If you are a Trustee of a trust and have never had that responsibility before, it can truly be overwhelming. At the Martella Law Firm, we will hold your hand through the process and will guide you through what you need to do to make it as stress free as possible.

Trust Administration refers to the process of managing and distributing assets held in a trust after the trust creator (also known as the settlor or grantor) has passed away. A trust is a legal arrangement in which a person (the settlor) transfers assets to a Trustee to be held and managed for the benefit of one or more beneficiaries, according to the terms and conditions specified in the trust document. Trust Administration is typically overseen by the Trustee, who is responsible for carrying out the settlor’s wishes as expressed in the trust document, and for managing and distributing the trust assets in accordance with the trust’s provisions and the Florida Trust Code as set forth at F.S. § 736.0101 et seq.

The specific steps and requirements of Trust Administration may vary depending on the terms of the trust and the type of trust involved.

Some common tasks involved in Trust Administration include:

1. Identifying and Valuing Trust Assets: The Trustee is responsible for identifying and valuing all

assets held in the trust, which may include real estate, investments, bank accounts, and other

types of property.

2. Managing Trust Assets: The Trustee has a fiduciary duty to prudently manage and invest trust

assets, and to act in the best interests of the beneficiaries. This may involve making investment

decisions, maintaining records of trust transactions, and keeping the trust assets separate from

the Trustee’s personal assets.

3. Administering Distributions: The Trustee is responsible for distributing trust assets to the

beneficiaries in accordance with the terms of the trust. This may involve making periodic

distributions, such as income distributions, or distributing trust assets upon certain events or

milestones, as specified in the trust document.

4. Communicating with Beneficiaries: The Trustee has a duty to communicate with the

beneficiaries of the trust, keeping them informed about the administration of the trust,

providing accountings and reports, and responding to any inquiries or requests from

beneficiaries. This is often an area of contention where a Trustee does not inform the

beneficiaries, which can ultimately lead to litigation and the unfortunate draining of trust assets

on legal fees. As in any relationship, whether professional or personal, good, clear, consistent

communication on a regular basis can prevent many issues.

5. Handling Taxes and Legal Requirements: The Trustee is responsible for ensuring that any

applicable taxes, such as income taxes and estate taxes, are properly handled and paid from the

trust assets. The Trustee may also need to fulfill any legal requirements, such as filing trust-

related documents with the court or other relevant authorities.

6. Resolving Trust-related Issues: The Trustee may need to handle any issues or disputes that arise

during the Trust Administration process, such as interpreting the terms of the trust, resolving

conflicts among beneficiaries, or addressing challenges to the validity of the trust.

7. Final Distribution and Trust Termination: Once all Trust Administration tasks are completed, the

Trustee is responsible for making final distributions to the beneficiaries and formally terminating

the trust according to the terms of the trust document and applicable laws.

It is important to note that Trust Administration can also be a complex and legally nuanced process, and it is typically advisable for Trustees to seek professional legal and financial guidance to ensure that their duties and responsibilities are carried out effectively, and in compliance with applicable laws and regulations. Mark is always happy to review an existing trust and provide guidance as to what the requirements of the trustee are to fulfill his or her legal and fiduciary duties.

Meeting with Mark for a free consultation to discuss your particular financial situation and family structure can provide guidance on trust laws and procedures in Florida, and help ensure that your ultimate estate administration process is carried out smoothly and effectively. He’s here to help when “life happens.”