Leesburg Trust Administration Lawyer
Trusts are one of the most commonly used tools in the estate planning process. These documents allow a person to see their assets distributed according to their wishes without going through the probate process.
Contrary to popular belief, trusts are not limited to the exceptionally wealthy. Many people with either large or small estates could benefit from using this estate planning option. If you are interested in forming a trust, it is recommended that you work with experienced legal counsel. Discussing your situation with a Leesburg trust administration lawyer could put you in the best position to see your wishes fulfilled at the end of your life.
Types and Benefits of Trusts
Trusts fall into two categories, revocable and irrevocable. While a revocable trust can be altered by the person who made it, irrevocable ones typically may not be changed. Within these two categories, there are several different kinds of trusts available in Leesburg, each with unique benefits and properties. Some of the most common types of trusts include:
- Marital trusts
- Charitable trusts
- Special needs trusts
- Generation-skipping trusts
- Minor trusts
One of the biggest benefits of a trust is the ability to avoid the costly probate process. Not only could this speed up the distribution of a person’s assets after their passing, but it also ensures that certain assets are kept out of the public record.
Administering Trusts
Although trusts can help with avoiding probate, substantial administrative tasks are still required. The process of administering each trust is similar, but as the assets within a trust grow larger, the administrative effort to dispense them also increases.
Collecting Assets and Debts
After a funeral and burial, a trustee typically begins the trust administration process by collecting the assets and debts of the estate. This includes taking control of accounts and gathering documentation on all real property owned by the trust.
Addressing Debts
After collecting these assets, the next step usually involves addressing the debts of the estate. Every case is different—while some estates have little to no debt to deal with, others could end up having more debt than assets. Once the debts are confirmed, it is the role of the trustee to pay these debts using the assets of the estate. This could include the costs that go into administering the estate, such as storage fees, auctioneer costs, and the fees for a Leesburg trust administration attorney.
Specific Requests
Once the debts are settled, a trustee will then address any specific requests included in the trust. This usually involves personal items and mementos rather than money. For items that have value, that amount could be deducted from the cash disbursement later on.
Estate Taxes
Before cash is disbursed, the trustee must also address any taxes that are due. Not every estate is liable for estate taxes, but the trustee must pay any taxes before distributing the remainder of the estate. After paying out the cash value of the trust to beneficiaries, an independent audit is common.
There are many steps to consider in properly administering a trust, so those tasked with this role should seek experienced legal guidance in the area to ensure that all requirements are fulfilled.
Contact a Leesburg Trust Administration Attorney
Administering a trust is an important role that carries serious fiduciary duties, including selling assets, negotiating debts, and ensuring that a person’s final wishes are adhered to.
While this job is challenging by nature, it can be even more difficult with a poorly drafted trust document. To make the process as easy as possible, speak with a Leesburg trust administration lawyer today.