Trust Administration

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Trust Administration

WHAT IS TRUST ADMINISTRATION (vs Probate)?

Trust Administration is the administration of a decedent’s estate without Court – Supervision. The trustee appointed in the trust ensures that creditors, taxes and expenses are paid before distribution of the Trust in accordance with the decedent’s terms, which were written in the Trust. Because the assets were transferred during the lifetime to the trustee, the trust avoids the need to use the probate process to make transfers after death. A Court usually only gets involved if one of the parties, heirs, beneficiaries’ files a lawsuit related to issues of a decedent’s competency at the time the Trust was written, undue influence by one party, Probate is the court-supervised administration of a decedent’s estate. It is a process created by state law to transfer assets from the decedent’s name to his or her beneficiaries. A personal representative is appointed to handle the estate administration. The probate process ensures that creditors, taxes and expenses are paid before distribution of the estate to the beneficiaries. The personal representative is accountable to the court as well as the estate beneficiaries for his or her actions during the administration. For probate estates having less than $75,000 of non-exempt assets, Florida law provides a simplified probate procedure, known as summary administration.

DO I BENEFIT BY AVOIDING PROBATE?

Avoiding probate may lower the cost of administering your estate and time delays associated with the probate process. The administration of a revocable trust after death is similar to a probate administration. The trustee must collect and value the trust assets, determine creditors and beneficiaries, pay taxes and expenses, and ultimately distribute the trust estate. A trustee is entitled to a fee for administration of the trust, as is the personal representative of an estate.

WHAT WILL WE DO WHEN A TRUSTEE HIRES US TO HELP THEM WITH THE ADMINISTRATION?

A written trust advises the Successor trustee of the decedent’s wishes, what to do with the assets after the death.

The trustee has duties and responsibilities, as well as liabilities, in administering a Trust. The Powers granted to a trustee require strict compliance.

We help and guide the trustee by putting those “powers” in plain English.

We help with obtaining a tax identification number for the Trust, filing a “Notice of Trust” to provide formal public notice that there is a Trust in accordance with Florida Statutes.
We guide the trustee in continuing to preserve the assets of the trust, including the care of real property, investments.
We also help with locating creditors, making decisions regarding when and how to keep beneficiaries appropriately informed, and provide proper record keeping of payments of debts during the court of the administration.
We also guide the trustee through the documentation which can help parties sign the documentation required to permit the quickest way to administer the trust, by asking the heirs, beneficiaries to waive the objection period and permit quicker distributions.

It is an honor to be chosen to act as a trustee. You can be assured that the decedent thought carefully of your appointment as trustee, and determined that you would watch out for the best interests of the assets, beneficiaries and heirs. However, it is important to recognize that Florida law provides penalties for a trustee who fails to perform their duties and the trustee can be subject to lawsuits. It is important to retain a law firm you feel comfortable with and have confidence in providing you the support you need as a trustee.

Disclaimer: The material herein represents general legal advice. Since the law is continually changing, some provisions may be out of date. It is always best to consult an attorney about your legal rights and responsibilities regarding your particular case.