Trust Administration
After the death of a loved one, we frequently experience grief and sorrow at their passing. However, in many circumstances, we are also required to complete to handle the affairs of the deceased person. In some instances, our loved ones have had the foresight to set up a trust to administer their affairs post-death. The person in charge of the trust administration is called the successor trustee. The successor trustee must navigate the complex rules and requirements for the trust administration.
The team at the Law Offices of Jeffrey S. Lind has worked with clients (both as successor trustee and as trust beneficiaries) and provided guidance and insight from years of practice.
When does a trust administration occur?
While most trusts will typically be active during life, once the person who set up their trust (sometimes called the settlor) dies, then a trust administration process will begin.
However, for married couples that set up a joint trust, there may be two trust administration processes: (1) one that occurs on the first death of a spouse and (2) a second one that occurs on the second death of the surviving spouse.
A trust administration can take several months to several years depending on the details specified in the trust, the ability of the beneficiaries to agree, if any litigation occurs, etc.
How do I find out if a dead person had a trust?
If a person passes away and it is unclear if they have a trust or estate plan, usually some research is conducted to investigate. Some clues might be:
Can an estate planning binder or portfolio be found among the deceased person’s possessions?
Is there another friend or family member who may be informed about the estate plan?
If the deceased owned a house/real estate, how is title held? Does the recorder show the property is owned by the deceased individually or is the it owned in a trust)?
Is there anything in the newspaper or court system regarding the deceased individual?
What do I do if I am named successor trustee in a trust?
If you are selected as the successor trustee, you will want to read the trust document about when that takes effect. Usually, a successor trustee will take charge when either:
The person(s) setting up their trust has died; and/or
The person(s) setting up their trust are no longer mentally capable of serving as the trustee.
If you are the successor trustee and take charge, realize that the successor trustee role is a job for you. There is liability associated with the role. You can hire an attorney (like us) who will be your guide and protect you from liability.
