While a living trust can reduce the costs and delays involved in winding up of a decedent’s affairs after death, many administrative duties have to be completed by the successor trustee. Legal documents have to be prepared, full accountings of income, assets, and debts have to be preformed, appraisals have to be completed, taxes returns filed, and other complex matters may arise, that take time and cost money to complete.
After death of the settlor, the trust continues on as a legal entity through the successor trustee who is in charge of identifying and managing trust assets, paying debts and taxes, and distribute the trust assets to the beneficiaries according to the terms of the trust.
What is involved in trust administration?
A successor trustee has to prepare the proper notices, gather and prepare full accountings of the trust’s income, assets, and debts, appraise assets, prepare and file tax returns, and hold or distribute the trust property according to the terms of the trust. This can be a lengthy and complex process, especially if many assets have to be accounted for.
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