Kennewick Trust Administration Lawyers
Trust administration refers to managing assets within an existing trust. There are three main roles in trust administration. A settlor, the person who creates the trust, places property into the care of the trustee, the person who manages the trust, and the beneficiary, or the person who will benefit from the property within the trust. Below, our Kennewick trust administration lawyer explains more about these roles and the duties involved with managing a trust.
Settlors, Trustees, and Beneficiaries
Settlors create trusts for many reasons. They may wish to avoid challenges to their estate plan after they pass away, or they may set one up so funds are distributed to a charitable organization. When creating a trust, settlors must choose a trustee as well as the beneficiaries. While settlors can also be assigned as the trustee and manage the day-to-day aspects of the trust, they cannot usually be named as beneficiaries.
After a trust is established, trustees are mostly involved with managing the trust. Their role is to manage, hold, and administer the property in the trust on behalf of the settlor. Trustees have a fiduciary duty to act in the best interests of the beneficiaries.
The beneficiaries of a trust are those who will benefit from the property within it. Beneficiaries are often minor children who cannot yet manage their own finances, or charitable organizations.
What Does Trust Administration Involve?
Administering a trust involves many different duties. The most common of these include:
- Obtaining a Tax ID Number from the IRS for the trust
- Filing a tax return after the settlor’s death
- Notifying the beneficiaries of the trust of the death of the settlor
- Filing a final income tax return for the deceased
- Publishing a notice in a local publication about the death of the settlor
- Filing an income tax return for the trust every year as long as the trust remains open
- Collecting all of the assets and protecting them within the trust
- Opening a bank account for the trust
- Filing the will of the deceased with the County Clerk of the Court
- Paying the last expenses of the deceased
- Collecting the proceeds from any life insurance policy
- Determining if probate is necessary for any assets not listed within the trust
- Notifying all relevant financial institutions of the death and informing them that they are the successor trustee
- Informing the Department of Health Services and the VA, if necessary, about the death
- Determining if an estate tax applies at the state or federal level on the estate of the deceased
- Repaying all debts of the settlor of the trust using the assets within the trust
- Liquidating assets if necessary to repay debts of the settlor
The above list includes only a few duties involved in trust administration. A lawyer can explain how to effectively manage a trust and the tasks involved.
Call Our Trust Administration Lawyer in Kennewick Now
Every trust, as well as the personal situation of those involved, is unique. At Moulton Law Offices, P.S., our Kennewick trust administration lawyer can explain what is required and how to manage a trust effectively. Call us now at 1-509-328-2150, #9090 or connect with us online to book an appointment and to learn more.