Trust administration
Trust administration is the process of managing and distributing assets held within a trust after the trust creator (grantor) has passed away or become incapacitated. Unlike the probate process, which involves the court, trust administration typically occurs privately and outside of court oversight. Contact us to learn how we can help you with overseeing your trust.
Contact us to learn how we can help with your trust administration
Overview of Trust Administration
Trust administration can be complex, and it's crucial to follow the legal and administrative requirements outlined in the trust document and applicable state laws. Many trustees seek the guidance of legal and financial professionals to navigate the process successfully and ensure that the grantor's wishes are carried out accurately and efficiently.
Trust Establishment
Trust administration begins with the creation of a trust by the grantor. The trust document outlines the terms and conditions for managing and distributing assets, designates beneficiaries, and appoints a trustee responsible for overseeing the trust.
Notification and Documentation
When the grantor passes away or becomes incapacitated, the trustee initiates the trust administration process. Beneficiaries and heirs are typically notified, and relevant documents, such as the trust instrument and the grantor's death certificate, are gathered.
Asset Inventory
The trustee compiles a comprehensive inventory of all assets held within the trust. This includes financial accounts, real estate, personal property, investments, and any other assets specified in the trust.
Debts and Expenses
The trustee identifies and pays any outstanding debts, taxes, or expenses associated with the trust or the grantor's estate. This may involve liquidating assets or using trust funds to settle these obligations.
Asset Distribution
Following the resolution of debts and expenses, the trustee distributes the remaining assets to the named beneficiaries according to the terms specified in the trust document. This distribution can occur in one lump sum or be spread out over time, as determined by the trust.
Record Keeping
Throughout the process, the trustee maintains detailed records of all transactions, communications, and decisions made during the trust administration. This ensures transparency and accountability to beneficiaries.
Final Accounting
Once all tasks are completed, the trustee prepares a final accounting of the trust's activities and provides it to the beneficiaries for review and approval.
Trust Termination
After the assets are distributed, the trust is typically terminated, and any remaining administrative tasks, such as closing accounts and finalizing paperwork, are carried out.
Hi! I’m Jayme.
I’m an estate planning attorney in Rockford, IL.
I help individuals and families in Illinois and Wisconsin build their legacy estate plan plan, easily and 100% remotely. My top priority is to ensure that your loved ones are taken care of when life throws you for unexpected turns.
Join me and I will make sure to protect those you cherish most!