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| Have You Been Named as a Trustee of a Living Trust?
Learn What Lies Ahead in Trust AdministrationDownload Your Free Report TodayWhat is a living trust? Do you really need one? A living trust is a document that spells out what happens to your assets in the event of death or incapacity. Even if you do not think you have much of value, you should have a trust to ensure that what you do have goes to your heirs of choice, not creditors, ex-spouses, or the government. What is Trust Administration? Trust Administration is the process of reviewing a trust and locating all assets named in the trust. Once the trustee — the person named to administer the trust — locates and identifies the assets, she or he must determine the value of the assets. A trustee should always contact an experienced estate attorney, as she or he must properly administer the trust within a specific time frame. The attorney will explain the tax and legal requirements that affect the estate and the terms of the trust so that you can understand the document and perform your trustee duties. What is the Next Step in Trust Administration? After you, as the trustee, take inventory of the assets and value them, your trustee duties do not end. You must pay the trust taxes, and then divide the trust assets according to the instructions in the document. You must also file the 706 Tax Form within nine months of death, along with the last 1040 and a 1041 for the trust. A 1041 must be filed for each year after death that the trust exists. Once the IRS gets their share and all other bills have been paid, your next job is to distribute the assets to the beneficiaries. Trust Funding Pitfalls One of the most common problems with a trust is that it is not funded properly. If the deceased person did not put all the assets that were intended to be in the trust into it, those assets will have to go through probate. Your last will, if drafted properly, will have a pour-over provision that dictates that any assets not in the trust go into the trust at the time of death. However, those assets will most likely still have to go through probate, which makes the assets of the probate public record and costs additional money. If you are named as trustee, make sure you take your duties seriously. Ramifications can fall on you if you do not properly administer the trust. Contact an experienced estate attorney, such as Roy W. Litherland to help you administer the trust and to avoid problems while carrying out your trustee duties.
How to Learn More About Trust Administration When you download your free report, Trust Administration: Prior Planning Prevents Problems, you’ll learn:
Get all the tools you need to ensure a quick and hassle-free trust administration by downloading our FREE report today!
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Trust Administration: Prior Planning
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