Part II of this series covers issues specific to successor trustees/trust administration. Part I of this series can be found here.
For Trusts: The Person(s) Nominated as “Successor Trustee” May Also Need to:
- Inform the family/other beneficiaries named in the Trust that you are the Successor Trustee.
- Give copies of the Trust to known beneficiaries.
- Notify deceased person’s bank so that you can utilize the appropriate accounts for trust-related expesnes; the bank will probably want to see a copy of the Trust and a certified death certificate and/or an updated Certification of Trust.
- Place any funds/income received after date of death (i.e. life insurance death benefits, annuities, other income) into a secure, an interest-bearing account, until distribution of the funds to the beneficiaries.
- Secure and inventory all property such as real estate and other personal property. Make sure to turn off non-necessary utilities and continue to pay mortgages/insurance/HOA bills associated with real estate.
- Locate and pay necessary bills & certain taxes (i.e. property taxes). Start a ledger of income received and bills paid.
- Contact an accountant to prepare the final income and estate tax return (if applicable).
- Bear in mind, you’ll need to prepare a final accounting ledger of all assets, bills paid and income received, to ensure you can provide an accounting to the Trust’s beneficiaries upon distribution of the estate. Keep records accordingly.
- Distribute property in the order called out in the trust, typically:
- Property on special lists of specific bequests (see Personal Property Memorandum).
- Remaining personal property; (consider holding an estate sale, if necessary).
- If a child’s trust is involved, transfer that child’s share of cash and/or property to the trustee of the child’s trust (if applicable).
- Divide the remainder of the cash and property according to the instructions contained in the trust, transferring titles of property as indicated.
- Make sure to obtain a signed receipt from each beneficiary which acknowledges that they have received the property
Also see Part I of this series and check back for Part III of this series, which covers issues related to legal duties of trustees.
Click here for a comprehensive resource to help navigate the many options and understand the important differences between life insurance policies.
–Tiffany Ballenger Floyd, Esq., Phillips Ballenger PLLC