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Setting up trusts are a good way to avoid probate proceedings. Trusts, unlike wills, are administered without the involvement of probate court. Trust administration ensures that the bank or other trustee is meeting legal obligations. Trust administration is easy when the person who created the trust is still alive and administering the trust, but when they die, it can be complicated.
A trust is a legal document that outlines one's assets and properties, and dictates how such items shall be distributed after one's death. The trust holder may put assets into the trust throughout his or her lifetime with the intention of having these assets go to their beneficiaries in the future, without being subject to probate. In a trust, a third party called a trustee is appointed to administer and manage the trust after the trust holder dies. The trustee then has a fiduciary responsibility to hold and distribute assets in the trust on the behalf of the beneficiaries.
Trust administration is the process of managing the trust, executing the arrangements in the trust, ensuring that the assets are protected, and ensuring that all legal obligations in the trust are being met. While the trust holder is alive, he or she will be responsible for all trust administration until his or her death. Afterwards, the named trustee takes over all trust administration duties. If the trustee fails to perform their fiduciary duties or breaches their obligations under the trust, they can be held personably liable and may suffer legal consequences.
When a trust has been created, there are steps a trustee needs to take to fulfill duties such as investments and management of trust assets. Trust administration can have serious consequences for trustees who fail to perform their fiduciary duties. Under California law, the trustee can be held personally liable for breach of fiduciary duty when failing to render acts of the trustee.
A trustee must fulfill many duties when administering a trust, such as distributing assets, making investments, and managing the trust. Trust administration can become complicated if real estate, brokerage accounts, tax returns and life insurance policies are all also held in the trust. Wills and estate planning lawyers can help with these issues, as they are experienced in trust administration. A trust lawyer will not only help prepare a trust, but he or she can also help the trustee avoid making any mistakes while administering the trust. This can save the trustee from having to take on any personal liability and thus facing any legal punishments.
An estate planning lawyer can help a trustee with real estate, brokerage accounts, bank accounts, tax returns, life insurance policies and other accounting issues. An estate planning lawyer can also help prepare a trust and the common mistakes made by a trustee so that they do not result in personal liability.
Estate planning lawyers understand the complexity of trust administration laws. If you need an experienced estate planning lawyer, contact Attorney Search Network today. We can help you find an estate planning lawyer to assist you with trust administration issues.
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