The trust administration process is a process that takes place when a deceased person has created a trust before he passed away. The process is an alternative to the probate process that can facilitate the timely transfer of the deceased person’s assets that were held in the trust. The person who created the trust is called a settlor, and the settlor designates a trust administrator who will be in charge of overseeing the entirety of this trust administration process.
Parman & Easterday can provide invaluable assistance during the trust administration process. Our legal team will work closely with the trust administrator to fulfill his obligations and to facilitate the transfer of trust assets to new owners. Our firm can also provide representation to heirs or beneficiaries who are concerned about protecting the inheritance they will receive that was left in a trust.
To find out more about the many ways in which our firm can assist with all aspects of trust administration, give us a call. You can also learn more about how the trust administration process works by browsing answers to frequently asked questions below.
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The trust administration process takes place when a trust creator made a trust, transferred assets into it, and passed away. While assets are typically transferred through a formal probate process, assets held within a trust do not have to go through probate. Instead, a trust administrator who was chosen by the trust creator will be in charge of administering the trust. The basics of trust administration involve providing notice to interested parties, complying with tax obligations, taking care of trust assets, and taking the necessary steps to facilitate the formal legal transfer of trust assets to new owners named in the trust.
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Assets in a living trust do not pass through probate. Instead, when a settlor creates a living trust, all of the assets that the settlor transferred into that living trust will pass through the trust administration process. The trust administration process can be more private, less costly, and quicker than the probate process. It also does not require court involvement to complete the trust administration process, unless a problem arises. The ability to avoid probate is one of the key benefits associated with the creation of a living trust.
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When a trust has been created and trust assets transfer through trust administration instead of through probate, you can take advantage of all of the benefits of avoiding probate. These benefits include saving money, saving time, keeping financial affairs private, allowing assets to more quickly transfer to heirs so they can be managed by new owners, and allowing assets to transfer outside of the court process. When a death has occurred and family members are left coping with grief, the last thing they want to have to deal with is the costs and complexity of going through probate proceedings. Trust administration means that this process isn't needed to transfer the assets that the trust owns.
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Trusts can help protect your heirs in many ways. One big benefit is that your heirs or beneficiaries will not have to wait months and months for an inheritance. The probate process is a very time consuming process that can take around a year, or sometimes much longer if any problems arise during probate. A substantial percentage of the value of the estate could actually be lost because of the costs associated with the probate process.
The trust administration process is faster and costs less so heirs or beneficiaries can get fast access to the wealth they inherit. This is vital both if the assets need to be carefully managed by new owners, and also if the heirs or beneficiaries are depending upon an inheritance because the person who died was a primary breadwinner.
Trusts also help to keep assets safe so they aren't lost due to high nursing home care costs, creditor claims, estate taxes or other potential sources of loss. Not all trusts provide the same protection, so it is vital to make smart choices during the trust creation process so you can select the right kind of trust that provides the protections you expect.
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