First, make sure the grantor is receiving quality care in a supportive environment. A trustee must take their position very seriously as they have legal requirements to fulfill their responsibilities. Estate Planning Checklist | Charles Schwab If youre ready to develop your own trust, consider enlisting a financial advisor to help. Send out Statutory Notice to Beneficiaries. Trust have evolved, however, to the point where it is now common to find a trust in even a relatively simple estate plan. Make a list of your parents' assets, debts, expenses and ongoing bills. A trustee could be appointed for the purpose of bankruptcy, a charity or certain kinds of retirement plans, but the most common is a trust.A trust is a legal agreement designed to control how an individual leaves an estate to their heirs. And anything digital will require MORE passwords to remember! Determine and update the cost basis of each asset at the date of death (step-up in basis). No two trust agreements are identical, meaning the administration of no two trust will be exactly the same. A trustee must manage the funds and assets of the trust with the utmost care. Once the assets are ascertained, the estate trustee will need to protect the assets to the best of their ability. PDF Executor duties checklist - RBC Financial Planning Obtain any information about retirement plans due to beneficiaries. Offered for informational purposes only; not legal advice. Today, many people use a revocable living trust in addition to a will in their estate plans because it avoids court interference at death (probate) and incapacity. Complete documentation and arrange to transfer credit card rewards or other points (RBC Rewards, Aeroplan, Air Miles, Canadian Tire, etc.) There is a duty at common law and under the Trustee Act for estate trustees, executors, administrators, and guardians to keep complete and accurate accounts of the assets under their administration. The taxes and fees will be enormous! You may need to open a special "estate of (the deceased's name)" account for any income received after death. If you are looking for more information on Trusts and Estate Planning, then check out our Main Page on Trusts and Estate Planning. Trustee guidelines Executor guidelines If you have been named executor of a will, these guidelines may help you understand what's expected of you. Once appointed, that individual will be stated in the trust as the trustee. Jack uses a number of tools to assess the organization on culture, leadership, and operating performance. Make an appointment with an attorney to go over the trust document, trust assets, and your responsibilities as soon as possible. Well, if you're in Ontario, you might also be referred to as an "Estate Trustee," but the terms are often used interchangeably. The notice must comply with Probate Code Section 16061.7 and must be sent within 60 days of the date of death. 16 Steps to Settle a Trust and Distribute Assets Outright to Beneficiaries Only spouses can make the portability election. If we choose to create a Last Will and Testament, we are still choosing the State to administer our estate, but we make the decisions about who receives our legacy. You will need to reregister bank accounts under your name as trustee. Being named as Estate Trustee (sometimes referred to as Executor) of someones estate whether the person is a family member or a friend can be both an honour and a challenge. If the request is approved, the court signs the document called Letters Testamentary (if there is a will) or Letters of Administration (if there is no will). Pay any outstanding debts, including credit card bills. If they want to examine the books, they should do so before the distributions so any issues can be resolved at that time. This is the amount you can die with without an estate tax. These matters can include taxation, fiduciary standards, management of securities and trust issues. Utah Code 75-3-107. An individual or bank or trust company that settles the estate of a testator according to the terms of the will, or if there is no will in accordance with the laws of the decedent's estate (intestacy), although a person acting in intestacy may be called by a different name, such as administrator. Partner. Obviously, the person who passed away has great confidence in the person named in the will to be the Estate Trustee. Do not sell or distribute any assets before you meet with the attorney. Keep a ledger of income received and bills paid. Be sure to consider all the duties and responsibilities that come with the role if youre appointed the trustee of a trust or are looking to appoint a trustee for your own trust. There can be other questions and issues that arise during the course of administration, such as what to do with inheritance reserved for a minor or a beneficiary who is under some form of public assistance such as Social Security Disability or Medicaid. Duties and Responsibilities of a Trustee - EstatePlanning.com If there is a will, the original will must be filed with the court along with the other paperwork to start the probate case. The