Trust Administration and Estate Administration.
Our Expertise
Real Estate Law
Trust Administration
Landlord Representation
Wills, Trust & Estate planning
Business Litigation & Formation
Corporations, Partnerships & LLCs
Divorce & Family Law
Probate Administration & Litigation
What Are Trust and Estate Administration?
Estate administration is the process estates must undergo before the decedent’s assets can be distributed to beneficiaries pursuant to the decedent’s will, or if there is no will, pursuant to the laws of intestate succession. At the helm of estate administration is the executor or administrator, who begins overseeing the estate once they are officially appointed to the role by the court.
Trust administration is the process trusts must undergo before trust assets can be distributed to beneficiaries. At the helm of trust administration is the successor trustee, who takes over management of the trust upon the death or incapacitation of the settlor, who usually serves as the initial trustee of a trust.
Executors and trustees share many of the same administrative responsibilities, including:
- Creating an inventory of assets and their value at the time of the decedent’s death
- Securing and preserving the decedent’s property
- Satisfying any outstanding obligations to the decedent’s creditors
- Preparing periodic accountings to beneficiaries
- Keeping beneficiaries reasonably informed about administration
- Litigating on behalf of the estate or trust if necessary
- Making timely distributions to beneficiaries
Both executors and trustees are fiduciaries, they have a duty to always act in the beneficiaries’ best interests. If they don’t, they could be sued. The best way to avoid such situations is to have skilled estate and trust administration attorneys on your team to guide you and assist with your duties. Executors and trustees almost always have the right to pay for the services of attorneys and other professionals with estate or trust funds, so long as their services provided a benefit to the estate or trust, respectively.
What Are Trust and Estate Administration?
Estate administration is the process estates must undergo before the decedent’s assets can be distributed to beneficiaries pursuant to the decedent’s will, or if there is no will, pursuant to the laws of intestate succession. At the helm of estate administration is the executor or administrator, who begins overseeing the estate once they are officially appointed to the role by the court.
Trust administration is the process trusts must undergo before trust assets can be distributed to beneficiaries. At the helm of trust administration is the successor trustee, who takes over management of the trust upon the death or incapacitation of the settlor, who usually serves as the initial trustee of a trust.
Executors and trustees share many of the same administrative responsibilities, including:
- Creating an inventory of assets and their value at the time of the decedent’s death
- Securing and preserving the decedent’s property
- Satisfying any outstanding obligations to the decedent’s creditors
- Preparing periodic accountings to beneficiaries
- Keeping beneficiaries reasonably informed about administration
- Litigating on behalf of the estate or trust if necessary
- Making timely distributions to beneficiaries
Both executors and trustees are fiduciaries, which means that they have a duty to always act in the beneficiaries’ best interests. If they don’t, they could be sued. The best way to avoid such situations is to have skilled estate and trust administration attorneys on your team to guide you and assist with your duties. Executors and trustees almost always have the right to pay for the services of attorneys and other professionals with estate or trust funds, so long as their services provided a benefit to the estate or trust, respectively.
Why Do You Need an Estate or Trust Administration Attorney?
You may have the need for an estate or trust administration attorney if you are the executor or administrator of an estate or the trustee of a trust, especially if it is your first time acting in this capacity. Because the duties that come with this role are extensive and complex, even seasoned executors and trustees often hire lawyers to assist with administration.
There is little room for mistakes, misconduct or negligence when dealing with estates and trusts, as they can cause financial harm to the estate or trust and threaten beneficiaries’ inheritances. Having a trusted lawyer on your team can help prevent such errors and protect you against liabilities.
Lastly, if the executor or trustee needs to litigate , they can hire a lawyer to represent the estate or trust. (e.g., they discover that the decedent had been financially abused when alive)
Only the most Simple Trusts or Estates should be carried out without the help of a law firm. Utilizing the services of a trusted probate administration lawyer will make your job easier.
Interpreting the Will or Trust in an Administration.
Carrying Out Financial Obligations as an Esate or Trust Administrator.
Litigating, Selling Property and Making Other Important Decisions
Over the course of administration, executors and trustees will have to make important decisions about the estate or trust, such as whether to buy or sell real property, invest estate or trust funds, litigate on behalf of the estate or trust, etc. Some of these decisions will require court approval, and others will not. The only way to ensure you are considering all the variables when making decisions such as these is to involve a lawyer in a decision-making process.
Protecting Yourself Against Liabilities
Trust and Estate Administrators are Fiduciaries. A fiduciary must properly perform the following duties to avoid a breach of duty claim and personal liability.
These duties include:
- Acting in the beneficiaries’ best interests at all times
- Avoiding conflicts of interests
- Avoiding impartiality by favoring one beneficiary over another
- Not making risky investments
- Not carrying out financial transactions for personal gain
- Not misappropriating, misusing or mismanaging assets
- Providing beneficiaries with accountings and information about administration
- Making distributions to beneficiaries in a timely fashion
- Keeping the assets of the estate or trust separate from personal assets
An Executor may be removed if they breach their fiduciary duties. Consulting experienced trust and estate administration attorneys prior to making decisions, will help you uphold your duties as administrator and keep you out of legal trouble.
Making Distributions
The last step of estate and trust administration is making timely distributions to beneficiaries. Distributions can trigger unforseen tax complications. An experienced attorney, with the assistance of your tax adviser, has the skills to correctly calculate, allocate and distribute each beneficiary’s share.
Once the amount of each beneficiary’s distribution has been determined, distributions should be made. If you are the trustee of a trust, your distributions may be more complicated. Trusts often call for distributions not to be made as lump-sum payments but on a repeating schedule. A lawyer can help you make distributions on time and in the manner prescribed by the document.