Practices

Trust Administration

When the grantor or settlor of a revocable living trust dies, the successor trustee frequently requires legal assistance in administering the revocable living trust. The issues that a successor trustee encounters include: (1) gathering and valuation of assets; (2) paying creditors and administrative expenses; (3) filing income tax returns; (4) publishing a notice to creditors; (5) filing a federal estate tax return; (6) providing a notice and information to beneficiaries; and (7) distributions to beneficiaries.

Often times, a successor trustee believes he or she can distribute amounts to beneficiaries immediately after death. This is not wise. Besides publishing the required notice to creditors, a creditor has four months to file a claim. A prudent trustee will not make substantial distributions until the claims period has expired.

A successor trustee is also under a duty to account. Frequently, an attorney’s assistance is needed in meeting the accounting requirements. Some other issues that may need to be addressed during the trust administration process include environmentally impacted real estate and investments decisions.

This summary is intended as a source of general information. If you have questions regarding this summary, please contact one of our trust administration attorneys.