Experienced Assistance With Trust Administration Issues
Our board-Certified Elder Law Attorneys at Curley Law Firm LLP assist clients throughout Massachusetts with trust matters. They advise trustees and successor trustees, beneficiaries and interested parties in all aspects of trust administration. Regardless of who our lawyers represent, our entire team works tirelessly to achieve a speedy, fair, accurate and lawful trust administration.
Our practice focuses exclusively on estate planning and elder law, including a significant trust practice. Our focus helps us keep current with changes in the law and the legal process. We take the mystery out of the trust process and provide you with meaningful information and advice.
Careful trust administration can save you thousands of dollars in unnecessary taxes, potential litigation and liability risks. For additional information about our qualifications and the benefits of retaining our services, please see our page entitled “Why Choose Us.”
Trust Administration Assistance From A Qualified Lawyer
Our attorneys have significant experience administering trusts of all sizes. Serving as a trustee is a tremendous responsibility and comes with enhanced legal obligations (called fiduciary duties). We can help the trustee mitigate risks and defend against potential claims by an estate creditor, a malcontent family member or trust beneficiary.
Clarifying Concerns About The Trust Administration Process
If your loved one has recently passed away, or if you were named a “successor trustee” in a person’s trust, you may have a few questions or concerns. Below, we address some of the most common ones:
What are a trustee’s fiduciary duties, timelines and reporting obligations?
A trustee has several fiduciary duties. These are legal obligations to act in the best interest of the trust and its beneficiaries, which means that they:
- Cannot benefit themselves or put their interests ahead of the trust
- Must invest and manage the trust’s assets responsibly
- Cannot favor one beneficiary over another, unless the trust says so
- Must let the beneficiaries know about the trust’s status and how they are managing it
Upon the grantor’s death, the trustee must provide notice, gather assets and respect any creditor claims within the one-year period. Trustees generally have a duty to provide beneficiaries with a regular accounting of the trust’s assets and transactions as well.
How are trust assets valued, managed and distributed after the grantor’s death?
After the grantor (the trust’s creator) passes away, the trustee’s work begins. If you are named a trustee, your first step is to identify and take control of all trust assets. You may need to get a date-of-death valuation for all assets, such as real estate appraisals or financial statements, which is important for tax purposes.
You are also responsible for managing the trust’s assets until distribution, which may include maintaining property or prudently investing funds. When it comes to distribution, our attorneys can help you follow the trust’s instructions exactly. You must pay all valid debts and taxes first and then distribute the remaining assets to the beneficiaries as the trust document directs.
What tax filings are required for a trust, and who pays the taxes?
A trust is a separate legal and tax entity, and the trustee is responsible for ensuring all taxes are filed correctly and paid from the trust’s assets. After the grantor’s death, if the trust earns income such as interest or dividends, the trustee will need to file a fiduciary income tax return (IRS Form 1041). The trust itself pays taxes on any income it retains, or it can pass the income and the tax liability out to the beneficiaries.
The trust may also be responsible for paying estate taxes if the grantor’s estate is large enough to trigger the Massachusetts or federal estate tax. Our lawyers can guide you through these complex tax requirements.
How can beneficiaries challenge or modify a trust if circumstances change?
If a beneficiary believes a trust is invalid, perhaps due to the grantor’s lack of capacity or being under undue influence, they can petition the court to contest the trust. However, this can be a difficult and expensive process. It is more common to modify a trust.
If an irrevocable trust has a mistake or if circumstances have changed (such as if a beneficiary is now disabled and needs a special needs trust), the law provides ways to fix it. This can sometimes be done out of court through a “nonjudicial settlement agreement” if all parties agree. In other cases, our attorneys can help you file a petition to the court for a modification.
Contact A Massachusetts Trust Attorney
Whether you are a trustee needing guidance or a beneficiary seeking information, our lawyers are here to help. To discuss your trust administration matter with one of our experienced attorneys, call our office at 866-406-8582 to schedule a consultation. You can also send us a message through our website, and we will contact you.
We serve clients in Wakefield and throughout Essex, Suffolk and Middlesex counties. We also arrange out-of-office consultations by appointment.