Trust Administration

Trust Administration is the procedure that a Successor Trustee goes through to administer the terms of a trust. The person who creates a Revocable Living Trust is called a Trustor. A Trustor generally administers a Trust on their own without much difficulty or maintenance needed. However, if a Trustor is in a declined state or is no longer living, a successor trustee needs to step in to administer the trust. When a Successor Trustee steps in to act on behalf of a Trustor, we call this a Trust Administration. The Successor Trustee has a Fiduciary Duty (which means they have a legal obligation) to carry out the terms of the trust. If a Successor Trustee doesn’t follow the terms of the trust or misinterprets complex language of a trust, the Successor Trustee can be held personally liable for any damage caused. Generally, a Successor Trustee administers the terms of the trust under the direction of an experienced attorney who is licensed in the state where the trust is being administered (generally this takes place in the state of the Trustor’s residence). Common tasks involved in administering a Revocable Living Trust includes:

  • A thorough review of the entire Trust Document.
  • Prepare an Acceptance and Certification of Trustee.
  • Under AZ law, a Trustee must notify beneficiaries within X day after they have accepted the role of Successor Trustee (see ARS ____).
  • Create an inventory of Trust Assets and Expenses.
  • Publish Notice to Creditors.
  • Pay final expenses.
  • File final tax return.
  • Disclose to the beneficiaries what they are entitled to.
  • Have beneficiaries release the Successor Trustee from further liability.
  • Make final distribution of trust.