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Helping You Complete Your Trustee Duties
When a family member passes away, their estate and assets must be divided up between family members and beneficiaries. If your loved one created a trust instead of a will, then the instructions in the trust document must be carried out by the trustee. Being named as a trustee comes with many legal responsibilities that you must fulfill to the best of your ability.
Because not many people have experience with trustee duties, it’s helpful to rely on the experience and knowledge of a legal team. At Bloodworth Law, PLLC, our attorneys can guide you through the trust administration process, helping you carry out your duties and honor your loved one’s wishes. Failing to complete your duties correctly can lead to delays or even legal consequences. Contact our team today at 407-449-8958 for more information.
What is a Trustee?
A trustee is an individual or company that oversees and manages the assets of the trust. The trustee can hold, manage, and administer funds on behalf of the estate. All trustees have a fiduciary duty to act in the best interests of the beneficiaries of the trust.
If you have been named as a trustee, your specific duties will be dictated in the trust document. In most cases, you’ll be required to identify and evaluate all trust property. You must also distribute the trust assets and funds to the named beneficiaries.
Trustees are also responsible for settling any tax matters related to the trust. In most cases, you will need to prepare a federal estate tax return and a tax return for the trust itself. You’ll also be required to prepare a final income tax return.
Depending on the type of trust you manage, you may also be required to do the following:
- Charitable trustees: Manage funds left in a charitable trust to ensure they are gifted properly
- Successor trustees: Manage a trust when the original trustee is unable to do so
- Investment trustees: Manage the operations of an investment account to grow it over time
- Corporate trustees: Work with large firms that manage trusts for clients
- Bankruptcy trustees: Appointed by the U.S. Bankruptcy Court to distribute assets after bankruptcy
Individual trustees often work on a volunteer basis, while corporate trustees are typically paid for their services. If you’ve been named a trustee, our team is here to help you and answer all of your questions. Contact our law firm today for more information.
What is Trust Administration?
A trust is created when an individual, also called the settlor, agrees to allow a third party to manage and maintain assets within the trust. There are many different types of trusts, some of which provide tax savings and creditor protections.
Trust administration is the process of managing assets within a trust. When the creator of the trust passes away, the trustee has several duties to complete, including notifying beneficiaries, paying taxes, upholding the trust, and more.
After beneficiaries are notified of the settlor’s passing, they have a certain amount of time to file a trust contest. Beneficiaries may contest the trust if they believe the instructions are unlawful or the trust was created under duress. If you are the trustee, you will have to respond to any trust contests filed to ensure you can carry out the instructions left in the document.
Trustee duties involve many legal documents and responsibilities. Our team recommends consulting with an attorney before starting the trust administration process to ensure you have the necessary information and that you can complete your duties to the best of your ability.
What is a Beneficiary?
A beneficiary is anyone who benefits from a trust. In most cases, beneficiaries receive benefits after the settlor has passed away. Many trusts are created to support beneficiaries because they are minors and cannot manage funds or assets on their own.
Beneficiaries can also be charity organizations or nonprofits. Leaving money to charity can have beneficial tax implications for the estate, especially if the settlor used a charitable trust.
Settlors must provide clear instructions and name each beneficiary individually in the trust document to avoid any confusion. However, some settlors allow trustees to distribute assets unequally as they see fit. This can lead to trust disputes and may be taken to court.
What’s the Difference Between a Trust and a Will?
Trusts and wills both have their places in an estate plan. A will is a legal document that notes the person’s final wishes and how they want their assets to be distributed. It can also include instructions for guardians of minor children and pets.
The main difference between a trust and a will is the probate process. Every will must undergo probate, which is a court-overseen process to determine the will’s validity. Probate can last several months or longer, especially if there are will contests. It is also a public record, meaning all assets in the will become public knowledge.
Trusts do not go through the probate process, saving family members time and money after a loved one’s death. Trusts also typically don’t become public record, meaning the assets within them can remain private. Many individuals choose trusts to ensure their loved ones receive their assets quickly and without expensive delays.
It’s also possible to have both a will and a trust. Trusts offer many different benefits, some of which may be more relevant to you than others. If you’re interested in learning more about trusts or wills, our team is here to assist you.
What Does a Trust Administration Attorney Do?
As your trust administration attorneys, we will act as a guiding force in completing your trustee duties. There are many different things you must do after a settlor passes away to fulfill your fiduciary duties. Some trustees become overwhelmed, unsure of where to start and how to keep track of deadlines.
As your legal team, we can help with the following:
Transferring Assets
Trustees are required to transfer assets according to the instructions in the trust document. Our team will help you identify the right assets and file the paperwork to transfer them.
Inventorying Assets and Debts
All trusts require regular accounting and inventorying of assets and liabilities. Our experienced attorneys can help you provide the court and beneficiaries with accountings.
Filing Taxes
Trusts often help minimize estate tax liabilities. However, trustees must still manage additional taxes during the trust administration. Our team will help you identify what taxes must be paid and on what timeline.
Distributing Assets
One of the key duties of a trustee is to distribute assets and funds to named beneficiaries. We can help you track down beneficiaries and give each of them their proper distributions both now and in the future.
Closing the Trust
Some trusts are designed to remain open for decades, while others must be closed soon after the settlor’s death. If you are a trustee for a trust that needs to be closed, an attorney on our team will help you file the proper paperwork and take the proper steps to do so.
Why is It Important to Have a Trust Administration Attorney?
Trustees have a fiduciary responsibility to act in the best interest of the beneficiaries of the trust. If you have been named as a trustee, failing to complete your duties or act in this best interest can have legal ramifications. Working with a trust administration attorney on our team allows you to remain confident as you navigate the trust administration process.
At Bloodworth Law, PLLC, we know that not everyone has a legal background. We offer support and representation for trustees so you can rest assured that you are fulfilling your loved one’s wishes after they have passed.
Please don’t feel like you must handle all of your trustee duties on your own. Our team has been serving the Orlando area for years, and we are confident we can assist you. For more information, contact our team today by calling 407-449-8958.