What You Need to Know About Trust Administration (Part Two)

4. Marshal and Inventory Assets

 

After reviewing the estate planning documents, you will need to identify your loved one's assets, the assets' values at the time of death, and obtain appraisals, if necessary. If there is any real property, you will need to decide how you want to deal with it, by either selling it or keeping it. You will need to get a Tax Identification Number for the IRS for the Trust, open a checking account in the Name of the Trust with the Tax Identification number naming you as Trustee, and prepare a Certification of Trust form, which you will need to give to the banks for them to add your name as Trustee of the Trust accounts with the Tax Identification Number.

 

5. Pay Debts and Taxes

 

You will need to identify any debts, liabilities, creditors, or recurring payments and pay what is needed from the Trust assets. You should communicate with a CPA or an Accountant to determine what, if any, taxes are owed on your loved one's estate now or will be owed in the future. You will have to file tax returns for your loved one and their estate.

 

6.  Distribution of Assets to Beneficiaries

 

Any specific gifts of cash or property identified in the estate planning documents need to be distributed to the beneficiaries. After these specific distributions are made, the rest of the trust estate can be divided and distributed to the designated beneficiaries. When completing these distributions, you must determine what paperwork is needed to legally transfer any assets.

 

7. Accounting to the Beneficiaries

 

You, as the Trustee, are required to account to the beneficiaries. As such, you should keep track of all expenses you incur as a result of administering the estate. This includes keeping a schedule of principal and income, liabilities, receipts, expenses. disbursement, and the amount needed for compensation to you, as the Trustee.

 

Administering a Trust on your own can be complex, especially with keeping track of deadlines and other legalities. Contact the attorneys at M.S. Domingo Law Group at (925) 891-5006, for help in answering your questions and walking you through this process.