Trust Administration
Guidance for Successor Trustees
Many people assume a trust simply takes effect “automatically” when its maker passes away. That isn't always the case. A trust must be properly administered to work the way it was intended and carry out its maker's wishes.
For nearly 30 years, Attorney Todd Rosenfield has helped families throughout Westborough, Worcester County, and MetroWest Boston plan with confidence.
Serving as Trustee
Asked to Serve as Trustee?
Trust administration takes place after the death of one or both of the trust's creators, called grantors. A grantor usually serves as their own trustee during life and names a successor trustee to administer the trust after they pass away, settling estate matters and handling any post-death planning.
If you've been asked to serve as trustee, don't take the decision lightly. Attorney Rosenfield can explain the steps involved and the risks of administering a trust improperly. If you choose to serve, he'll guide you every step of the way so the trust's directions are carried out accurately. If you'd rather not, he can help identify the right person or institution to serve instead. Recently lost a loved one? See our guide, What to Do When a Loved One Dies.
Your Responsibilities
The Duties of a Successor Trustee
Successor trustees in Massachusetts must follow the terms of the trust and fulfill all the fiduciary duties of a trustee under the law. Most importantly, a trustee must put the interests of the beneficiaries ahead of their own.
Trustees must administer the trust legally and according to its terms, and provide beneficiaries with an accounting of the trust's assets. If beneficiaries believe a trustee has mismanaged the trust or failed in their duties, they can bring a claim against the trustee.
What's Involved
The Trust Administration Process
A successor trustee's responsibilities typically include:
Taking control of the assets owned by the trust
Valuing trust assets at their fair market value
Notifying beneficiaries and others as required by law
Opening a bank account in the trust's name
Notifying banks and financial institutions of the death
Managing trust assets according to the trust's terms
Investing the trust's assets prudently for the beneficiaries
Filing the decedent's final income tax returns
Filing estate tax returns when required
Making tax decisions that affect the trust's assets
Selling or transferring assets to pay debts and expenses
Distributing assets to beneficiaries according to the trust
Why It Matters
The Importance of Proper Trust Administration
Failing to administer a trust properly can have serious legal and financial consequences for the trustee and the beneficiaries. A trustee could face claims of:
Making poor investment or financial decisions
Failing to preserve or protect trust assets
Allowing trust assets to be wasted or stolen
Using trust assets for personal purposes
Acting in the trustee's own interest, such as self-dealing
Improperly favoring one beneficiary over another
Attorney Rosenfield helps trustees fulfill their fiduciary duties: reviewing the trust's terms, explaining your obligations under the law, and working with you to administer the trust properly.
Next Steps
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Frequently Asked Questions
Questions Trustees Often Ask
How long does trust administration take?
Often just a few weeks to several months. Larger or more complex trusts can take longer, especially when estate tax returns are required or assets must be divided into separate trusts for beneficiaries.
Does a trust have to go through probate?
No. Assets properly titled in the trust's name pass outside of probate. Any assets left outside the trust, however, may still need to go through probate, which is why funding a trust during your lifetime matters.
Can I decline to serve as trustee?
Yes. You're not required to accept the role. If you'd rather not serve, Attorney Rosenfield can help you understand the alternatives, including the successor trustees named in the trust or a professional trustee.
Can a trustee be paid?
Depending on the trust's terms, trustees may be entitled to reasonable compensation for their time, and trust funds can generally be used to pay the costs of administration, including legal fees.
Your Trust Administration Attorney
Todd Rosenfield, Esq.
Estate Planning, Elder Law & Probate Attorney · Socius Law Firm
Todd Rosenfield has advised Massachusetts families on estate planning and probate since 1997. From the firm’s Westborough office, he focuses his practice on estate planning, elder law and MassHealth planning, and probate for families throughout Worcester County and MetroWest. Read Todd’s full bio.
Get Started
Administer the Trust With Confidence
Schedule a free consultation, and Attorney Rosenfield will review the trust, explain your obligations, and guide you through the process.