Trust administration requires very specific tasks to be performed by the fiduciary, also known as the trust administrator. This person is named by the grantor and they will administer the trust and protect the assets. This protection is to benefit the beneficiaries.
This is a process that can be frightening to enter into because there are some complexities that come about. With the help of an experienced and committed Minneapolis probate attorney, you can successfully and smoothly administer the trust. This is not a process that you have to face on your own.
Helping You With Distribution
The income and principal of the trust must be separated. In many cases, it may be designated that the income be distributed at intervals. Each distribution can be to a separate beneficiary each time. A later time can be designated in which the principal is transferred. An example of this is when the income is paid to the surviving spouse and the principal is transferred to the children.
Furthermore, there is a duty of care that is owed by the trust administrator. One of the responsibilities is to invest the assets in order to create an income. It is for this reason that the administrator should have some kind of financial experience and/or be willing to seek out investment advice so he or she knows what to do. The fiduciary is also required to file annual tax returns on the trust, as well as provide the beneficiaries with financial statements. A late tax return means that the fiduciary will be responsible for any penalties and fees associated with that late filing.
Partaking In Estate Tax Benefits
It is possible to set up a trust to provide certain estate tax benefits. There are some estates that are large and complex, so reducing the tax can work well for everyone involved in the trust. These benefits exist because a large amount of wealth is being transferred to the next generation. This transfer can be tax-efficient, ensuring the benefits get more and the government less than they would otherwise.
This is a topic you can discuss with your Minneapolis probate attorney for the fact that you can be properly educated on what will work for your specific situation. Everyone is different, so there are a number of factors that can vary from person-to-person.
Contact A Minneapolis Probate Attorney                     Â
Trust administration can be confusing, which is why you shouldn’t go about it alone. At the Krogh Law Firm, P.A., you receive the one-on-one attention you need from an attorney who has been practicing for over 17 years. You also have the peace of mind that the guidance you are receiving is honest, straightforward, and correct. To learn more about your options, call today at 651-631-0500 to request a free consultation.