A revocable or living trust is a legal document that usually includes directions for what happens to a person’s assets upon death. A trust is an useful way to manage assets during life, while supplying a smooth transfer of assets upon death. A living trust can avoid probate at death and can prevent the court from controlling assets at incapacity.
Once a trust has been established a trustee has responsibilities that must be fulfilled. These duties make up a trust administration. Investment and management of trust assets, preparation of trust accounts, preparing tax returns and making distributions to beneficiaries are some of the tasks which need to be completed in trust administration. Other tasks include contacting beneficiaries, collecting, valuing and managing assets; notifying creditors; paying debts, taxes, bills and final expenses; and, distributing remaining income and assets.
Mistakes by a trustee during a trust administration can result in the personal liability of a trustee. Attorney Rob McCarthy advises and helps trustees administer trusts. We help guide trustees through the complexities of administering a trust.