The estate planning process does not end when a person creates a will or funds a trust. Often, there are essential administrative tasks that must occur during that person’s life or shortly after their passing. One of those tasks is trust administration, which is the process of carrying out the wishes outlined in a trust.
If you have been tasked with administering a trust, a dedicated attorney could help you through this process. A Boston trust administration lawyer could advise you on properly allocating assets according to a trust’s requirements.
A trust allows a trustor (the person who creates the document) to explain how they want to divide their property after their passing. Trust administration refers to a trustee’s (the person the trust is left to) management of assets in accordance with the terms laid out in the document. This role is designed to ensure the trustor’s wishes are respected and that their assets are secured for the future.
A trustee is expected to oversee the distribution of assets in a trust in a way that is efficient, cost-effective, and true to the wishes of a trustor. Administering a trust can be a stressful process without the assistance of a knowledgeable attorney.
While probate occurs in open court, the trust administration process occurs mainly in private. While this can help protect the privacy of those involved, it can also lead to missteps or even fraud due to the lack of oversight. A trust administration attorney in Boston could guide you through this process and help avoid any conflicts of interest.
Various trust administration errors could lead to severe implications for a trustee. Implications may include not only financial liability for any errors that cost beneficiaries but potential criminal consequences as well. A trust administration attorney in Boston could help avoid these errors.
Part of administering a trust is paying certain outstanding tax debts. There are various taxes that could arise during the administration process. If the trustee distributes the funds of a trust before paying these taxes, they could face significant consequences from the government.
Trustees have specific fiduciary duties that they must adhere to when administering the trust. If they make a decision that is not in their fiduciaries’ best interest, the consequences could be significant. Sometimes these issues are unintentional, like mixing trust assets with a trustee’s private account for the sake of convenience.
However, these kinds of errors can look like fraud or abuse to those on the outside looking in. An attorney could not only help avoid any violation of fiduciary duty but also of any appearance of impropriety.
Disputes among potential beneficiaries are unfortunately part of trust administration. Dealing with disputes shortly following the death of a loved one can be incredibly taxing.
Sometimes the trustee will catch the ire of a beneficiary unhappy with how the assets of the trust were distributed. If the trustee becomes the target of a lawsuit, an attorney could help them fight back.
As a trustee, you several legal requirements and duties. Failure to follow those requirements could prevent a trustor’s wishes from being carried out and can cause undue stress.
A Boston trust administration lawyer could remove much of the confusion and strain during this process. To learn more about how our skilled legal team could assist you with trust administration, call today.