Administering an Estate When Assets Are in a Trust
A faster, less costly process for asset distribution
When an individual dies, it’s necessary to go through a process to manage and distribute their assets, settle their debts, and pay any taxes due. Managing assets in a will can involve going through probate, a court-supervised process for wills (testate) or no-will (intestate) situations, often taking over a year from filing with the court to waiting for court approval to distribute assets.
However, if those assets are placed in a trust, specifically a Revocable Living Trust, in which the individual transfers assets while retaining control as trustee during their lifetime, those assets are handled privately by a designated successor trustee outside of court upon the individual’s death. In this case, the successor trustee distributes the assets privately, avoiding probate court.
Trust Administration is not only private but also faster than estate administration through probate. It is initiated immediately by the successor trustee, often allowing for more immediate or structured distributions.
Both successor trustees and executors of wills must act in the best interests of beneficiaries and are personally liable for errors. Their key responsibilities include fiduciary management, asset valuation, and timely distribution to beneficiaries.
Whether you are administering an estate or a trust, legal counsel is generally advised to ensure compliance and to protect against personal liability, especially regarding complex tax filings or potential family disputes.