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A Winter Garden Attorney Providing Comprehensive Trust Administration Services

Last updated on April 11, 2025

Trust administration involves managing and distributing the assets in a trust according to its terms and the law. It is often complicated work with high stakes. The reassuring news is that you don’t have to do it alone.

Our trust administration lawyer at C.J. Hilliard Law, P.A., provides experienced guidance and comprehensive representation to trustees in the Orlando metro area. She will ensure you fulfill all obligations and fully comply with the law and terms of the trust.

How Does Trust Administration Differ From Probate?

Trust administration and probate are both processes for managing a deceased person’s assets, but they differ significantly. Probate involves validating a will (if there is one) and settling debts and estate taxes before distributing the remaining assets to heirs according to the will and other estate planning documents. It is a court-supervised process.

Trust administration, on the other hand, involves managing and distributing assets held in a trust according to the trust document. It often avoids court involvement, allowing for a more private and efficient process. Trusts typically also provide the grantor more control and flexibility over asset distribution, meaning that successor trustees often have very specific obligations to meet.

The Notice Of Trust

A Notice of Trust is a legal document filed with the court when a trust becomes irrevocable upon the death of the grantor (the person who created it). This notice is intended, in part, to inform creditors and interested parties that the grantor has died and the trust is in effect. The notice must include information like:

  • The name of the trust (if applicable)
  • The date it was established
  • Name, date of death and other information about the grantor
  • The successor trustee’s contact information

Filing this notice starts the statute of limitations for creditors to make claims against the trust assets, ensuring the orderly administration of the trust.

The Duties Of The Trustee

As a successor trustee, you will be responsible for filing the notice of trust, but you also have several other important trustee duties and responsibilities. First, you must manage and protect the trust assets prudently, ensuring they are invested wisely and maintained properly.

You are also responsible for keeping accurate records of all trust transactions and providing regular reports to beneficiaries. Additionally, you must act impartially, balancing beneficiary rights and interests, and avoid any conflicts of interest or trust disputes.

Another key duty is to distribute the trust assets according to the terms set forth in the trust document. Lastly, you must ensure compliance with all relevant laws and tax obligations related to the trust. These duties can be complex and time-consuming, which is one of many reasons to consult an experienced trust administration lawyer like Claire J. Hilliard.

Reading And Understanding A Trust Document

When reading a trust document, the first thing to consider is what terms you may find. For instance, if the trust refers to a donor or a grantor, that is the person who initially created the trust. The trustee, on the other hand, is the person who administers the payments and handles the account. Finally, the beneficiaries are the people who receive those payments.

In other words, the trustee is in charge of distribution and ensures that the grantor’s provisions in the trust are followed, but they are not the one who directly benefits, as they are administering those payments to specific beneficiaries—who could be children, grandchildren or others.

Next, there will be provisions in the trust stating how it should be used. Some trusts are written for a very specific purpose. For instance, a special needs trust helps to hold assets for a beneficiary with special needs without disqualifying them from government benefits. But a trust could also be set up to pay for college expenses or simply to hold financial assets until a beneficiary turns 18.

There may also be provisions on how the trustee can make the payments. For instance, is the trust earning income? If so, the trustee may be authorized to distribute the income, but the principal should remain. In other cases, the trustee is also authorized to distribute the principal as necessary.

Additionally, there should be tax provisions in the trust if there are significant tax implications. It is important to understand what tax obligations may exist as these distributions are made and financial assets are handled.

The trust should be either revocable or irrevocable. A revocable trust can be altered by the donor while they are still alive, but an irrevocable trust cannot. The grantor may have set it up either way for a variety of reasons, including the impact it has on their estate and potential taxes that are due, but it is important to note which type of trust you are dealing with and if it has an end date.

Contact The Firm To Learn More

To request an initial consultation with our experienced trust attorney, call our Winter Garden office at 407-255-7607 or reach out online.