What is Trust Administration?
If a decedent has a properly drafted and funded Revocable Living Trust, then upon their death, there may not be a need for Probate. In the Revocable Living Trust, the decedent names a Successor Trustee to administer the terms of the Revocable Living Trust. The Successor Trustee will file a formal acceptance of his or her role as Successor Trustee, as well as a Notice that the trust is ready to be administered. The duties of the Successor Trustee in administering the trust are identifying and handling the decedent’s debts, locating Trust assets, usually liquidating those assets, and then distributing assets to the beneficiaries based on the terms of the Trust. The Successor Trustee’s duties also include locating and reviewing all of the decedent’s estate planning documents, locating all trust beneficiaries, filing the original Will with the local Probate Court and recording the death certificate in the County where decedent lived and/or owned real property. If all of the decedent’s assets have been placed in the Trust prior to death, then the Successor Trustee will be able to fully disburse the assets to the intended beneficiaries. As such, there will be no need for Probate. Trust administration is generally a much faster and less costly proceeding than Probate.
If I am named as the Successor Trustee in the decedent’s Trust, isn’t that enough for me to act on behalf of the Trust?
No. The Trust lists the person or persons that the decedent nominates to fill the role of the Successor Trustee. That nomination is not binding on the person listed. That person may not want to act as the Successor Trustee. Before assuming the role of Successor Trustee, there must be a formal and written acceptance by the Successor Trustee that is filed and recorded with the County that the decedent was a resident of.
How long does Trust Administration take and how much does it cost?
The trust administration process takes as long as is necessary for the Successor Trustee to identify all trust assets, identify all creditors, pay all bills and expenses of the decedent, and disburse the Trust assets to the named beneficiaries. It is also necessary to evaluate whether Probate is necessary for any non-trust assets.
Is the Trust responsible for the decedent’s debts?
Yes and no. In most situations, trust beneficiaries are not personally responsible for the debts left behind by a decedent. If debts are to be paid, it is typically from the Probate estate. Florida law allows creditors to file a claim against the Probate estate if they follow the Court rules. There are strict time limits involved and if the creditor does not file a timely claim, they will be barred from proceeding. Also, creditors must file a claim against the estate within two years of the decedent’s death for any consideration of payment. However, if there is no Probate estate and all assets are a part of a Revocable Living Trust, the trust may have an obligation to make payment. A Revocable Living Trust is not a means to shield assets from creditors. It is important for the Successor Trustee to accumulate information on all debts and evaluate whether payment is required.
Contact Pittman Law Office
It is recommended that the Successor Trustee retain an attorney to assist them with the administration to make sure that the Trust Administration is handled properly. Connect with us so we can guide you through the Trust Administration process. We also provide assistance to the surviving spouse/partner even when a probate or trust administration is not necessary.