What Does a Trust Administrator Mean?

Trust administration refers to the management and execution of a trust after it has been established. A trustee has a fiduciary duty to manage the corpus (property in the trust) in the best interests of the beneficiary. Usually, when a trust is first created, the settlor (person who creates a trust) and the trustee are the same person. So, the trustee manages the corpus just like it was his/her own property, except the trust legally owns that property and the trustee is somewhat limited by the fiduciary duty. We examine some key trustee responsibilities below.

A St. Petersburg trust administration lawyer is a vital partner in these matters. Establishing the right kind of trust for the right kind of beneficiary is just the beginning. An attorney also continually works with trustees to help ensure that they fulfill their legal and ethical responsibilities. A breach of trust is a very serious matter and can result in a significant liability judgment. In this area as in most others, an ounce of prevention is usually worth a pound of cure.

Asset Management

The trustee must manage, protect, and preserve the trust’s assets. If the trust is an inter vivos (living) trust, the assets can change significantly. But the asset management responsibility never changes. This responsibility often includes overseeing investments, real estate, business interests, or other property that may be held by the trust.

Distributions

The trustee is responsible for making distributions to the beneficiaries as outlined in the trust document. These distributions may be in the form of income, principal, or both, depending on the terms set by the settlor. Timely distributions are essential. Even a slight delay can breach the trustee’s fiduciary duty.

Tax Filings

The trustee may need to file tax returns for the trust, including income taxes, estate taxes, or other required filings. Trustees are responsible for ensuring the trust is compliant with tax laws. If a trustee hires an accountant or other outside professional to handle tax filing, liability is uncertain, because of Florida’s complex joint and several liability laws.

Basically, joint and several liability shifts the blame from one entity to another, such as from a trustee to a tax preparation firm.

Records

Maintaining accurate records of all financial transactions, distributions, and decisions made during the administration of the trust is just as essential as timely distributions. Usually, it’s a bad idea to rely on a third party, like a bank, to maintain these records. Trustees, often with the assistance of a St. Petersburg trust administration lawyer, should keep specific kinds of financial records.

Follow the Instructions of the Trust

The trustee must adhere to the trust’s specific instructions, which can include anything from providing for the care of a beneficiary to distributing assets under certain conditions or timelines. This responsibility is usually the easiest one to keep, because as mentioned, the trustee usually prepared the trust documents.

Report to Beneficiaries

The trustee is also typically required to keep beneficiaries informed about the status of the trust, including how assets are being managed and what distributions are being made.

Work With a Dedicated Sarasota County Lawyer

Proper estate administration is just as important as proper trust creation. For a confidential consultation with an experienced elder law attorney in Lakewood Ranch, contact Drude Tomori Law. The sooner you reach out to us, the sooner we start working for you.

Source:

consumerfinance.gov/ask-cfpb/what-is-a-fiduciary-en-1769/