Who are the people involved?

There are several important people involved in creating and administering family trusts. First, there is the person creating the trust as a way to protect and pass along valuable assets to loved ones. Then there are the beneficiaries named to receive assets when the trust creator passes away (or at another time specified in the trust documents). Finally, there is the trust administrator, or the trustee. This person is responsible for carrying out the wishes of the person who created the trust. Trustees may be members of the family or friends (provided they are legally qualified to serve as trustee). Often the appointed trustee is the attorney hired to create the trust if your situation is complex.

How is a family trust administered?

What you may wonder when creating a family trust is how this form of asset protection is administered. There are several steps the trustee goes through. First and foremost, the trustee must inventory all of the assets listed in the trust, whether it is a family home trust that contains only the primary residence or it is a more complex family trust that contains several assets. The assets must then be secured so that they can one day be passed along to named beneficiaries.

Complexity depends on the types of assets held on trust

Depending on the assets placed in trust, final income tax or other taxes may be due before distribution, and so long as the trust is set up accordingly, these bills will likely be paid by the trust. In some cases, trustees may be asked to find the market value of assets and handle selling, investing, or otherwise managing the assets for beneficiaries. By and large, though, the duties of the trustee end when the deeds/titles have been transferred and/or assets have been placed in the possession of the intended beneficiaries.

When do you need to get experts involved?

Trust administration can be easy if you hold non-income producing assets. If you hold income producing assets it is not necessarily as easy. Although it is likely to be simpler than, say, administering a will, which has to go through probate. It is for this reason that many trust creators elect to leave the administration in their later years to a professional attorney or trustee company rather than relying on untrained relatives or friends to manage the process. Not only are professionals better equipped to handle the legal ins and outs as your life gets more complex. You can certainly choose a trusted family member or friend for the task, but this is really dependent on how complex your situation becomes.

So why not learn more and register with TrustUs today.

After all, it's in your hands.