Research shows that 67% of Americans die without any kind of estate plan or instructions. You’d be wise to learn the ins and outs of trust administration before the unexpected happens.
Without a living trust or instructions, someone must step in and act as the estate’s manager and executor. This is called trust administration.
If something happens and you don’t have any trust or instructions, someone will have to act in your place. If you’re lucky, it can be a notary, a close relative, or a lawyer.
Keep reading to learn everything you need to know about trust administration.
Table of Contents
What is Trust Administration?
Trust administration is the process of managing the assets of a trust on behalf of the beneficiaries or heirs of the trust. Trust administration involves the fiduciary management of a trust’s assets. It usually involves estate taxes and legal and investment decisions.
An attorney and accountant typically handle trust administration. They must work with the trust’s grantor, assess its assets, and consider the trustee’s duties.
The Responsibilities of a Trust Administrator
The administrator is responsible for ensuring that the trust is funded, that the terms of the trust are carried out, that the assets are managed properly, and that the interests of the beneficiaries are protected. If you want to explore more about the services offered, the Peak Trust Office will assist families and their trusted advisors to achieve their estate planning goals.
Benefits of Having a Trust
One of the primary benefits of having a trust is the amount of control the settlor can have over how their assets are managed and distributed after their passing.
The trustee has a fiduciary responsibility to act in the best interests of the trust beneficiaries. This includes making distributions, filing tax returns, and working to ensure the trust generates income.
Having a trust administered properly can give the settlor peace of mind knowing that their wishes will be met and the trust beneficiaries will receive the intended benefit.
Steps to Take When Starting a Trust Administration
The first step is to review the trust document to determine the trust’s goals, objectives, and powers. It’s important to understand the fiduciary responsibility of the fiduciary and make sure to comply with the terms of the trust.
The second step is to collect assets from multiple sources and transfer them into the trust. This includes property, stocks, bonds, and any other investments that must be managed for the trust.
The third step is to manage the trust assets and ensure the trust document is followed. This includes handling the accounts and investments. As well as distributing proceeds to the beneficiaries.
Lastly, it’s important to keep accurate records and monitor trust performance. Remember to adhere to all applicable state and federal laws to avoid confusion.
What You Need to Know About Trust Administration as a First-Time Trustee
Anyone considering trust administration needs to be prepared to work to understand the basics. This is not something a person should enter without doing some due diligence first.
With the helpful advice from this article, you should be able to start working through the process with confidence.
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