Trusts play a vital role in estate planning, allowing individuals to protect assets, avoid probate, and dictate how their wealth is distributed. However, trust administration is an ongoing process that requires careful oversight to ensure compliance with the law and adherence to the trustor’s wishes.

Our Sterling Heights trust administration attorneys at Mannor Law Group, PLLC provide the legal guidance necessary to manage trusts effectively. We work with clients to ensure proper execution, mitigate potential risks, and maintain the trust’s intended purpose for future generations.

Essential Tasks and Duties of a Trustee in Trust Management

The individual who creates a living trust is known as the trustor or grantor. They establish the trust’s terms and determine which assets will be included. Since a trust imposes fiduciary responsibilities, the trustor must appoint a trustee to oversee its administration. Many trustors choose to serve as their own trustee initially.

A trustee is responsible for carrying out the trustor’s wishes while adhering to legal guidelines. Administering a trust can be complex, especially when multiple assets are involved, requiring financial knowledge and strict compliance with regulations. Selecting an informed trustee is essential. Poor trust management can lead to financial penalties, and in severe cases, a trustee may be held legally responsible for any harm caused to the trust or its beneficiaries.

If you have been named a trustee, consulting a legal professional is a wise step. We can provide the necessary guidance to ensure compliance and help you fulfill your duties effectively.

Legal Duties of a Trustee Following the Trustor’s Death

A trust helps assets transfer efficiently without going through probate. After the trustor’s passing, the trustee must step in and handle all required administrative duties before distributing assets.
Key trust administration responsibilities include:

  • Notifying beneficiaries and creditors about the trust

  • Documenting all trust property, assets, and income

  • Publishing required legal notices under Michigan law

  • Ensuring assets are distributed as the trustor directed

  • Managing or liquidating trust assets as needed

  • Paying any outstanding expenses of the deceased

  • Filing final tax returns and settling obligations

  • Providing a final trust accounting to beneficiaries.

The time and effort required depend on the complexity of the trust.
At Mannor Law Group, PLLC, our Grand Blanc trust administration attorneys offer skilled legal support to trustees. We help navigate the trust administration process and ensure all obligations are met.

FAQs by Sterling Heights Clients

What safeguards can a trustee implement to prevent administration errors?

Effective trust administration requires careful drafting of trust provisions, appointing knowledgeable trustees, routinely reviewing and updating the trust, educating beneficiaries on financial matters, verifying proper asset transfers, and utilizing tax strategies to preserve the trust’s value.

Why choose a revocable trust over an irrevocable trust, or vice versa?

Revocable trusts allow grantors to retain control, adjust terms, and revoke them entirely during their lifetime, ensuring adaptability but offering no protection from creditors. Irrevocable trusts, in contrast, transfer assets permanently out of the estate, potentially reducing tax liability while securing wealth from legal threats. The decision between these trusts depends on whether the grantor prioritizes flexibility or long-term asset protection as part of their estate strategy.

Under what conditions can an irrevocable trust be amended or terminated?

Even though irrevocable trusts are meant to be final, modifications can occur under the right conditions. A trust protector can be granted limited powers to make adjustments, while decanting or court-approved modifications offer alternative ways to revise trust terms.

What Belongs Outside of Your Living Trust?

While a living trust can be a powerful estate planning tool, not all assets should be transferred into one. Retirement accounts, such as 401(k)s and IRAs, should be kept in your name to avoid losing tax benefits, and life insurance policies transferred to a trust may create unintended tax liabilities. If you need to provide ongoing financial support for a loved one with disabilities, a special needs trust is often a more suitable option. Additionally, transferring assets into a trust means they will be managed by the trustee, which may limit your direct access to them. Consulting an estate planning professional ensures you structure your trust in a way that best serves your financial goals and your family’s future.

Call Our Professional Trust Attorneys for Help Now!

Your future deserves thoughtful planning and experienced legal guidance. At Mannor Law Group, we take a Life Care Planning approach that ensures your trust and estate affairs are handled with care, efficiency, and precision. Our team is dedicated to providing customized solutions that protect your assets, honor your wishes, and offer security for your loved ones. Take control of your future today by reaching out to our experienced attorneys for a consultation.