Trust Administration
Administering a Trust can be a complex and emotionally challenging task. As a Trustee, you have both legal obligations and a fiduciary duty to act in the best interests of all beneficiaries. We're here to guide you through every step of the Trust Administration process, ensuring you fulfill your responsibilities with clarity and confidence.
Trust administration is the process of managing and carrying out the terms of a trust after it has been established, especially after the death of the person who created it (the grantor). This process is handled by the trustee, who has a legal duty to act in the best interests of the beneficiaries and according to the terms of the trust.
Trust administration
Key steps in trust administration include:
We help clients create and update essential estate planning documents, including:
Reviewing the trust document – Understanding the instructions and responsibilities outlined by the grantor.
Gathering and managing assets – Identifying, securing, and properly managing the trust’s assets.
Notifying beneficiaries and interested parties – Informing them of the trust and their rights.
Paying debts and expenses – Settling any valid debts, taxes, and administrative costs.
Handling taxes – Filing necessary tax returns and paying any taxes owed by the trust.
Distributing assets – Distributing trust property to the beneficiaries as directed by the trust.
Trust administration can be a complex and time-sensitive process, and trustees often work with attorneys, accountants, and financial advisors to ensure they fulfill their duties properly and avoid legal risks.
Reasons Why a Trustee Should Get Legal Advice
A trustee has significant legal and financial responsibilities. Seeking legal advice helps ensure the trustee properly fulfills their duties and avoids personal liability.
A complete estate plan typically includes:
Understanding Fiduciary Duties – Trustees are held to high legal standards and must act in the best interests of the beneficiaries. A lawyer can clarify these obligations.
Trust Interpretation – Trust documents can be complex or unclear. Legal advice ensures the trustee correctly interprets and follows the terms of the trust.
Asset Management – Proper handling of trust assets (investments, real estate, business interests, etc.) may involve legal issues that require professional guidance.
Tax Compliance – Trusts may have income, estate, or gift tax implications. An attorney can work with tax professionals to ensure proper reporting and payment.
Beneficiary Issues – Disputes or misunderstandings with beneficiaries are common. Legal advice helps the trustee handle these situations diplomatically and lawfully.
Avoiding Personal Liability – Mistakes in trust administration can lead to lawsuits. A lawyer can help the trustee avoid errors that could result in personal financial responsibility.
Probate and Court Filings – Some trusts may require court involvement. Legal assistance ensures all necessary documents are filed correctly and deadlines are met.
In short, legal counsel provides trustees with essential support, helping them fulfill their role confidently, efficiently, and in compliance with the law.
Peace of mind begins with the right support.
At Greerty Law Group, our experienced and knowledgeable team is here to help you manage the critical—and often complex—responsibilities of Trust Administration, all while helping to reduce your personal liability.
FAQs
What are the responsibilities of a successor trustee in California?
The successor trustee has a fiduciary duty to act in the best interest of the trust and its beneficiaries. Their duties typically include:
Notifying beneficiaries and relevant government agencies
Gathering and managing trust assets
Paying valid debts, taxes, and expenses
Preparing a trust accounting (if required)
Distributing assets according to the terms of the trust
How long does trust administration take?
While much faster than probate, trust administration still takes time. Most cases are completed within 6 to 12 months, depending on the complexity of the trust, the nature of the assets, tax issues, and whether any disputes arise. Proper guidance can help ensure a smooth and efficient process.
What is trust administration, and when does it begin?
Trust administration is the process of managing and distributing the assets of a trust after the trust creator (the "trustor" or "grantor") has passed away. It begins immediately upon the death of the trustor and is carried out by the successor trustee named in the trust document.
Do I still need to go through probate if there’s a trust?
Usually, no. One of the primary benefits of a properly funded trust is that it avoids probate. However, if any assets were not properly transferred into the trust before death, a limited probate process (called a Heggstad petition) may be required to move those assets into the trust.
