Trust administration is the management of trust property by an assigned trustee. This is done according to the terms defined in the trust document. The trustee has a fiduciary duty to act in the best interest of the beneficiaries after the death of the settler. They are able to manage everything and make sure that the wishes of the settler are satisfied. Many people prefer to create trusts in order to avoid a probate proceeding. It is important to note that trust administration does not involve the court. It can be done privately. It is also less expensive and allows a trustee to distribute the assets quicker.
The process is kick-started with a notice that is sent to the heirs of the settlor and the beneficiaries that are included in the document. The notice is mandatory, and it is intended to inform every involved party that the process has started. A beneficiary is given a certain number of days to file a trust contest when they receive a notice. The particular jurisdiction determines the exact number of days. One might lose their ability to file it if the period expires and no contest is filed.
Change of Ownership
The property must be handled according to the wishes of the settlor if there is real property in the trust. The titles are bestowed to the successors according to the terms outlined in the document. It is advisable that an affidavit is recorded with a copy of the death certificate. This is done against all properties that were held by the settler and are included in the trust. The form that signifies the change of ownership is usually recorded in line with the affidavit. An exemption form must be completed in certain cases. One has to fill out the form if real property is being transferred from the parents to the children in a means that exempt tax reassessment. Our trust administration attorneys can help prepare these documents in the right manner.
Titles to other assets will need to be transferred so that they reflect the name of the successor trustee. It is important that the name of the trustee is included and specified as a successor. One needs to get a federal tax identification number for the trust so that this can be reported to the Internal Revenue Service (IRS). This is done so that any income that the account makes while it is managed by the trust is known.
It is the responsibility of the successor trustee to settle all the debts and satisfy all liabilities. Taxes enable trust administration to be a complex process if any taxes are owed. A trustee needs to calculate the value of an estate first to determine whether they need to file estate tax returns on behalf of the settlor. Trust administration involves keeping detailed records of the finances and transactions of the trust. A trustee is responsible for overseeing all activities and making sure that a proper accounting is done.
Contact Our Trust Administration Attorneys
It is advisable to get an attorney right from the start in order for one to perform this in the right way. An attorney will offer guidance and make sure that you meet your obligations as a trustee. They will also help in preparing certain crucial documents and make the process a quick one.