Many clients choose to establish trusts within their estate plans to protect their wealth and provide for their families. A well-structured living trust can help avoid probate, reduce tax burdens, and allow for personalized asset distribution. However, trusts are legally binding arrangements that require diligent oversight to remain effective and compliant.

Our Rochester trust administration attorneys at Mannor Law Group, PLLC help ensure that trusts are properly managed according to the trustor’s wishes while adhering to all applicable legal guidelines. We guide clients through the administrative process and help mitigate risks that could cause future complications.

The Trustee’s Role in Managing and Administering a Trust

An individual who creates a living trust is called a trustor or grantor. They define the trust’s purpose and select the assets to be placed in it. Since a trust establishes a fiduciary duty, the trustor must appoint a trustee to manage and execute the terms. Many trustors serve as their own trustees during their lifetime.

A trustee’s responsibilities include adhering to the trustor’s instructions while complying with both state and federal laws governing trusts. Administering a trust can be highly complex, particularly when dealing with extensive or diverse assets, necessitating financial and legal expertise. It is essential for trustors to appoint a trustee who understands the intricacies of trust management. Failing to do so may lead to serious financial consequences. In some cases, trustees who mismanage assets or fail to comply with trust terms can be held personally liable for damages.

If you have been named as a trustee, consulting a legal professional can provide crucial guidance. Our team can assist you in fulfilling your responsibilities while ensuring that all legal and financial requirements are met.

Trustee’s Role and Responsibilities After the Trustor Passes

A major advantage of placing assets in a trust is that it allows them to pass directly to beneficiaries without probate. The trustee assumes control immediately after the trustor’s death and must complete all required legal and financial steps.
Key responsibilities of trust administration include:

  • Notifying trust beneficiaries and creditors

  • Documenting all income, assets, and property within the trust

  • Publishing legal notices in compliance with Michigan law

  • Distributing trust assets as instructed by the trustor

  • Managing or selling certain trust assets when necessary

  • Paying off final expenses of the deceased

  • Filing tax returns and making any required payments

  • Providing a comprehensive final accounting to beneficiaries.

The complexity of these tasks depends on the structure and size of the trust.
Our Grand Blanc trust administration attorneys at Mannor Law Group, PLLC help trustees fulfill their obligations efficiently. We work alongside advisors and personal representatives to ensure the trust is executed properly.

FAQs by Rochester Clients

What steps can a trustee take to avoid mistakes in trust administration?

Avoiding mistakes in trust administration requires precise documentation of trust terms, appointing competent trustees, making necessary updates to accommodate life changes, preparing beneficiaries with financial knowledge, confirming assets are correctly titled, and utilizing available tax advantages to protect wealth.

How do revocable and irrevocable trusts differ in estate planning?

A revocable trust gives the grantor the ability to make changes or dissolve it at any time during their lifetime, allowing for adaptable asset management and distribution. However, because these assets remain part of the grantor’s estate, they are not protected from creditors. On the other hand, an irrevocable trust is permanent once established, transferring assets out of the grantor’s estate, which may offer tax advantages and safeguard them from legal claims. The decision between these trusts depends on the grantor’s need for control, estate tax planning, and asset protection strategies.

Can an irrevocable trust be altered or updated under certain circumstances?

Irrevocable trusts are structured to remain unchanged, but legal options exist to adapt them when needed. Changes may be possible through court approval, trust protector powers, or trust decanting, which allows assets to be moved into a newly structured trust with revised terms.

Which Items Should You Avoid Placing in a Living Trust?

A living trust is an effective tool for managing and distributing assets like real estate and investments, but not everything should be placed in one. Retirement accounts such as IRAs and 401(k)s should be kept separate to maintain their tax advantages, while life insurance policies may lose their tax-free payout if transferred into a trust. If you have a loved one with special needs, a dedicated special needs trust may be more appropriate for managing their financial future. Since assets placed in a trust are controlled by the trustee, you may lose the ability to sell or access them freely, so careful consideration is essential. Speaking with an estate planning attorney can help you determine which assets belong in a living trust and which are better managed through other means.

Contact Our Experienced Trust Attorneys Today!

At Mannor Law Group, we take a holistic approach to trust administration and estate planning, offering more than just legal guidance—we provide Life Care Planning tailored to your unique needs. Our dedicated team works closely with you to ensure your assets are protected, your wishes are honored, and your loved ones are cared for. With years of experience and a client-centered focus, we make the process as seamless and stress-free as possible. Reach out today to learn how we can help you secure your future with confidence.