When a loved one passes away, it can be overwhelming for the family members. In addition to the grief, loss, and sadness, they must also deal with the often daunting task of administering the decedent’s estate.
How the family members should proceed will depend on what type of estate planning the decedent had established before their death. Hopefully, the decedent had been properly advised and proactive in their approach to estate planning. If the decedent had been advised as to the benefits of establishing a living Trust and had diligently funded and updated the Trust, administration of the estate should be a smooth, easy process for their loved ones. With a living Trust in place, the estate will be administered through a trust administration.
Trust administration is a private process that can typically be done through an attorney’s office without requiring court involvement. The decedent’s property will be transferred pursuant to the instructions left in the Trust. This process is advantageous for a number of reasons. Without the need to involve the court, we avoid the delay and high fees associated with probate. We also avoid the privacy concerns associated with the creation of public documents.
Although a Trust allows for a more informal process in passing the decedent’s property, it is important to note that there are time frames, legal processes, and procedures for managing a Trust upon the death of the creator of the Trust. While many people believe that upon the Trust creator’s death, the property simply passes to those named in the Trust, in actuality, there are many very important administrative tasks that must be completed. Questions and issues that need to be resolved during the administration process include:
1. What assets were owned in the name of the decedent’s Trust?
2. Was the decedent single or married?
3. If the decedent was married, does the Trust provide for estate tax planning at the first death?
4. Preparing and sending legal notifications
5. Estate tax implications and deadlines
When establishing the Trust, it is important to choose the right attorney to work with. Similarly, it is equally important to choose the right attorney to work with when administering the estate. Because the analysis and decisions that need to be made during the administration process are extremely important, it is crucial that the family members work with an attorney who is knowledgeable and experienced in this very specialized area of law. The decedent’s family should find comfort in knowing that they will be well taken care of during this difficult time, and the process will be smooth and painless.