What is Trust Administration?

Trust administration is very similar to probate except it involves a private administration of the affairs of the deceased person and not a public administration through a probate. Often, the timeline to complete a trust administration is shorter than probate because there are fewer hurdles to overcome as a result of the private administration. Generally, if the assets line up with the trust planning, it will be less expensive than probate. However, there are still many things that need to be done by the successor trustee before the assets of the trust can or should be distributed to the beneficiaries.

Although the needs of each situation will vary considerably depending on the size of the estate and the nature or location of the assets, as well as the distribution plan created by the decedent, and how completely the trust was actually funded (meaning the assets are actually owned by the trust or the trust is the beneficiary), the following will provide some general guiding principles for a successor trustee:

1. A successor trustee is a fiduciary acting for the benefit of the beneficiaries of the trust and estate. Be careful before you do anything especially taking actions that benefit yourself or before distributing any assets. There could be tax implications, creditor claims, or misinterpretation of the trust distribution plan that could subject the successor trustee to personal liability for any adverse consequences;
2. Handle any memorial or funeral arrangement;
3. Order at least 10 death certificates;
4. Locate any original estate planning documents;
5. Begin a list of assets, and beneficiary information (name, address, telephone number);
6. Remove valuables from the residence and store safely;
7. Complete a change of address form with the Post Office to have the decedent's mail forwarded to you;
8. Determine whether it is appropriate to change locks on any property not occupied by the spouse or a primary beneficiary;
9. If you can gain access to the decedent's safe deposit box, do not remove contents until it has been inventoried in the presence of a bank officer - only then should contents be removed;
10. Gather personal records, including checkbooks and statements for at least three years; obtain copies of income tax returns for last three years;
11. Gather all life and accident insurance policies. (Don't forget to check travel clubs, alumni associations, credit card companies, trade associations and any organization that might make life insurance available to its members.);
12. Contact Social Security and VA if applicable;
13. Hold any Social Security checks received after date of death, as benefits paid during the month of the decedent's death will be recalled by the Social Security Administration;
14. Make certain that property and casualty insurance coverage continues on personal effects, automobiles, real estate and any goods in storage; and,
15. Compile a list of all household furniture and furnishings (by major item or category) and take detailed photographs of the contents.

Lastly, call to schedule an appointment with Pfarr & Rethore so that we can help guide you through the administration process. Most people if they are lucky do not have much experience with these types of matters. It, therefore, is important to have the guidance of a professional to assist you with the various responsibilities you have agreed to undertake.