I Was Named as Trustee - What Are My Duties?

What are a Trustee’s duties after the death of the Grantor?

With a properly drafted and funded trust, the administration process can be straightforward. However, just as often, it can be easier said than done. Trust administration can be complicated by the extent and nature of the trust assets. It can also be complicated if the terms of the trust are unclear or if there is a question about how to properly administer an asset.

To avoid the risk of incurring liability for any inadvertent mistakes and to ensure that you are aware of the full extent of your responsibilities as trustee, it is important to consult with a knowledgeable trust attorney before beginning administration.

Some of a trustee’s responsibilities include:

1. Locating important documents – Find and review the trust document, original will, death certificate, insurance policies, deeds, and other essential documents

2. Providing notice to trust beneficiaries and heirs – Notify beneficiaries and heirs of the trust administration

3. Identifying assets – Prepare a list of the deceased’s assets

4. Protecting assets - Secure and safeguard all trust assets until they can be distributed to the beneficiaries

5. Maintaining the accounting – Maintain trust accounting including a record of all deposits, expenses, and distributions from the trust

6. Identifying outstanding financial obligations – Determine if debts or liabilities are owed, make a list, and arrange to pay them off

7. Filing tax returns – Consult with a tax preparer or CPA to discuss preparing, filing, and paying any necessary estate taxes

8. Preparing a trust distribution plan – Create a plan for distributing all trust assets to the beneficiaries which reflects the intentions of the trust

9. Distributing trust assets – Distribute the trust assets according to the terms of the trust and obtain receipts from all beneficiaries once distributions are complete

What are the 6 main trust administration steps that a Trustee must follow?

The time required to complete administration of a trust can vary depending on the complexity and taxable status of the trust assets. Typically, it can take from 3-6 months to begin distributing assets to beneficiaries. However, it isn’t unheard of for administration to take over 12 months to complete.

Legacy Law Firm is here to assist North Carolina trustees navigate every stage of the trust administration process.  Working together, we will ensure things go as smoothly as possible and that all trust assets are distributed according to the grantor’s wishes. Contact us today to discuss how we can guide you through the trust administration process.