Probate, Trust Administration
Probate, Trust Administration
- Court Involvement: Probate requires court approval, while trust administration is generally private.
- Process: Probate involves executors/administrators, while trust administration uses a successor trustee.
- Time: Trust administration is typically faster and less expensive than probate.
- Improper Funding: If assets (e.g., real estate, bank accounts) were not legally transferred into the name of the trust before death, they may fall into the probate estate.
- Contested Trust: If the validity of the trust is challenged in court.
- Assets Outside Trust: If the deceased owned property outside of the trust that does not have a designated beneficiary (e.g., "payable on death" accounts).
- Notification: Trustees must notify beneficiaries and heirs within 60 days of the settlor's death.
- Asset Management: The successor trustee identifies, secures, and values assets.
- Debt and Tax Payment: The trustee must pay final taxes and debts.
- Distribution: Assets are distributed according to the trust document, often taking 12-18 months.
- Filing: A petition is filed with the court to appoint an executor.
- Inventory: The executor files a detailed list of assets with the court.
- Notice and Distribution: Creditors are notified, debts are paid, and the court approves final distribution.