Portland Trust Administration Lawyers

Whether the grantor or trustee has died, resigned, or become financially or mentally incapable, serving as a trustee or successor trustee and administering a trust requires a serious time commitment, good organizational skills, and an in depth understanding of the legal duties and tax implications of the position.  Trust administration may involve management of investment or residential real property, interests in business entities, stocks and bonds, mutual funds, mineral rights, and retirement funds and annuities.  The attorneys at Chenoweth Law Group, P.C., are here to guide you through the duties imposed by law and the trust document, such as preparing and filing income tax returns on behalf of the trust, maintain accurate records, engaging in any necessary legal actions, terminating trusts, and determining distributions to trust beneficiaries with the utmost professionalism.

What Is Trust Administration?

Trust administration is simply management of a trust. It is a process in which a trustee or successor trustee carries out the wishes of the person who established the trust, often called a settlor, trustor or grantor.  Trust administration requires managing the trust’s assets to keep them productive and generating value or revenue, and ultimately distributing the assets in the trust in accordance with the trustor’s wishes. This process includes a variety of tasks, such as notifying beneficiaries, paying off debts, filing taxes and distributing assets. Each step requires care to ensure compliance with Oregon law and to respect the wishes of the trustor. CLG attorneys advise trustees to help them manage these responsibilities for simple and complex trust arrangements.

We use our knowledge and experience to ensure trustees comply with their obligations and are compensated for their services by the trust.  When a trust is properly administered with sound advice from counsel, it protects the trustee from potential claims of mismanagement from disgruntled beneficiaries.

What Is A Trustee And What Does A Trustee Do?

A trustee holds and manages the assets of a trust for the benefit of a third party, known as the beneficiary. A trustee can be an individual person or an institution, such as a bank. The trustee is appointed by the original owner of the assets, called the settlor, trustor or grantor, and is responsible for administering the trust according to the settlor’s instructions. Trustees have a fiduciary duty (a legal obligation) to act in the best interests of the beneficiaries, which involves managing the trust’s assets prudently, impartially, and in accordance with the terms of the trust. Trustees play a crucial role in the administration of a trust. Their duties include:

• Notifying beneficiaries: Trustees must notify beneficiaries and keep them informed about various aspects of the trust and its administration such as providing annual accounting reports.
• Setting up an EIN: Trustees must obtain an employer identification number (EIN) for the trust.
• Paying debts and taxes: Trustees are responsible for identifying creditors, paying off debts, and filing personal taxes for the deceased and estate taxes for the trust.
• Managing assets: This can include selling real or personal property, investing or liquidating investment property according to terms of the trust agreement or to pay off expenses, debts, and taxes.
• Distributing assets: Trustees must distribute the remaining assets to the beneficiaries according to the trust terms.

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Compliance with Oregon trust and estate law is essential for all trustees. Failure to do so can result in legal complications. If you are a trustee who lacks familiarity with what is required of you under the law, you are at a disadvantage and may face exposure to litigation. Having a Portland trust administration attorney is crucial. At Chenoweth Law Group, P.C., we will ensure you fulfill all of your duties as a fiduciary and a trustee for the benefit of the beneficiaries.

Trustee Vs. Successor Trustee: What To Know

A trustee is an individual or organization appointed to manage and administer the assets of a trust for the benefit of a third party, known as the beneficiary. In the case of a revocable living trust, the settlor often serves as the initial trustee of the trust and manage its assets during his or her lifetime.  A successor trustee is designated to take over the administration of a trust after the original trustee (often the settlor) becomes incapacitated or dies. Successor trustees are named in the trust document and their role become active upon the incapacity or death of the initial trustee. The successor trustee assumes all responsibilities of management of the trust.  Often the successor trustee is referred to as the trustee.

The Challenges You Face Without A Trust Administration Attorney

Navigating trust administration without legal assistance can lead to significant challenges in both the short and long term. Mistakes can be time-consuming and may result in financial losses. Additionally, there is a risk of a beneficiary or another party alleging wrongdoing, which can result in litigation. Having a knowledgeable estate planning attorney on your side to guide you in administering a trust can provide peace of mind and prevent such issues. You owe it to both the beneficiaries and the trustor who you are serve to work with reliable counsel who can help you administer the trust according to the trustor’s wishes.

Turn To Portland Trust Administration Attorneys Today

At Chenoweth Law Group, P.C., we are committed to making trust administration as seamless as possible. To schedule an initial consultation with us, please call 503.446.6261 or send us an email.