What is Trust Administration?
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What Is Trust Administration?
When a person dies, their finances and belongings go through probate court. This is where a judge will pay off their creditors, and hand out their money and assets to the beneficiaries.
Probate court is generally not a pleasant experience for the family of the deceased. It can cause friction, and be upsetting in a time of grief. To avoid this, many people choose to use trust administration, so that probate court is avoided when someone passes.
Trust administration avoids the need to go in front of a judge. It can also be done in a much shorter period of time, typically a month or two compared to the year or more for probate. This is because it follows a different set of processes and rules to probate, streamlining the whole procedure.
Can It Be Done Without Legal Counsel?
While trust administration could be done without legal counsel unless you have the relevant expertise and legal knowledge it will be unlikely to yield the results you seek. It requires different protocols and procedures. When implemented by someone lacking the experience, it could end up being long and drawn out as a probate case.
Setting Up A Trust
A trust can be set up by someone during their lifetime with an estate planning lawyer, to ensure their wishes get fulfilled once they pass. This trust is often revocable, meaning that it can change and alter if they wish. Once they pass, that trust will change to an irrevocable trust and can not change.
What Are the Three Types of Trust?
There are three main types of trust administration. Each of these governs how the trust is laid out and distributed.
Outright distribution is one of the most straightforward. Beneficiaries of the trust receive their inheritance almost immediately after the death. This is around several months, as the estate planning attorney divides the assets and wraps up the legalities.
One other form is ongoing administration. This is when beneficiaries have yet to get their inheritance, due to age, stipulations, or the inability to manage the funds. This may require ongoing communication with the attorney to check that the trust is being managed until its access is finally granted.
The second one is a cleanup, which occurs when two persons have set up the trust and one passes away. This may require full transferal of the trust to the remaining person, or reallocation and management of the trust altogether.
Finding an Estate Planning Lawyer
Trust administration can offer you peace of mind. It will set your family at ease after your death, and ensure your beneficiaries are well cared for.
When looking for an attorney, Citadel Law Firm should be your first stop. We are an Arizona family law firm with a track record of excellence. Click here for a free consultation and get your affairs in order starting today. Our estate planning attorneys in Chandler can help you with your trust administration.