Trust Administration

Trust Administration is roughly the equivalent of asset transfers after the person has died. It is getting the assets transferred to the beneficiaries.

If an estate is not subject to estate taxes, which is usually the case, trust administration can be completed typically in a couple of months, at a cost of a fraction of probate, which can take a year or more to conclude.

It is very important, especially if you are the trustee of an estate, to work with an attorney. There are statutory notices which must go out to beneficiaries and all rightful heirs. This is particularly important in eliminating potential troublesome and costly contests. A proper payment of debts and expenses and accounting must also be done. Slip ups and short cuts can lead to personal liability for the trustee, so don't try to be a hero and do it yourself.

This is an example of how a very bright person attempted to do some things himself that cost him over $20,000. His mother died, and so he attempted to transfer the inherited property and did not know about the parent/child exclusion form. The statutory period came and went, penalties mounted, there was an unnecessary reassessment, and one day there was a bill in his mailbox for $20,000.

Nothing happens automatically with trust administration, but it is usually relatively straightforward and not horribly expensive. If you don't work with an experienced attorney, however, it can cost you a heck of a lot more than it should.