Trust Administration is a crucial process that ensures the efficient management and distribution of trust assets according to the wishes of the trustor.
Trust Administration is more than just a process; it's a strategic plan that ensures the trustor's wishes are carried out efficiently and effectively, providing peace of mind for both the trustor and the beneficiaries.
Upon the death of the trustor, the Trust Administrator, often a family member, close friend, or a corporate trustee, is responsible for several aspects of Trust Administration. These responsibilities include:
Providing Notice: The Trust Administrator must provide notice and copies of the trust to all beneficiaries and heirs, and notify appropriate state and county agencies.
Tax Management: The Trust Administrator is responsible for filing an estate tax return, if necessary, and requesting a taxpayer identification number from the IRS.
Asset Collection: The Trust Administrator must establish a trust administration bank account to collect assets.
Dispute Mediation: The Trust Administrator must mediate disputes between beneficiaries and family members not named as beneficiaries.
The Trust Administrator has a legal obligation to perform their duties diligently and prudently. These duties include calculating the total value of the trust property, overseeing the investment of trust assets, keeping accurate and detailed records, and overseeing the termination of the trust.
In return for their services, a Trust Administrator is entitled to compensation from the trust, either as specified in the trust declaration or as reasonable compensation if not specified.
Understanding Trust Administration is a crucial part of estate planning. It provides a roadmap for the management of your trust assets and ensures your wishes are honored. Start your journey towards a secure future today.