Trust Administration FAQ
February 29, 2012 By Deborah Sexton Law Office, PA
Whenever someone establishes or creates a Trust, the Trust property must be managed and looked after through a process known as Trust Administration. Depending on the kind of Trust involved, Trust Administration can be fairly simple or extremely complicated.
Question 2: Who administers a trust?
Every Trust is managed by someone known as a Trustee. The person who creates the Trust chooses who will serve as a Trustee and who will receive the benefit of the Trust property, a person known as the beneficiary. The Trustee can be anyone, but the more complicated the Trust the greater the need for a Trustee who is familiar with the Trust Administration process. This is why institutional Trustees such as law firms, banks or Trust companies are often chosen to serve as a Trustee.
Question 3: Does the court get involved?
A Trust is a private creation which does not have to be registered with a court. In fact, many people create Trusts specifically to avoid the requirements of having to go before a Probate court in order to transfer property after they die. However, Trust law differs between states and you should always consult a qualified estate planning attorney for any questions you have about how your state courts are involved in the Trust administration process.
Question 4: What is a fiduciary duty?
The Trustee has a specific relationship to the beneficiaries and the Trust, known as a fiduciary duty. This requires the Trustee to act in the beneficiary's best interests as well as follow all the terms of the Trust. In order to ensure a Trustee meets this fiduciary duty, they often hire attorneys to provide them with legal counsel.
ABOUT THE AUTHOR: Deborah Sexton
Experienced estate planning attorneys Fayetteville AR of the Deborah Sexton Law Office PA offers estate planning and business planning resources to residents of Fayetteville AR.
Copyright Deborah Sexton Law Office, PA
More information about Deborah Sexton Law Office, PA
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Every Trust is managed by someone known as a Trustee. The person who creates the Trust chooses who will serve as a Trustee and who will receive the benefit of the Trust property, a person known as the beneficiary. The Trustee can be anyone, but the more complicated the Trust the greater the need for a Trustee who is familiar with the Trust Administration process. This is why institutional Trustees such as law firms, banks or Trust companies are often chosen to serve as a Trustee.
Question 3: Does the court get involved?
A Trust is a private creation which does not have to be registered with a court. In fact, many people create Trusts specifically to avoid the requirements of having to go before a Probate court in order to transfer property after they die. However, Trust law differs between states and you should always consult a qualified estate planning attorney for any questions you have about how your state courts are involved in the Trust administration process.
Question 4: What is a fiduciary duty?
The Trustee has a specific relationship to the beneficiaries and the Trust, known as a fiduciary duty. This requires the Trustee to act in the beneficiary's best interests as well as follow all the terms of the Trust. In order to ensure a Trustee meets this fiduciary duty, they often hire attorneys to provide them with legal counsel.
ABOUT THE AUTHOR: Deborah Sexton
Experienced estate planning attorneys Fayetteville AR of the Deborah Sexton Law Office PA offers estate planning and business planning resources to residents of Fayetteville AR.
Copyright Deborah Sexton Law Office, PA
More information about Deborah Sexton Law Office, PA
View all articles published by Deborah Sexton Law Office, PA
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
