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© 2017 Palecek, Morrison & Associates, LLP.

514 Via De La Valle, Suite 208

Solana Beach, CA 92075

P: (858) 771-0776

TRUST ADMINISTRATION

Proper administration of the Trust, both during the Trustor’s lifetime and after death, is necessary and important if the desired goals and intentions of the Trustor are to be achieved. A properly funded Trust provides an excellent vehicle for the quick and simple transfer of assets to the intended beneficiaries upon death, without the delay and expense of a probate or other court proceeding.

 

However, upon death, trust administration includes much of the following:

 

  • Immediate review of the Trust, Will and assets by an attorney to determine any tax implications or requirements that are time sensitive.

  • Preparation of an inventory of all property owned by the Trustor, including property that will pass outside of the Trust, property that will be transferred to the Trust by Will, and property titled in the Trust.

  • Procurement of date of death values of all property. This may include professional appraisals of certain real property.

  • Preparation of a list of all debts at the date of death, including funeral and last illness expenses, mortgages and liens on real property.

  • Prudent management, protection, and investment of the property, including maintenance of appropriate property and liability insurance.

  • Payment of various debts and Trust expenses.

  • Preparation and filing of California and federal estate tax returns.

  • Preparation and recording of affidavits for the real property to establish the Successor Trustee, notification of the county assessor of the changes in real estate ownership resulting from the Trustor’s death, and filing documents required to avoid property tax reassessment.

  • If appropriate, allocation of assets to Subtrusts.

  • Making Trust distributions to beneficiaries, including distributions of income to a surviving spouse or an income beneficiary, as determined by the terms of the Trust.

  • Preparation of periodic written reports to the beneficiaries on the financial status of the Trusts when appropriately requested by them.

 

 

 

The importance of proper Trust Administration cannot be overstated.

 

The failure to properly fund Subtrusts, prepare fiduciary tax returns, properly allocate assets, prepare Trust accountings, make prudent investments, or make Trust distributions can have disastrous consequences. If you are currently serving as a Trustee, or named as a Successor Trustee, it is crucial that you obtain advice from qualified professionals who are familiar with current tax law, current developments in Trust law, and the administration of Trusts.

 

 

At PMA LAW, we can help every step of the way, so that you and your family can focus on what is most important: coming to terms with your loss and moving on with your lives. Contact us today for an initial consultation.

 

 

 

 

 

 

 

 

 

 

 

 

 

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