Trust administration is a legal process that occurs after the death of a trust-maker. It involves managing and distributing the assets of a trust according to the instructions provided in the trust document. The process can be complex, and it's important to understand the steps involved, particularly if you're acting as a trustee. Administration involves many tasks, especially where various types of investments are involved as well as multiple beneficiaries. Some of these tasks may be time sensitive.
At Hurley Re, we have many years of experience administering a variety of trusts for clients in Bend, Redmond, La Pine, and the surrounding communities. Our team has a well-established base of knowledge and works with the details contained within the trust document to ensure that the intentions of the trust-maker are carried out and all legal tasks are performed per state law.
Reserve your initial consultation with one of our Bend trust administration attorneys. Call us today at (541) 933-4688 or submit your contact details online.
As mentioned above, many tasks may need to be completed in the administration of a trust.
Upon your death, a revocable living trust becomes irrevocable. The terms are set and unchangeable and your successor trustee(s) must follow the terms and distribute your assets according to your wishes.
- Tax Filings. An irrevocable trust is a new tax entity that will need a new tax identification number for tax reporting purposes. Assets in the trust are transferred from the decedent’s social security number to the trust’s tax identification number. The successor trustee takes control of all the decedent’s assets and pays all the debts, taxes, and liabilities. Then, he or she distributes the assets to the named beneficiaries. Successor trustees must also ensure that income tax returns are filed. The decedent’s estate must file a final income tax return (Form 1040) and the irrevocable trust must file a fiduciary income tax return (Form 1041) for income earned after the decedent’s death until the trust is terminated and distributed.
- Creditors. One of the responsibilities of the successor trustee is to pay all unpaid bills, debts owed to creditors, income and estate taxes, attorney fees, and tax preparation fees.
- Trustee Compensation. A successor trustee can also take a reasonable fee for his or her time in administering the trust. The money the successor trustee receives is taxable income.
- Accountings. A successor trustee must send an accounting to all the beneficiaries on an annual basis and upon final distribution. The accounting must include the beginning balance of all the accounts at the date of the decedent’s death and all the withdrawals and deposits with an explanation for each transaction. The accounting must reconcile with the distributions to each beneficiary. We recommend having the beneficiaries sign a receipt of his or her final distribution if you are a trustee making a final distribution.
- Beneficiaries Rights. Beneficiaries have the right to receive a copy of the Last Will and Testament and the decedent’s trust documents. Beneficiaries may also hire attorneys to represent them as a beneficiary of the trust. Beneficiaries may object to the accounting, payment of successor trustee compensation, or any other expenses that were deducted from the trust.
“The attorneys at Hurley Re are hard working professional and caring.” - Joy R.
“They helped us figure out the best documentation based on our needs. I highly recommend!” - Gail L.
“He went out of his way to provide the best assistance possible while I had to address a challenging matter.” - Luisa S.
In many situations, the services of a law firm can be invaluable for proper trust administration. For example, if the trust is complex or contains a substantial amount of assets, if there are disputes among beneficiaries, or if the trustee does not feel comfortable handling the administration alone, legal assistance is often essential.
Our law firm can assist in various ways throughout this process. We can provide advice and guidance at every step, ensure all legal requirements are met, help resolve any disputes, and more. Our proficiency in Oregon trust administration means we understand the specific laws and procedures that apply, which can vary significantly from other states.
What sets our team apart is our combination of deep legal knowledge and a commitment to personalized service. We understand that trust administration can be a difficult and sensitive task, especially following the loss of a loved one, and we strive to make the process as smooth and stress-free as possible for our clients.
Connect with Hurley Re today for the help you need.