Trust the Process

If you have been named trustee of a loved one’s trust, you may be wondering what is involved in trust administration.

Trust administration is the crucial process of properly managing and distributing the trust’s assets in accordance with the wishes of the settlor (the person who created the trust).

A trustee has many obligations, but they do not have to be overwhelming. Key responsibilities include distributing assets to beneficiaries, paying creditors, ensuring that all tax filings and payment obligations are met, and managing investments and trust property.

Beneficiaries must be informed about the trust, the trust assets, and their respective rights within a specified time period after you accept the trusteeship. This is both legally required and critical to maintaining transparency and allowing beneficiaries the opportunity to track your actions as trustee.

Additionally, you need to keep detailed and accurate records of all transactions undertaken on behalf of the trust and provide regular accountings to all beneficiaries. These records should include all income, expenses, gains, losses, and distributions relative to the trust.

Finally, you must make sure all federal and state tax filings are completed. Working with a tax professional will ensure compliance with all necessary tax obligations.

These tasks, among others, are important aspects of your obligation as a trustee, but you don’t have to navigate the process alone. The estate planning attorneys at Wright Beamer are ready to help you every step of the way! You can reach us at 248.477.6300.