HTML clipboard Revocable Living Trust
Administration
- What Happens After Death?
Many people think that if they use a Revocable Living Trust, then when
they die, there is nothing left for their family to do.
As a practical matter, the same work that is needed with a probate is
needed to administer a living trust after death – except there is no
supervision by the court.
Sometimes the court acting as a referee to keep the family from fighting
is a good thing. However, if you have chosen to pass your assets to your
family with a Revocable Living Trust, hopefully the trustee will handle
winding things up correctly. If your family has concerns about the trust
administration process as it is progressing, it may be harder for them
to get answers than it would be in a probate setting. That is because in
a probate, if things are not proceeding properly it is easier to get the
court to intervene than it is in the trust administration process.
You successor trustee’s job after your death is to follow the directions
you have left in your Revocable Living Trust regarding the distribution
of your assets.
Just like in a probate, your successor trustee has to locate, gather up,
value and inventory your assets. In some cases, the trustee will also
need to sell the assets. In other cases, he or she can distribute assets
"in kind” without liquidating.
Just like in a probate, your trustee also has to identify and pay your
creditors and your trustee has to file and pay all applicable income and
estate taxes. Of course, all such payments are made from your assets.
Then your trustee needs to follow your directions spelled out in your
trust about how to make distributions to your heirs. You may have
directed that specific assets go to specific people. You may have
provided for different percentages of your trust estate to go to
different people. You may have directed your successor trustee to
continue your trust for the benefit of some or all of your heirs.
If you have directed in your trust that all or part of your Revocable
Living Trust will continue after your death, this may be because of your
concern about an heir losing his inheritance through divorce, to
creditors, or maybe because of disability or addiction problems. If your
trust is continuing after your death, then your successor trustee needs
to follow your directions in the trust. You will have set out under what
circumstances the trustee is to make distribution of the trust income
and/or principal to your heirs.
In all trust situations, your trustee will need to understand his
fiduciary duties with regard to investing the trust assets and his
liability for not doing so properly.
Typically, an attorney knowledgeable about probate and trust
administration should be hired to help your successor trustee with the
trust administration process.
Elizabeth A. Perry, a member of the
National Academy of Elder Law Attorneys, has been helping Clark County
seniors with their estate planning needs since 1976. Her practice
emphasizes estate planning, probate, guardianships, and Medicaid
planning. She can be reached at (360) 816-2485.
www.RevocableLivingTrustsLawyer.com
©Elizabeth A. Perry
(The above should not be construed as specific legal advice and is
intended for general information purposes only.) |
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