Trust Administration
What Is Trust Administration?
The death of a loved one is a challenging period in our lives, and it is normal to feel a wide range of emotions after someone dies. Dealing with the complicated process of administering your loved one’s estate doesn’t have to add more stress to your life. Fortunately, families who have chosen to plan with a Living Trust estate plan can often skip the Probate process completely.
Trust Administration is the process of administering a trust-based estate plan and distributing the inheritance to beneficiaries in private and without court supervision.
This process can still be complex, which is why our team at Legacy APC is here to provide guidance and ensure the proper administration of the trust.
 The Trustor (or creator of the trust), names a Successor Trustee who is responsible for carrying out the terms of the trust at their death. The Successor Trustee acts as a fiduciary and is responsible for accounting the assets, distributing assets to beneficiaries, paying taxes, and managing investments.Â
The Trust Administration process can be complex and time-consuming, so the trustee needs to have a good understanding of the trust documents and the law. The trustee may also need to hire an attorney and accountant to assist with the administration process.
Steps Involved in Trust Administration
There are several steps involved in trust administration, including:Â
- Step 1 - Following the funeral plan and burial instructions left by the deceased
- Step 2 -Identifying and harvesting the
- Step 3 - Assets of the trust including real estate, bank accounts, investments, and other assets
- Step 4 - Notifying creditors and beneficiaries to provide time to file claims against the estate and give notice to beneficiaries that they may be entitled to an inheritance
- Step 5 - Paying the debts of the trust. The trustee is responsible for paying any debts that are owed by the trust. These debts may include taxes, outstanding bills, and funeral expenses.
- Step 6 - Distributing assets to beneficiaries. The trustee must distribute the assets of the trust to the beneficiaries following the terms of the trust. The distribution may include the transfer of deeds and other forms of registered title.
- Step 7 - Filing tax returns. The trustee may be required to file tax returns for the trust, including income tax returns, estate tax returns, and gift tax returns.
- Step 8 - Managing the investments of the trust. The Trustee may be responsible for managing the investments of the trust including investing in stocks, bonds, and other financial assets to reduce the risk of loss.
- Step 9 - Maintaining financial records. The trustee must keep accurate records of all income and expense transactions related to the trust such as receipts, canceled checks, and trust accounting statements.
Do I Need To Hire an Attorney for Trust Administration in California?
The trust administration process can be a complicated, time-intensive task, but the Successor Trustee must strictly follow the terms of the trust to avoid legal issues. Trustees have a fiduciary duty to act in the best interests of the beneficiaries of the trust, meaning that they must manage the trust assets prudently and avoid any conflicts of interest.Â
If a trustee is accused of mismanaging or misappropriating trust assets (even unintentionally), they could face a personal lawsuit. This is a serious risk, and trustees need to take steps to protect themselves by working with a qualified estate administration attorney.
Our experienced team at Legacy APC is here to assist you in effectively fulfilling your duties as a Successor Trustee and expeditiously administering the trust as the Trustor intended.
 We offer a free consultation. Call our office today at (619) 696-0778 and ask for a trust administration meeting.
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