Many individuals incorporate trusts into their estate plans to preserve assets and ensure their loved ones’ financial security. A living trust can minimize tax liabilities, bypass probate, and allow for structured asset distribution. However, ongoing trust administration is essential to maintaining its effectiveness and avoiding legal missteps.
At Mannor Law Group, PLLC, our Fenton trust administration attorneys provide skilled guidance to ensure trusts are properly managed. We help clients uphold the trustor’s wishes while ensuring compliance with all legal requirements, avoiding potential pitfalls that could impact beneficiaries.

What a Trustee Does in Overseeing a Trust

A trustor, also known as a grantor, is the individual who establishes a living trust. They determine the trust’s terms and select the assets that will be included. Since a trust creates a fiduciary duty, the trustor must appoint a trustee to oversee its administration. Many trustors choose to serve as their own trustees during their lifetime.

Trustees are responsible for managing the trust according to the trustor’s instructions while complying with all applicable state and federal laws. Trust administration can be a complex process, especially when multiple types of assets are involved, requiring financial expertise and strict adherence to regulations. Selecting an experienced trustee is crucial. Failure to manage a trust properly can result in financial penalties, and in cases of serious mismanagement, a trustee may be held personally liable for any harm caused to the trust or its beneficiaries.

If you have been appointed as a trustee, seeking legal advice is a prudent step. Our firm can provide the guidance necessary to ensure compliance with trust administration laws while helping you effectively carry out your duties.

What a Trustee Must Do After the Trustor Has Passed Away

A trust enables assets to bypass probate and be transferred directly to beneficiaries. The trustee assumes control of the trust immediately after the trustor’s passing and must complete all necessary administrative steps.
Standard trust administration responsibilities include:

  • Notifying beneficiaries and creditors about the trust

  • Taking inventory of all trust assets and property

  • Publishing legal notices per Michigan requirements

  • Ensuring assets are distributed as the trustor intended

  • Managing or liquidating trust assets when necessary

  • Paying outstanding expenses of the deceased

  • Filing tax returns and making necessary payments

  • Providing final trust accounting to all heirs and beneficiaries.

The time and effort required depend on the trust’s complexity.
Our Grand Blanc trust administration attorneys at Mannor Law Group, PLLC provide legal support to trustees throughout the process. We ensure that the trust is executed in full compliance with state and federal laws.

FAQs by Fenton Clients

What are the best practices for trustees to avoid mismanagement?

Trust mismanagement can be avoided by carefully drafting trust terms, selecting suitable trustees, reviewing and updating trust documents as needed, guiding beneficiaries in financial planning, correctly funding the trust with designated assets, and optimizing tax deductions to preserve wealth.

How does a revocable trust compare to an irrevocable trust?

A revocable trust allows for modifications or termination at any time while the grantor is alive, making it a flexible tool for asset distribution. However, since the assets are still part of the grantor’s estate, they do not receive protection from creditors. An irrevocable trust, once created, cannot be easily changed or revoked, removing assets from the taxable estate and offering legal and financial safeguards. Understanding these differences helps in determining which trust structure aligns with the grantor’s estate planning goals.

Is it possible to make adjustments to an irrevocable trust after it has been established?

While an irrevocable trust is meant to be permanent, certain legal strategies can provide flexibility. Appointing a trust protector at the time of creation allows for limited changes, and in some cases, court approval or trust decanting can help restructure an outdated trust.

Things That Don’t Belong in a Living Trust

A living trust can simplify asset management, but some items should not be included. Retirement accounts, such as IRAs and 401(k)s, should remain in your name to preserve their tax-deferred status, and life insurance policies may create tax complications if placed in a trust. If you are planning for a loved one with disabilities, a special needs trust may be a better option than a standard living trust. Additionally, placing assets in a trust means relinquishing direct control, so it’s important to ensure you’re comfortable with the trustee managing those assets. Seeking legal guidance can help you avoid common pitfalls and make the best decisions for your estate plan.

Speak with Our Trusted Trust Attorneys Today!

Estate planning is about more than just documents—it’s about securing your future and protecting your loved ones. At Mannor Law Group, we take a comprehensive approach through Life Care Planning, ensuring that your trust and estate needs are met with personalized strategies. Our dedicated attorneys provide guidance every step of the way, giving you peace of mind that your wishes will be honored. Let us help you make informed decisions that benefit you and your family. Call us today to schedule a consultation.