You are the Trustee?
Many Trusts are set up in a way that the Trustee can “Administer” the trust without additional professional assistance. In those cases, here is a sample “checklist” of those tasks that need to be completed:
- Obtain legal documents and records necessary to administer the Trust and certify the validity of the Trust when dealing with third parties. This includes signing a Certificate of Trust.
- Obtaining a tax ID number for the trust www.irs.gov
- Collecting monies owed to the trust
- Opening and maintaining a Trust checking account
- Making claims on an life insurance, annuities, bank accounts, stocks, mutual funds, or any other assets in which the Trust is names as beneficiary.
- Tracking any other assets owned by the Trust’s owner, such as assets that may require probate if they were not transferred into the Trust.
- Maintaining inventory of the Trust property.
- Paying debts and expenses of the Trust.
- Managing Trust assets and investments
- Maintaining insurance on assets that will remain in trust
- Obtaining appraisals or valuations of Trust assets if necessary
- Selling Trust property —- if the trustee decides to sell rather than distribute assets “in-kind” to the beneficiaries
- Keeping accurate records of Trust income and expenditures.
- Filing tax returns. Final 1040 for the deceased. Filing 1041 income tax returns for the Trust if taxable income is more than $600.00. Issuing K-1’s on distribution to heirs.
- Providing a Trust accounting and other information to Trust beneficiaries unless beneficiaries waive the right to see any accounts.
- Distributing Trust income and property to beneficiaries
- Executing documents to transfer title to Trust property to beneficiaries, such as deed for real estate.
Completing a Trust Administration can be complicated and time consuming, especially if you do not live in the vicinity of the Trust’s assets. In these cases, please seek help from an experienced Estate Planning/Elder Law Attorney.
Carolina Estate Counsel offers free phone consultations for any of your N.C. Trust Administration questions.
rick@carolinaestatecounsel.com for an appointment today. www.carolinaestatecounsel.com
Kevin Huston, Estate and Elder Law Attorney
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Carolina Estate Counsel offers free consultations in your home, senior living community, your place of business or financial advisor’s office. We offer legal advice only and do not sell annuities, securities or insurance products.
