Trust administration involves overseeing the assets held within a trust. A trust is a form of legal ownership in which an ownership interest in real or personal property is split. Trusts are commonly created as an estate planning tool, and the trust administrator then oversees the distribution of assets within the trust according to the wishes of its creator. There are many different types of trusts and many different goals that lead to a person or married couple creating a trust.
There are a number of aspects to owning property. Mainly, property ownership involves the right of possession, the right of use, the right to transfer or sell property and the right to will the property to heirs upon death. When a trust is created, the ownership of the property is vested in the trust, which is a legal creation. The beneficiary of the trust is then vested with limited rights according to the terms of the trust; the beneficiary may have the right to use items within the trust but not to sell them or transfer them, or may have limited usage rights and restrictions on what he may do with the assets held in the trust.
When a trust is created, in addition to naming the beneficiary or the person who is entitled to use the trust assets, a trustee must also be named. That trustee is responsible for trust administration. This means he is responsible for protecting the assets in the trust and ensuring they are used according to the wishes of the individual who established the trust. Further, Successor Trustees and, sometimes, Trust Protectors should be named.
The duties involved in trust administration vary depending on the nature of the trust created. It is common, for example, for a person to create a trust in which money is left to a child and then distributed to that child to pay educational expenses or when the child reaches a certain milestone. In such a situation, the trust administration duties involve ensuring that the assets are protected until the child reaches maturity and/or ensuring the money in the trust is used only for qualified educational expenses.
One type of common trust, frequently used in Florida to avoid probate, is the Revocable Living Trust. Even after the trust creator(s) dies, there are specific steps to be followed that are required by the state of Florida. Many of the duties required under Probate are still required in a Living Trust situation, just without court supervision: documents need to be filed in the public records, creditors and taxes need to be paid, property needs to be managed until it is paid out to beneficiaries, and accountings to beneficiaries still need to be made. While an attorney is not required in Florida for trust administrations, many Successor Trustees have found the process to be much quicker and less stressful when someone experienced in this field assists with the settlement process. The Estate Planning & Elder Law Center of Brevard has years of experience working with Successor Trustees to streamline this process.
