Tampa Trust Administration Attorney
A trust is a legal arrangement where a settlor (also known as a grantor) gives certain assets to a trustee. It is then the trustee’s job to manage those assets in accordance with the settlor’s instructions. This also includes distributing any trust assets upon the grantor’s death or some other triggering event. If you are serving as a trustee or successor trustee of a Florida trust, it is important that you seek out proper legal advice regarding your duties and responsibilities. Our qualified Tampa trust administration attorney can help.
Knudsen Law is a full-service Florida estate and probate firm that represents trustees in administering trusts and complying with all of their obligations under the law. We take pride in our efficient and reliable trust administration services. Our knowledgeable Tampa trust lawyers ensure that the trust assets are managed with the utmost care, adhering to the grantor’s wishes and protecting the interests of beneficiaries.
How Do You Administer a Florida Trust?
The role of a trustee often depends on the type of trust involved. Many Florida estate planning trusts are revocable living trusts, where the grantor is also the trustee and the beneficiary of the trust during their lifetime. Upon the grantor’s death, a successor trustee assumes control and the trust becomes irrevocable. The successor trustee is then responsible for distributing any remaining trust assets.
The Florida Trust Code largely spells out the responsibilities of a trustee in these situations. Some of the more common tasks a successor trustee must perform include:
- obtaining a separate tax identification number for the trust from the IRS;
- identifying and gathering any assets that belong to the trust;
- paying any debts of the trust, including taxes;
- litigating or settling any legal claims involving the trust;
- seeking judicial clarification of any terms of the trust that are ambiguous or susceptible to conflicting interpretations; and
- keeping the trust’s beneficiaries informed about the trust administration process.
Keep in mind, a trust is a separate legal entity from a deceased individual’s probate estate. Probate deals with assets that are titled in the sole name of the deceased as opposed to their trust. While the same person may be appointed to serve as both personal representative of the estate and successor trustee of a trust, they are legally distinct roles subject to different obligations under Florida law. For example, while a personal representative must typically file an accounting of the estate with a probate court, a trustee usually does not have to follow any such reporting requirements. The terms of a trust, as well as its administration, are effectively private matters under Florida law unless a dispute leads to litigation.
Notification and Documentation
Upon the grantor’s passing, the successor trustee gathers all relevant documents, including the trust agreement, death certificate, and any amendments. The trustee promptly notifies the trust beneficiaries of their rights and the existence of the trust.
Inventory and Valuation of Assets
The trustee assumes control of the trust assets, conducting a meticulous inventory of real estate, bank accounts, investments, and personal property. Accurate valuation of assets, often necessitating professional appraisals, is essential for proper trust management.
Trust Accounting
Trustees are required to maintain detailed records of the trust’s financial transactions, meticulously recording income, expenses, distributions, and asset value changes. Transparent accounting ensures a comprehensive account of trust activities.
Debt and Tax Management
The trustee identifies and resolves outstanding debts, expenses, or taxes owed by the trust or the grantor’s estate. This includes working with legal and tax professionals to comply with relevant laws and regulations.
Beneficiary Distributions
Adhering to the trust’s provisions, the trustee diligently makes distributions to beneficiaries. This includes various distributions based on the trust terms and applicable laws.
Trust Termination
Upon fulfilling the trust’s purposes and completing distributions, the trustee initiates the trust termination process. This involves a final accounting, obtaining necessary beneficiary releases, and filing required documents with the court.
Contact Our Tampa Trust Administration Lawyers Today
Administering a Florida trust is an important responsibility. A trustee who does not meet their legal and fiduciary obligations to the trust’s beneficiaries can be held legally and financially responsible for their misconduct. So it is always in a trustee’s best interests to work with a skilled Tampa estate administration attorney who can advise and represent them through the process. If you are involved with a Florida trust and would like to speak with an attorney, contact Knudsen Law today at (727) 398-3600 to schedule a consultation.
