“Should I Agree to Be a Trust Administrator?” by Attorney Victor A. Lembo
Trust administration can be a complicated process which places demands upon the trust administrator. If you are asked to serve as a trustee, you should be aware that you may become responsible for trust administration after death. In this position, there are many fiduciary obligations to fulfill.
Should You Agree to be the Administrator During the Trust Administration Process?
Sinclair Prosser Gasior can help you understand how the trust administration process works in order to make an informed choice about whether you are comfortable with the potential job of administering a trust. Also, we can help if you are the administrator of a trust and want assistance to fulfill the important responsibilities with which you have been vested.
When you serve as the trust administrator, you must facilitate the process of transferring assets to trust beneficiaries after the settlor has passed away. This includes changing legal ownership of accounts, titles, and deeds. You have a fiduciary standard under which to operate and cannot act with your own self-interests in mind. Therefore, you must make certain you can appropriately fulfill your responsibilities so the wishes of the deceased are respected and the inheritance meant for trust beneficiaries is kept safe.
The trustee must handle trust assets in an appropriate and responsible manner so the wealth is not dissipated and does not significantly decline in value due to mismanagement. The administrator has to notify appropriate parties during the trust administration process, including those who stand to inherit from the trust and determine any creditor claims against the trust. It is the job of the administrator to inventory and account for all trust assets, and to comply with all tax responsibilities. Also, it is important to note that just because assets are held within a trust does not mean estate tax or other taxes are not owed, and a trust administrator has to ensure full compliance with IRS and state tax laws.
There is a lot of pressure on the trustee to complete the administration process, to do it right, and to facilitate the distribution of assets. Sinclair Prosser Gasior can assist with the entirety of these tasks until it is complete with comprehensive advice and working through complexities of the trust administration.
The Annapolis trust administration process can be a complicated process which places demands upon the trust administrator. If you are asked to serve as a trustee on a trust, you should be aware that you may become responsible for trust administration after a death. If you are already the trustee who has been put in charge of the management of trust assets, you should also know that the trust administration process will fall to you upon the death of the trust creator.
Becoming a trust administrator is not just a ceremonial job. There are many responsibilities that you take on when you serve as the administrator of a trust. You need to ensure that you can fulfill these obligations before you assume the role of trust administrator.
Sinclair Prosser Gasior can help you to understand how the Annapolis trust administration process works so you can make an informed choice about whether or not you are comfortable administering a trust. We can also help you if you are the administrator of a trust and you want comprehensive legal advice and assistance with fulfilling the important responsibilities you have been vested with.
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