Trust administration occurs when a person has created a trust as part of an estate plan and the trust creator passes away. Assets held in the trust transfer through trust administration, rather than transferring through the probate process, and the steps involved in facilitating the transfer of trust assets are very different than in probate.
In Maryland, trust administration has advantages over probate and the attorneys at Sinclair Prosser Gasior can help you create documents to control the distribution of your assets and achieve the following advantages.
First, trust administration is a simplified process. The Maryland Trust Act and other laws under the Estates and Trusts Code of Maryland provides details on trust administration. The process does involve similar steps to probate, like providing notice to beneficiaries and an asset accounting. However, the trust administration process does not usually require going to court, and it is often simpler and more private.
In addition, there are quicker asset transfers than in probate, as the trustee does not need the approval of the court for distribution. This helps as faster transfers to new ownership may be essential to protect asset values. For example, transferring a business sooner than later may help so there are not periods of uncertainty that hurt operations or impact the brand. Also, proper titling of real estate will help avoid additional probate filings in other jurisdictions.
Finally, a trust often reduces the chance of a successful contest of your wishes. Although people may contest a trust, your continued involvement during your lifetime solidifies that you wished to create the trust and that you were of sound mind at creation. Therefore, this makes it difficult for someone to argue that a trust should not be enforced.
There are various types of trusts and it is necessary to discuss your options with an attorney to meet your individual goals. In doing so, you will help protect your family and assets during the estate administration.