Law Office of Rick Todd Blog

Thursday, June 28, 2018

Trust Administration: Advice for a Clear Plan

Trust administration is a process by which assets can be transferred from the deceased to the beneficiaries without having to pass through the court. The trust administration process should be less costly so beneficiaries can receive a more substantial inheritance. It should also be a seamless and private process since there is no need to involve the court, unless a problem arises. Many steps are required to safeguard an effective trust administration in Columbia, MD. It is recommended you work with a trust attorney to help simplify the following steps of a trust administration process.

Give Notice

The trust administration process commences with a mandatory notice to all beneficiaries. After receiving notice, the beneficiary has a certain amount of days, depending on the jurisdiction. For trust administration in Columbia, MD, the beneficiary has 120 days to file a trust contest. If no contest is filed within this period, the beneficiary may surrender his or her ability to file it.

Obtain Titles

If the trust holds real property, the next step is to bestow title in the successor trustee to ensure that the property will be handled according to the settlor's wishes. This step involves the transfer of the real property's title to the new trustee. A change of ownership form is usually recorded simultaneously with the affidavit. A trust attorney is recommended to help prepare the necessary documents to ensure the real property is transferred to the right beneficiary.

Transfer of Finances

After obtaining the real property titles, the trustee will identify all other trust assets, such as investments and bank accounts, then the transfer the title of those assets into the name of the beneficiary. For a trust administration in Columbia, MD, the trustee must first acquire the trust's federal tax identification number, so that any income earned from the trust assets is accurately reported to the IRS.

Pay Debts and File Tax Returns

In the next step, the successor trustee is required to pay all the settler's debts and satisfy his or her liabilities. Taxes can be difficult to handle because both estate and income taxes may be owed if the estate is quite large. It is highly recommended that you work with an attorney to determine the federal estate tax return for the deceased; the trustee needs to calculate the value of the decedent's estate.

Distribute Trust Assets

After the trust assets have been identified, debts paid, liabilities fulfilled, and tax returns filed, the trustee should distribute the remaining trust assets. Distribution will depend upon on the terms drawn by the trust documents and any applicable state law.

At the law offices of Rick Todd, we can assist you with the trust administration process. We value our clients, and we act in the best interest of all the beneficiaries. Contact us to learn more or book an appointment with our trust administration in Columbia, MD. We look forward to being of help.


Archived Posts


The Law Offices of Rick Todd has offices located in Columbia, Chevy Chase, Fairfax, Virginia, and Maryland and serves clients throughout Clarksville, Columbia, Ellicott City, Fulton, Rockville, Bethesda, Potomac, Laurel, Howard County, Montgomery County, and Washington D.C.

© 2024 The Law Offices of Rick Todd | Terms & Conditions
5850 Waterloo Road, Suite 140, Columbia, MD 21045
| Phone: (443) 720-7500
1765 Greensboro Station Place, 900, McLean, VA 22102
| Phone: (443) 720-7500
2 Wisconsin Circle, 700, Chevy Chase, MD 20815
| Phone: (443) 720-7500

Offshore Trusts & Asset Protection | Estate Planning | Estate Tax Planning | Estate Planning with Wills | Advanced Estate Planning | Religious Estate Planning | Planning for Children | Pet Trusts | Probate / Estate Administration | Special Needs Planning | Trusts & Estate Planning | Business Succession Planning | Residential Real Estate | Divorce Mediation | Mediation | Attorney Profiles