Trustee Duties

The process of administering a trust can be broken down into the following major steps.

Gathering Assets
The first substantial task of the successor trustee is to review the assets owned by the Trust and collect any additional assets that may flow into the Trust. This process includes reviewing records, submitting your Pour Over Will to probate (if necessary), taking physical custody of trust assets, and valuing the property. Unlike the probate process used in carrying out the terms of a Will, it is not necessary to file an inventory listing for a living trust.

Payment of Debts and Expenses
Before making distributions to the beneficiaries, the successor trustee must also determine what debts and expenses should be paid. The successor trustee is also responsible for resolving claims, successor trustee fees, attorney fees, filing death tax returns, and filing other tax returns. To pay these costs, it may be necessary for the successor trustee to liquidate assets. This authority is generally given to the trustee in the Living Trust.

Distributing of Assets
After the debts and expenses, including taxes, have been paid, the successor trustee needs to make proper distribution of the remaining assets. This is done through distributions to beneficiaries and establishing trust shares.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.