can Georgia cotrustees act by majority vote?

Not under the statute: a power vested in two or more trustees is exercised only by their unanimous action, with ministerial acts delegable to a cotrustee (O.C.G.A. § 53-12-204); the instrument may provide otherwise (§ 53-12-7).

Is a Georgia cotrustee liable for the other's mistakes?

Where the trustee participated in, improperly delegated, approved or concealed the breach, negligently enabled it, or neglected to compel its redress knowing of it (O.C.G.A. § 53-12-305); contribution follows degree of fault.

What happens when one Georgia cotrustee resigns?

The remaining cotrustees act (O.C.G.A. § 53-12-204(2)), and the vacancy need not be filled while a cotrustee remains unless the instrument provides otherwise (§ 53-12-201(d)); a resignation that would create a vacancy that must be filled takes effect only when the successor accepts (§ 53-12-220(d)).

Le Centre d'apprentissage est de l'information générale sur la loi de Géorgie — pas un avis juridique, ni un substitut aux conseils d'un avocat de Géorgie agréé sur vos faits précis. TrusteeClear est un logiciel, pas un cabinet.