Source: https://dianebrown.com/estate-trustee-administration-how-to-part-1/
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Every Estate Trustee Must Know - PT 1 | Diane M. Brown
Estate Trustee Administration :101- Part 1
Categories: Estate Planning, Trust and Estate Attorney
As we begin Part 1 of Estate Trustee Administration :101, let’s look at what happens when you get that phone call that says, “As the Trustee of your Aunt What’s-her-name’s estate, I need to inform you that it’s time to do all those things we talked about five years back!”
Wow! There are all sorts of important duties that are part of the administration of an estate. Would you even know where to start? In case you are ever asked to become someone’s trustee or, upon the death of a friend or family member are reminded that you are one, this article will help you get started and ultimately set your mind at ease.
Every Estate Trustee Must Know This
The first thing you want to ask your attorney is if there is compensation for your time as Trustee. If a friend or family member designated you as trustee, they likely did not want this to be done on your own dime. They trusted you implicitly and valued your ability; they would have wanted you to be reasonably compensated for time spent looking after their affairs.
Many estate trustees are surprised and thrilled to find out that most of the time there is remuneration. The truth is that it takes time to handle the duties of a Trustee, and it is a rare instance that compensation is not available. It’s ok to ask about it. The answer is “yes,” nearly all the time!
Estate Trustee – Your 15 Main Duties Are as Follows
Take possession of all assets of the trust
Send notices to all entities and beneficiaries of the trust estate
Decide if you will plan to sell/liquidate estate assets
Set up an estate bank account – IRS will provide an ID Number
Pay all funeral bills or reimburse the person/people who paid them
Pay any debts/expenses of the Estate (excluding secured debts)
Collect all dividends, interest, and other income
Deposit the proceeds of that income in the estate account
Keep a careful accounting of all receipts and disbursements
Prepare the accounting, and send it to the beneficiaries
Maintain proper insurance on the estate property
File all tax returns as related to the estate
Pay all taxes for the decedent and the trust
Distribute trust estate to the beneficiaries as set forth in the trust document
Move #15 to the #1 Spot… See Your Attorney!
As an Estate Trustee Where do I Start?
There are so many things that need to be done after a Settlor dies, several of which fall to the Attorney to do. This list is only covers a few of the duties, please know that there are additional things that do not appear on this list. For that reason, it is really best to make an appointment with your attorney.
If it happens to be the middle of the night and you need to know more information before hitting the hay, the Trust Administration area of our website has a more complete overview of things you’ll want to have handled ASAP. Take a look, read it over, leave a voicemail for your attorney, put a good friend on speed-dial and get a good night’s sleep. You will get through this.
Part 2 – Check back on Tuesday, November 11th when we look at: “What Makes a Successful Estate Trustee?” – Estate Trustee Administration :101- Part 2.
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Estate Trustee Administration :101- Part 2 →
Every Estate Trustee Must Know - PT 2 | Diane M. Brown, Esq. - November 12, 2014
[…] 101 we’ll look at what makes a Successful Estate Trustee and what to do as you navigate the 15 Main Duties discussed in Part 1 of this series. I won’t sugar coat things, sometimes deceased relatives can […]