Trusts offer an effective way to protect wealth, avoid probate, and establish clear directives for distributing assets. However, they require careful administration to ensure they remain legally sound and function as intended. Without proper oversight, mismanagement can lead to disputes or financial consequences.

Our practice areas include trust administration as well as a range of specialized legal services, such as estate planning, guardianship, and probate, to address the diverse needs of our clients.

The Ann Arbor trust administration attorneys at Mannor Law Group, PLLC, have extensive experience in guiding clients through the trust management process. We support families and family members through all stages of estate planning and administration, providing compassionate guidance during challenging times. Our team can create personalized estate plans tailored to each client’s unique needs and goals. In addition to standard trust administration, we offer supplementary services for complex or specialized estate planning tasks. We are ready to assist you whenever you are prepared to start the process.

Trust Administration in Ann Arbor

Trust administration is a vital process that ensures your assets are managed and distributed according to the specific terms set forth in your trust. This process requires not only careful attention to detail but also a thorough understanding of the trust’s objectives and the intentions of the grantor. As a leading law firm in Ann Arbor, we assist clients at every stage of trust management, providing the guidance and information needed to navigate this often complex process. Our attorneys work closely with trustees and beneficiaries to help them understand their responsibilities, avoid common errors, and ensure the proper distribution of assets to loved ones.

Whether you are stepping into the role of trustee or are a beneficiary seeking clarity, our firm is dedicated to providing the advice and support you need to protect your interests and honor your loved one’s wishes. With our experience in trust and estate matters, we strive to make the management and administration process as smooth and stress-free as possible for all our clients.

The Trustee’s Responsibilities in Managing a Trust

A living trust is created by a trustor, also known as a grantor, who defines its terms and determines which assets will be included. Because trusts establish fiduciary relationships, the trustor must appoint a trustee to oversee the management of the trust. In most cases, the trustor serves as their own trustee during their lifetime.

The trustee has the legal responsibility to manage the trust in accordance with the trustor’s instructions while following all relevant state and federal laws. Administering a trust can be a complex process, particularly when multiple assets are involved, requiring financial acumen and regulatory compliance. Choosing the right trustee is essential to avoiding legal and financial issues. A trustee who mishandles trust assets or fails to comply with legal obligations may face financial penalties and, in some cases, personal liability for any damages caused by mismanagement. Problems such as disputes among beneficiaries, delays in asset distribution, or failure to meet tax obligations can arise during trust administration if responsibilities are not properly fulfilled.

If you have been named a trustee, consulting with a legal professional can help you understand your responsibilities. We offer legal support to ensure compliance and smooth administration, helping you navigate the complexities of trust management, backed by our extensive practice in trust administration and related legal matters.

Trust Administration: Trustee’s Duties After the Trustor’s Death

Bypassing probate is a significant advantage of placing assets in a trust. Upon the trustor’s death, the trustee must assume control and take care of all legal and financial responsibilities before distributing assets. Important trust administration duties include:

  • Informing beneficiaries and creditors of the trust
  • Reviewing and documenting trust assets and income
  • Publishing required legal notices under Michigan law
  • Carrying out asset distributions per the trustor’s instructions
  • Making provisions for minor or dependent children, such as establishing guardianship or trusts for their benefit
  • Managing or selling trust property as needed
  • Settling final expenses of the deceased
  • Filing required tax returns and payments
  • Providing a final accounting to trust beneficiaries.

The complexity of these steps varies depending on the size and structure of the trust. Planning for the future care of beneficiaries, especially those with ongoing support needs, is also a crucial part of effective trust administration. At Mannor Law Group, PLLC, our Grand Blanc trust administration attorneys provide experienced guidance to trustees. We work with advisors and representatives to ensure proper execution of the trust.

FAQs by Ann Arbor Clients

How can a trustee minimize risks and errors in trust administration?

A trustee’s responsibilities include structuring trust terms to prevent conflicts, assigning trustworthy administrators, keeping trust provisions current with legal and personal changes, preparing beneficiaries through financial education, ensuring proper asset funding, and applying tax-efficient strategies to lower obligations.

What makes a revocable trust different from an irrevocable trust?

Revocable trusts provide the flexibility to alter terms or dissolve the trust entirely while the grantor is alive, making them a convenient choice for estate management. However, they do not offer creditor protection since the assets remain in the grantor’s possession. Irrevocable trusts, on the other hand, are permanent, transferring ownership of assets out of the estate, which can lower tax liability and safeguard wealth from legal claims. Selecting the appropriate trust depends on the balance between control and financial security.

Can an irrevocable trust be changed if the original terms no longer fit the trustor’s needs?

Though irrevocable trusts are intended to be unalterable, legal tools like decanting, court modifications, or trust protector authority can allow for necessary changes. Including flexible provisions at the trust’s inception may also help accommodate future adjustments.

What Property Should Stay Out of Your Living Trust?

Many people use living trusts to manage their assets, but some property is better left out. Retirement accounts like IRAs and 401(k)s offer tax benefits that could be lost if placed in a trust, while transferring life insurance policies may lead to unintended tax consequences. For individuals with special circumstances, such as a dependent with disabilities, a separate trust may be necessary to meet their long-term financial needs. It’s also important to remember that once assets are placed in a living trust, you may need trustee approval to sell or modify them. Working with an estate planning professional can help you decide what assets to include and which should be handled differently.

Benefits of Planning Ahead

Taking the time to plan ahead is one of the most important steps you can take to secure your family’s future and protect your assets. Traditional estate planning tools—such as wills, powers of attorney, and other essential documents—form the foundation of a solid estate plan, ensuring your property is managed and distributed according to your wishes. However, incorporating trust administration into your planning adds an extra layer of security and guidance, allowing you to manage your assets not only during your lifetime but also for the benefit of your loved ones after you are gone.

At our Ann Arbor law firm, we offer a comprehensive range of services, including the creation of trusts, charitable planning, and representation in probate court, all tailored to meet your unique needs. Our experienced attorneys are here to answer your questions, address your concerns, and provide the peace of mind that comes from knowing your estate is in order. By scheduling a consultation with our team, you can start the process of creating an estate plan that reflects your values and ensures your loved ones are cared for well into the future. Let us help you take the next step toward a secure and well-planned tomorrow.

Reach Out to Our Knowledgeable Trust Lawyers Now!

Planning for the future requires thoughtful consideration and expert guidance. At Mannor Law Group, we offer a Life Care Planning approach that goes beyond traditional estate planning, providing tailored solutions that safeguard your assets and protect your family. Our team is dedicated to making the process simple, efficient, and stress-free, ensuring that your trust and estate matters are handled with the utmost care. Don’t wait to secure your legacy—contact us today to learn how we can assist you.