Trustee Responsibilities

The stages involved in managing a trust are as follows: gathering assets, paying debts and expenses, and distributing assets.

The administration of a trust can be divided into the following main stages.

Obtaining Assets

The new trustee’s first significant job is to examine the Trust’s assets and gather any additional assets that may come into the Trust. Reviewing documents, sending your Pour Over Will to court (if required), assuming actual possession of trust assets, and assessing the property are all part of this process. Unlike the succession procedure used to carry out the provisions of a Will, no property description is required for a living trust.

Debt and Expense Payment

The new administrator must decide what obligations and costs must be settled before providing payments to the recipients. The successor trustee is also in charge of claims, successor trustee costs, legal fees, funeral tax returns, and other tax returns. To cover these expenses, the new administrator may have to sell assets. The director in the Living Trust is usually granted this power.

Asset Distribution

After all obligations and expenditures, including taxes, have been settled, the new administrator must distribute the leftover assets properly. This is accomplished through beneficiary payments and the establishment of trust shares.