Estate Administration Walnut Creek, CA
The average person has had little experience dealing with Estate Administration in Walnut Creek, CA and often has many questions upon becoming a trustee for the first time.
What is Estate Administration?
Estate Administration is created out of the need to administer the assets of a decedent that did not have the assets registered in the name of a trust. This happens when the decedent had a will (or did not have a will) and owned valuable assets that now need to be distributed to the rightful beneficiaries.
What to know about Estate Administration in California
This article will provide a general overview of how trusts work. Learn about the duties/responsibilities of the person that is acting as Trustee of a trust or Administrator of an estate.
Through our experience in helping people administer trusts and estates, we have found that many individuals have unreasonable expectations concerning the way living trusts operate following a death. It’s true that a living trust drastically reduces the costs and delays involved in passing on assets at death. A living trust accomplishes this feat by avoiding probate, which is a court case where a judge supervises most actions that take place in the administration of an estate.
Trust and Estate Administration in California can be very time consuming. it will require patience, persistence, communication with beneficiaries, organization and in the end it can be very rewarding.
When the person who made a trust dies, the trust needs to be administered by the trustee named in the document in order to manage trust property according to the trust document’s terms and for the benefit of the beneficiaries after the settlor’s death.
You must always keep in mind that you were chosen to carry out the wishes of the decedent after his/her demise.
How long does Estate Administration process generally take?
In looking at a timeline for completing the trust administration process, it truly varies upon the different circumstances of the trust that is now part of your fiduciary duty to carry out.
Administering a trust of a married couple when one spouse passes away, for example, can be completed in a few short months but that is only if it is a straight forward non-complicated trust. No trust is ever alike. Every person in this world has a variety of dynamics that must be taken into consideration. Settlement of a large trust with multiple beneficiaries can be more complex and thus take longer to complete. This is true especially if the trust calls for splitting the trust into several other trusts or if children are involved from prior marriage/s, etc. The time it takes will depend on the helpfulness, organization and efficiency of everyone involved.
Are delays generally common in the Estate Administration process?
Delays should be expected there are any complications that arise, such as deed title problems, income/property tax issues, or if there are any disputes that arise with beneficiaries or creditors.
If you are a trustee, it’s important to set a timeline for administering the trust and outline a budget for administration costs. The timeline and costs should be communicated to trust beneficiaries as soon as possible. Many trust litigation cases arise simply due to lack of communication between trustees, beneficiaries and the trustee withholding information. Please keep in mind that the administration of a trust can be quite complex depending on the way the trust was written, the changes in circumstances since the trust was written, the overall family dynamics and in some cases who was chosen as beneficiaries by the decedent.
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here are the steps involved:
1. GIVE NOTICE TO ALL HEIRS, BENEFICIARIES AND POSSIBLE CREDITORS
Trustees are required by law to give notice of the trust administration to all legal heirs and beneficiaries. They also need to give notice to potential heirs and anyone who would think they should have been included. There is a specific legal form that is required for you to prepare which must be mailed by the U.S. Postal Service. Once you have mailed this notice, any party wishing to contest the trust must do so within 120 days. In addition it is suggested that you also notice potential creditors. By doing so the creditor claim period can start to begin. The importance of this is that any creditor claims against the trust which are submitted to be paid by the Trustee after the creditor claim period has expired, do not have to be paid.
2. IDENTIFY ALL OF THE TRUST ASSETS OF THE DECEASED
It is extremely important that you as a trustee to identify and marshal all assets of the deceased. Keep in mind that the Trustee can be held liable if anything should happen to trust assets. This includes if trust assets disappear. The trustee is responsible for ensuring no assets are stolen, lost, or destroyed. The Trustee is responsible to maintain the health, nature and value of every asset that is marshalled.
3. INVEST TRUST ASSETS IN INTEREST BEARING ACCOUNTS
During the time (whether short or lengthy) it takes to administer a trust, the trustee has a fiduciary duty. Their duty is to invest assets in a reasonable manner that does not dissipate.
4. OBTAIN TITLES
Obtain Titles for assets not already in the trust.
5. GET APPRAISALS
Get appraisals for all real estate and other valuable assets. You will need them at tax time.
6. PAY ANY DEBTS OWED BY THE ESTATE
Pay any debts to avoid personal liability
7. FILE TAX RETURNS
File any tax returns for the decedent and for the trust and estate entity
8. PREPARE TRUST ACCOUNTING
9. PREPARE THE DISTRIBUTION PLAN
10. DISTRIBUTE THE TRUST ASSETS ACCORDING TO THE TRUST INSTRUCTIONS
Do you have questions about Estate Administration in Walnut Creek, CA?
Call Rex Crandell Firm at 925-934-6320 for help with Trusts & Estate Administration!
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