Most of our clients integrate trusts into their estate plans to safeguard assets and create lasting legacies for their loved ones. A living trust can help bypass probate, reduce tax liabilities, and allow for customized asset distribution. However, trusts require ongoing management to ensure they serve their intended purpose. Proper administration is key to maintaining compliance and avoiding potential pitfalls.

At Mannor Law Group, PLLC, our Brighton trust administration attorneys are committed to ensuring that trustors’ wishes are upheld while meeting all state and federal legal requirements. With extensive experience in trust management, our knowledge of estate planning and trust administration allows us to provide effective strategies and solutions. We help clients navigate the complexities of administration while preventing costly errors. We are dedicated to helping individuals through every step of the trust administration process. Our attorneys work closely with clients to ensure their unique needs and goals are fully addressed.

Understanding a Trustee’s Responsibilities in Trust Administration

A person who establishes a living trust is known as a trustor or grantor. They set the trust’s terms and determine which assets are included. Because a trust creates a fiduciary relationship, the trustor must appoint a trustee to oversee its management. Most trustors choose to act as their own trustee while they are alive.

The trustee is tasked with managing the trust in accordance with the trustor’s instructions while adhering to all applicable state and federal regulations. Handling trust administration can be complex, particularly when multiple asset types are involved, requiring financial expertise and regulatory compliance. It is crucial for trustors to appoint a trustee who understands trust administration. Failing to manage a trust correctly can lead to severe financial penalties. In some cases, a trustee may even be held personally responsible for any damages resulting from mismanagement or noncompliance.

If you are responsible for administering a trust, seeking legal guidance is advisable. Addressing legal issues that may arise during trust administration is essential to avoid complications and ensure a smooth process. We can help you navigate the intricacies of trust administration, ensuring compliance with all legal obligations while protecting the trust’s assets, and preparing and reviewing each necessary document throughout the process.

Duties of the Trustee Following the Trustor’s Death

One of the key benefits of using a trust is that it allows assets to bypass probate. The trustee takes immediate control of trust assets upon the trustor’s passing and must fulfill all legal obligations before distributing assets to beneficiaries. Typical trust administration duties include:

  • Notifying beneficiaries and creditors of the trust
  • Cataloging all income, assets, and property in the trust
  • Gathering and reviewing all relevant estate planning documents, such as wills, trusts, and powers of attorney
  • Publishing required legal notices under Michigan law
  • Carrying out asset distributions per the trustor’s wishes
  • Managing or liquidating certain trust assets
  • Settling the deceased’s final expenses
  • Filing necessary tax returns and handling payments
  • Providing a final trust accounting to heirs and beneficiaries.

The complexity of these tasks varies depending on the size of the trust. At Mannor Law Group, PLLC, our Grand Blanc trust administration attorneys help clients smoothly handle the administration process. We collaborate with advisors and personal representatives to ensure all legal and financial responsibilities are met. We also address the specific needs of each trust and its beneficiaries during administration.

The Estate Planning Process

The estate planning process is a crucial step in protecting your family’s future and ensuring your estate assets are managed and distributed according to your wishes. At our law firm, we recognize that planning for the future can be an overwhelming process, especially during major life events. That’s why our experienced estate planning attorneys are dedicated to providing client-focused legal services tailored to the unique needs of individuals and families in Brighton, MI, Livingston County, Ann Arbor, and the surrounding communities.

From your first consultation at our law offices on Grand River Ave, our dedicated team works closely with you to understand your specific goals, family dynamics, and any special considerations—such as minor children, business succession planning, or the need for special needs trusts. We guide you through every step of the estate planning process, ensuring that your estate plan is comprehensive and addresses all aspects of your affairs, from wills and trusts to the appointment of a healthcare proxy and medical power of attorney.

Why Choose Mannor Law Group

Our attorneys provide expert guidance on a broad spectrum of estate planning matters, including tax planning, trust administration, and navigating probate court proceedings. We help you protect your assets, minimize taxes, and ensure your estate is transferred efficiently to your loved ones. Our legal services also extend to business law and family law issues, so your estate plan can adapt to changes in your business or family structure.

Unlike other law firms, we pride ourselves on our personalized approach. We understand that every client’s situation is unique, and we are committed to providing essential support and peace of mind throughout the estate planning process. Our attorneys collaborate with financial advisors and other professionals to ensure your estate plan is fully integrated with your overall financial strategy, giving you confidence that your wishes will be honored and your loved ones protected.

If you are seeking a law firm that offers a full range of estate planning services—including probate attorney services, business law, and trust administration—our team is here to help. Let us provide the expert guidance and dedicated service you need to create a comprehensive estate plan that safeguards your assets and secures your family’s future. Contact us today to schedule your appointment and take the first step toward peace of mind.

FAQs by Brighton Clients

How can a trustee prevent errors when managing a trust?

Trustees can minimize errors by clearly outlining trust terms to prevent misunderstandings, choosing reliable trustees capable of proper management, keeping the trust updated to reflect legal and financial changes, and reviewing or creating a simple will to help meet basic estate planning goals. Educating beneficiaries on financial responsibility, ensuring all assets are properly transferred into the trust, and leveraging tax strategies to reduce liabilities are also important steps.

What distinguishes a revocable trust from an irrevocable trust?

A revocable trust allows the grantor to modify or terminate it during their lifetime, providing flexibility in asset management and distribution, but it does not shield assets from creditors since they remain part of the grantor’s estate. In contrast, an irrevocable trust cannot be easily changed or revoked once created, removing assets from the grantor’s taxable estate, potentially reducing tax burdens, and offering protection from creditors and legal judgments. Choosing between these trusts depends on the level of control, tax considerations, and asset protection needed for effective estate planning.

Is there any way to make changes to an irrevocable trust?

Although irrevocable trusts are typically set in stone, there are legal avenues for modification in specific situations. Courts can approve changes, and trust protectors may have the authority to adjust terms. Decanting a trust, which involves transferring assets into a new trust with updated provisions, is one common method used to make modifications.

What Assets Should Be Kept Out of a Living Trust?

A living trust allows you to transfer assets like real estate, investments, and personal property into a trust managed by a trustee for your beneficiaries, but certain assets should not be included. Retirement accounts such as 401(k)s and IRAs should remain outside the trust to preserve their tax benefits, and life insurance policies placed in a trust may lose their tax-free status upon the insured’s death. Assets requiring specific management, such as funds for a special needs child, may be better handled through a special needs trust. Additionally, once assets are placed in a living trust, you lose direct control over them and will need the trustee’s approval for any sales or use, so it’s crucial to only transfer assets you are comfortable relinquishing control over. Documents like a medical power of attorney are also typically kept separate from the trust, but planning for medical decisions is an essential part of a comprehensive estate plan to ensure your wishes are respected.

Consulting an attorney can help you understand the legal and financial implications of placing assets in a trust and determine if it aligns with your estate planning goals, while also ensuring your loved one is protected through proper planning.

Contact Our Amazing Trusts Attorneys Today!

Mannor Law Group goes far beyond the basics of providing legal and financial advice by taking a comprehensive, holistic approach to planning, also known as Life Care Planning. Our team is dedicated to helping you navigate every aspect of trust administration and estate planning with personalized solutions that protect your assets and secure your family’s future. Planning for your family’s future is essential to ensure their long-term well-being and financial stability. With extensive experience, a client-focused approach, and a deep understanding of Michigan law, we ensure that every detail is handled with care and precision. Don’t leave your legacy to chance—let us provide the guidance and support you need. Contact us today to schedule a consultation and take the first step toward peace of mind.