Estate Trustee is the representative designated to carry out the terms of a last will and testament and is tasked with winding up the affairs of the deceased, paying taxes and bills and distributing the residue of the estate to those entitled. The owner of the trust, known as the grantor, must appoint a trustee to administer the wishes outlined in the trust. You also need to know where the income comes from, how much it is, and when it is paid, as well as regular ongoing expenses. If you distribute all the funds right away, it may be difficult to ask the beneficiaries to pay some of the money back when an unexpected bill or expense crops up. Contact life insurance provider. This is a very important task that should not be taken lightly. This is a relatively new requirement that you would usually prepare and file along with the Affidavit of Death of Trustee. If this is filed, the court will schedule a hearing. It is very easy, and there is no court involvement. Locating the will and other important documents. No two trust agreements are identical, meaning the administration of no two trust will be exactly the same. Any person receiving a gift under the will. There is no set timetable for completing a trust administration. (Hopefully, you already know where it is.) Offices in Lehi and Santaquin, Utah. Grantors can also be the trustee themselves, as long as the trust is a revocable living trust. The attorney can also prepare a certificate of trust, a shortened version of the trust that also proves you have the legal authority to act. The primary focus of this page is on procedures when everyone involved is in agreement and cooperating. For example, 15 - 20 years ago, having logins and passwords on bank accounts, social media, and other websites was not on the list. You may even have a request to distribute a specific asset such a real property to a particular beneficiary as part of their overall share. Not all that long ago, trusts were used almost exclusively by wealthy families as a tool to pass down the family wealth while maintaining a certain degree of control over how that wealth is used by future generations. This list of tasks will help you wrap up your loved one's estate. Assets include land, money, investments, valuables and personal effects such as jewelry. Checklist for Executors of a Will | Nolo The trustee normally obtains a tax identification number for the trust, and the trustee will be responsible for filing all fiduciary income tax returns to report the income of the trust. Administering estates | ontario.ca Utah Code 75-3-1201. Below is a checklist to help you navigate the process. It is also flexible. A trust is a legal entity that can own assets. This field is for validation purposes and should be left unchanged. A Checklist for Settling a Living Trust Estate, on A Checklist for Settling a Living Trust Estate, Protect Your Assets and Family: Watch Our Compelling Video on the Benefits of a Living Trust, The AmeriEstate Living Trust Portfolio Documents, Webinar Replay: What is a Power of Attorney and the Importance of Having One, Assets Discovered After Trust Distribution, The Pros and Cons of Adding a Spouse to LLC, The Importance of Settling Trust Debts First: Ensuring a Fair and Responsible Distribution of Assets. There are different kinds of trusts: testamentary (created in a will after someone dies); irrevocable (usually cannot be changed); and revocable living trusts. William M. Jeffs | Utah Estate Planning Attorney - Jeffs & Jeffs You will want to become familiar with the grantors insurance (medical and long-term care, if any) and understand the benefits and limitations. Look to see if there is a list, Personal Property Memorandum, or specific instructions. How to organize and store all of the important documents regarding the family trust as well as the administration and distribution of its assets. You must treat trust beneficiaries the same; you cannot favor one over another (unless the trust says you can). Lodge is an old fashioned legal term for file. The court filing fee is $50. Get the ultimate "just-in-case" checklist for Parents, Families, Trustees and their trusted advisors. When you provide this notice to DHCS, they will send you an estate assets questionnaire to complete and return. After you have reviewed the terms of the trust document and all of the grantors individual and trust assets with the attorney, you will know if a probate proceeding is necessary. The indexed exclusion amount for 2017 is $5,490,000. Many people choose to create trusts to protect the interest of their beneficiaries. Norman Pickell and Michael Ferguson practice primarily in the areas of real estate, wills and estate planning, business and corporate law, estate administration and powers of attorney. Take an inventory of trust assets to determine which assets are titled in the trust and which assets may need to be administered as part of the decedents probate estate. Utah Code 75-3-201. You may need to put together a budget. If a probate proceeding is required, you will need to collaborate with the personal representative of the grantors