elder law
special needs planning
life care planning
trust administration
probate
medicaid
elder law
special needs planning
life care planning
trust administration
probate
medicaid
Many families use trusts as an essential estate planning tool to shield assets from probate, reduce tax exposure, and provide structured inheritances. However, even the most carefully designed trusts require diligent administration to remain effective and legally compliant. Without professional guidance, trust management can become overwhelming.
At Mannor Law Group, PLLC, our Troy trust administration lawyers offer skilled assistance to ensure that trusts are properly maintained. We help protect the trustor’s legacy, ensure adherence to state and federal laws, and prevent errors that could jeopardize beneficiaries’ interests.
A Trustee’s Role in Protecting and Distributing Trust Assets
A trustor, also known as a grantor, is the person who establishes a living trust. They define the trust’s purpose and choose which assets to include. Because a trust creates fiduciary obligations, the trustor must appoint a trustee to manage its administration. Most trustors serve as their own trustee until they can no longer do so.
A trustee’s duty is to follow the trustor’s instructions while complying with all relevant laws. Trust administration can be complicated, especially when it involves numerous assets, requiring financial expertise and legal oversight. It is crucial for trustors to appoint a knowledgeable trustee. Mishandling trust assets can result in significant financial penalties, and in some cases, a trustee may even face legal consequences for mismanagement.
If you have been tasked with administering a trust, legal guidance can help you navigate your responsibilities. Our attorneys provide experienced support to ensure compliance and efficient management of trust assets.
Essential Tasks for a Trustee After the Trustor’s Passing
One of the main reasons to establish a trust is to avoid probate. When the trustor passes, the trustee must take over trust management and complete all legally required steps before distributing assets.
Common trust administration responsibilities include:
The complexity of these tasks varies depending on the trust’s structure.
Our Grand Blanc trust administration lawyers at Mannor Law Group, PLLC assist trustees in fulfilling their responsibilities. We provide knowledgeable legal guidance to ensure the process runs smoothly.
FAQs by Troy Clients
How can trustees stay compliant and avoid costly mistakes?
Trustees can safeguard the integrity of a trust by ensuring well-defined terms, selecting experienced fiduciaries, keeping the trust up to date, educating beneficiaries on wealth management, properly funding the trust, and taking full advantage of tax exemptions to minimize financial strain.
What should you know about the differences between revocable and irrevocable trusts?
A revocable trust gives the grantor freedom to manage and modify assets as needed, ensuring adaptability in estate planning. However, because the assets are still part of the estate, they remain vulnerable to creditors. An irrevocable trust locks assets in place once established, reducing estate taxes and providing financial protection. The choice between these trusts depends on the grantor’s priorities—maintaining control or securing assets against future risks.
Are there any exceptions that allow for changes to an irrevocable trust?
Irrevocable trusts are designed for permanence, yet changes can sometimes be made through legal means. Court approval, trust protector amendments, or decanting into a new trust are possible strategies for updating outdated or impractical trust terms.
Why Some Assets Should Not Be Placed in a Living Trust
A living trust allows you to manage and distribute your assets efficiently, but not all property belongs in one. Retirement accounts like 401(k)s and IRAs have specific tax rules that make them unsuitable for trusts, and placing a life insurance policy in a trust can lead to unnecessary tax burdens. If you are providing for a family member with special needs, a dedicated special needs trust may be the better route. Additionally, once you transfer assets into a trust, you lose direct control over them, which is an important factor to consider. An experienced estate planning attorney can guide you in deciding what assets should be placed in a trust and which should remain separate.
Connect with Our Top-Rated Trust Lawyers Today!
At Mannor Law Group, we believe estate planning should be as seamless and stress-free as possible. Our Life Care Planning approach ensures that every aspect of your trust and estate is carefully structured to protect your family’s future. We provide compassionate, personalized guidance so you can make informed decisions that align with your goals. Whether you need assistance with trust administration or long-term planning, we are here to help. Contact us today to take the next step toward peace of mind.