I thought it would be helpful to explain the basics of trust administration in Cincinnati Ohio for both those who currently have a trust and those considering one. Let’s say you already have a trust … here are some important components.
Who is Who? First, there are three key roles when it comes to trust administration. They are: the settlor (the individual who created the trust – in this example, that’s you), a trustee (the individual or firm you appointed to oversee and manage the trust), and the beneficiary (beneficiaries if there are more than one) of the assets in the trust.
What are the Costs Associated with Trust Administration? I have found that many heirs when faced with the complexities of wills and trust believe, usually mistakenly, that when their loved one dies if they hire an attorney to help, it will come out of their own pocket. Nope, most expenses related to settling an individual’s estate, such as funeral expenses, appraisal fees, attorney, and accountant fees are payable from the decedent’s assets. So when you die, those kinds of expenses are not the burden of your beneficiaries. Good to know.
What is One Big Benefit of Trust Administration? Arguably the best one benefit comes into play when a parent dies while their child is still young. The trust (which the parent would have set up in advance) would include the appointment of one or more trustees to distribute the trust funds for the child’s support and/or for the future when the child is old enough to receive them.
What Happens if You Don’t Update Your Trust? I’d like to take this opportunity to mention that trust administration relies on the most recent legal documents. But what if you never got around to updating them? I’ve seen it too many times. Young parents might enthusiastically set everything up when they have their first baby, have very few assets, and are happily married. Fast forward (and sometimes it happens really fast) more babies are born, assets acquired, and then sadly the happy couple divorces. And one or both parents die. Maybe those young parents appointed trustees for their children who have since moved out of the country or perhaps died. Assets acquired later were never named in the trust, causing those assets to be subject to going through probate proceedings. Maybe some of the children born later aren’t even mentioned in the trust. Or maybe former in-laws, with whom you’ve not seen eye-to-eye for years are now in charge of your assets because you never updated your trust.
So those are the basics of trust administration. And staying with the example that it’s your trust … and sadly you die … trust administration services in Cincinnati Ohio will help make sure your wishes are carried out correctly. Your heirs receive the assets you designated. And probate proceedings are avoided where possible.
As an estate planning attorney, I have helped many clients who find themselves in need of trust administration in Cincinnati, Ohio. If you find yourself in need of an experienced estate planning lawyer to help you please do not hesitate to call me at 513-399-7526 or visit https://davidlefton.com/services/probate-and-trust-administration/