estate to ensure that any assets that should be distributed to the trust make it into the trust. SeeUtah Code 75-2-101 et seq. If you have been named as successor trustee on a trust, the following checklist may serve as a guide of some of the duties you may perform in settling the trust and carrying out the wishes of the decedent. Have the doctor document the incapacity as required in the trust document. Find the Living Trust and the original Will. Also, file any claims for social security benefits. A trust settlement checklist is a must-have if you have been named as successor trustee on a trust. This must be sent to the main department office in Sacramento, not mailed or delivered to a local branch office. Obtain a Federal Identification Number from the IRS. The goal is for the Grantors to engage their advisors to develop a carefully and thoughtfully prepared funeral and estate plan, to help reduce the family's emotional and financial stress. Copyright 2017 - Valente Law, LLC - https://valente-law.com/privacy-policy-terms-conditions/ - This entire website may be considered ADVERTISEMENT MATERIALS. Titles must be changed from the grantors individual name to the name of the trust. Disclaimers 5. For the benefit of our Trustee clients, to answer the question of "what do Trustees need to do?" we have compiled the following checklist and outline for the Trustee to follow: The Trustee has the following general Mandatory Duties: Duty to Obey Terms of Trust; READ THE TRUST! Any creditor of the person who died, if 45 days have passed since the death. You cannot mix trust assets with your own. You can also order death certificates through your states vital record office. You will need to attach an original Death Certificate to the Will. Collect debts due the decedent. Contact financial institutions to obtain access to the decedents bank and financial accounts. This Estate Checklist quickly highlights the key responsibilities and tasks associatedwith the death of a loved one, with an emphasis on the duties of the estate executor (also known as the personal representative). Locate estate planning and financial documents including, but not limited to, wills, trusts, powers of attorney, financial statements, and tax returns. Consult with the decedents CPA to prepare the decedents final tax return and the trust tax return. This document may also be known as the declaration of trust. If the trust document is silent as to your compensation, the attorney will determine your compensation based on the states case or statutory laws. Offer to help notify the grantors employer, friends, and relatives. If the grantors incapacity is expected to be lengthy, a guardian (of the person, not assets) may need to be appointed by the court. Serving as the successor trustee of a trust is not a role to be taken lightly. no application for appointment of personal representative has been filed. A Checklist for Settling a Living Trust Estate - AmeriEstate The personal representative is appointed by the court to handle and settle the decedent's estate. Separate the trusts assets and property from the trustees property. (Form SS -4) Notify the IRS of the authority of the executor to act for the decedent. Yes, trustees are entitled to reasonable compensation for their services. Formal probateis the process for asking the court to appoint a personal representative with a hearing, usually because there is some disagreement about who should be the personal representative or how the estate should be administered and the interested parties need to the court to make decisions. These tasks are specific to a trust administration in California, although most of these steps are applicable to a trust administration in any state. submit personally to the jurisdiction of this court in any proceeding relating to the estate that may be filed by any interested person. Verify and pay all bills and taxes. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying (except where permitted as indicated on individual pages in Sections 5 and 6), recording, or by any information storage and retrieval system, without expressed permission in writing from the publisher. Apply for disability benefits through the grantors employer, social security, private insurance, and veterans services. Download our Avery 10-Tab Template #11072 (PDF), Download our Avery 10-Tab Color Template #11072 (PDF). AmeriEstate offers trust administration services designed to assist successor trustees with the legal requirements and formalities for a fraction of what most attorneys charge. This web page covers only the informal probate process, when all parties are in agreement and cooperating. By teaching how to identify value drivers, how to measure the company's ownership culture, how to form teams, and to develop leadership through team empowerment, his client's success increased. This changes the probate from informal to formal. A person named as an estate trustee in a will is not required to act as the estate trustee. Most successor trustees can benefit from reviewing the Trust and Trust assets with an experienced professional.