Trusts Administration

Trust administration commences with the management of the property or assets placed in a trust during the process of “funding” the trust.

The management of the trust is the responsibility of the person referred to as the trustee. Thus trustee is obligated to manage the trust property for the benefit of the beneficiary named in the trust instrument.

Court supervision is not usually required in trust administration. The administration of a trust can be relatively simple as in a living trust as long as it remains revocable. In such a situation the settlor or grantor (the person who established the trust) continues to generally manage the trust assets as they were managed prior to being placed in the trust. However, when a trust becomes irrevocable the management becomes more complex.

Some of the tasks that the trustee or successor trustee of an irrevocable trust may confront include:

• Notification of  and/or trust beneficiaries;
• Preparation of an inventory of all trust assets and debts;
  
• Valuation and/or appraisal of all trust assets;
  
• Setting up and maintaining a separate checking account and record-keeping system;
  
• Payment of any debts or claims against the trust;
  
• Preparation and filing of federal and state income tax returns;
  
• Allocation of trust assets to beneficiaries or sub-trusts;
  
• Distribution of trust assets according to directions in the trust instrument;
  
• Preparation and distribution of annual accounting to beneficiaries;
  
• Management of trust assets for the benefit of the trust beneficiaries;
  
• The hiring of professional assistance for the management of the trust;
  
• Preparation and filing of a federal income tax return;
  
• Obtain tax identification number for each trust;
  
• Retitle assets;
  
• Avoid the commingling of trust assets with other property; and
  
• Avoid conflicts of interests with beneficiaries and self-dealing in regards to trust   property.

 

In order to properly fulfill their responsibilities the responsible trustee will obtain the professional services of an attorney with knowledgeable in trust administration. Over the years James L. Evertts, attorney at law, has obtained the experience trust administration to assist you.