Trust Administration

– About Trust Administration

If you are the named successor trustee of a loved one’s trust, you will step in to manage trust assets and administer the trust because the settlor is incapacitated or has died. The great news is that if the decedent’s trust was funded properly, you will avoid a lengthy and public probate.

Depending on the reason for your appointment, you may need to provide a statutory notice to the trust beneficiaries. Your job will be to identify and manage trust assets and eventually distribute them according to the trust provisions.

Trustees are fiduciaries with significant duties to the trust beneficiaries. You must act with skill, caution, and care in carrying out your duties, always considering the welfare and interests of the trust beneficiaries.

What If an Asset Is Not in the Trust?

If the trustee identifies an asset that should be in the trust but is not, he or she has a few options depending on the total value of the assets left out of the trust. If the asset is of small value, the trustee can likely use a small estate affidavit to claim the asset as a trust asset. For more valuable assets, like a home or a large financial account, a court procedure will be necessary to confirm the asset as a trust asset. These court procedures are much simpler and shorter than a probate, but they do require extra time and expense that can be avoided if the assets are properly funded into the trust. If you find yourself in such a situation, we can help you evaluate your options.

Common Trust Administration Tasks

• identify and marshal trust assets
• provide notice to the beneficiaries along with a copy of the trust if requested
• preserve and protect trust assets; invest or sell trust assets if prudent
• distribute trust assets per the terms of the trust
• provide required accountings to the beneficiaries and keep them informed
• file tax returns for the trust annually until the trust terminates

How Can We Help?

If you need assistance with a trust administration, contact us at (925) 266-3449 or info@fidelitaslaw.com. You may also contact us through our contact form. Somebody will reach out to you within 24 hours.