When a loved one passes away, his or her estate often goes through a court-managed process called probate or estate administration where the assets of the deceased are managed and distributed. If your loved-one owned his or her assets through a well drafted and properly funded living trust, it is likely that no court-managed administration is necessary, though the successor trustee needs to administer the distribution of the deceased’s assets. The length of time needed to complete the probate of an estate depends on the size and complexity of the estate and the local rules and schedule of the probate court.
Trust administration occurs whenever a trust has been created and a trustee has accepted the trusteeship. If the trust is a grantor trust and the only trustee share the grantors of the trust, the trust administration is very easy and no formal requirements need to be followed. However, if any of the trustees are not grantors of the trust, certain formal requirements come into play. They can include the requirements to notify beneficiaries or account for the actions taken by the trustees. Some of the requirements are set forth in the trust instrument and others are set forth by the state legislature. This is especially trust when a grantor passes away., but it can also be trust is while the grantor is living and is no longer a trustee or if the trust is not a grant or trust. Our attorneys will be happy to help you fulfill your Fiduciary Duties whether you are the grantor of the trust, an initial trustee or a successor trustee.