How Trust Administration Works After Death
A trustee is someone with a legal obligation to manage the trust property for the benefit of the beneficiaries per the terms of the trust agreement. If the settlor dies, the trustee becomes responsible for administering the trust according to the terms of the trust agreement and applicable state law.
If the trustee fails to perform their duties, the beneficiaries may take legal action against them. Hire a trust administration attorney TX to handle your trust litigation matters and help you understand your legal options.
Different Forms of Trust
Different forms of trust can achieve different objectives. Here are the main forms administered in Texas.
A revocable trust is a trust modified or terminated by the settlor at any time. This type of trust transfers property to beneficiaries while the settlor is alive, then changes as the settlor’s needs change.
An irrevocable trust is a trust that the settlor cannot modify or terminate. This trust transfers property to beneficiaries after the settlor’s death. It ensures the property distribution according to the settlor’s wishes.
By a will, it creates a testamentary trust that only comes into existence after the settlor’s death. This type of trust distributes property to beneficiaries who are minors or have special needs.
This trust is also known as an “inter vivos” trust, created during the settlor’s lifetime. It can be revocable or irrevocable and have various purposes, including asset protection and estate planning.
Trust After Someone’s Death
As the settlor, when you are alive, you come up with an estate plan in the form of a revocable living trust. This trust avoids probate, meaning it transfers your assets to your beneficiaries without going through court. But what happens when you die?
This type of trust becomes irrevocable when you die. It means that the terms of the trust are becomes unchanging.
Your successor trustee will take over and follow the instructions you have left behind in your trust agreement. This will include distributing your assets to your beneficiaries according to your wishes.
Settling Trust After Someone’s Death
Wondering how to trust administration works after death?
Once the grantor dies, the successor trustee named in the trust agreement takes over. The first thing this person will do is locate all of the trust assets and determine their value. This includes real estate, investments, bank accounts, and personal property. You will then follow the following steps:
- File the appropriate paperwork with the court. This includes the decedent’s will, if there is one, and the death certificate.
- Notify the beneficiaries of the trust. The beneficiaries have a right to see the decedent’s will and to receive notice of any hearings regarding the estate.
- After the beneficiaries receive such a notice, the administrator or executor will inventory the decedent’s assets. This includes property, bank accounts, stocks and bonds, and other assets that are part of the estate.
- The administrator will then pay any debts the decedent owned, including taxes and funeral expenses.
- If the property is for sale, the trust administrator will oversee that process.
- After fulfilling all debts and all property distributed, the estate will have its closure.
But how long does it take to settle a trust after death? The timeline for settling a trust after death can vary depending on the size and complexity of the estate. Generally, it can take anywhere from six months to two years to settle an estate.
How a Trust Attorney Can Help You
The process of administering a trust can be complex, and it is important to have an experienced attorney to help you through the process.
If you are a trust administrator, contact a trust administration attorney today to discuss your role and what you need to do to fulfill your duties. The Dallas trust attorney can help you understand your role and responsibilities and guide you on how to administer the trust properly.
We also help beneficiaries understand their rights and can help resolve any disputes that may arise. If you know that there are some things suspicious about the distribution of the trust of your deceased loved one, we can help you make the case and resolve it. Contact Vermillion Law Firm LLC to find a reliable trust administration attorney and discuss your case.