Estate planning is an important consideration as we age, and many people use trusts to help outline their wishes after they pass. Being named as a trustee for a loved one’s trust can feel like an honor, but it can also cause a lot of stress; especially when you’re also grieving the loss of a family member.

If you’re facing the task of administering the trust of a loved one, the best thing you can do is understand what your obligations are and how an estate planning attorney can assist. 

What is Trust Administration?

The first step of the trust administration process is understanding the role of the trustee. A trustee is responsible for managing and overseeing the trust for the benefit of its beneficiaries. 

 

Some of these responsibilities include:

 

• Acting in the best interests of the beneficiaries
• Managing assets in the trust and liquidating or distributing them
• Keeping detailed records of all transactions related to the trust
• Communicating with beneficiaries and anyone else associated with the trust

 

It seems straightforward at first, but trusts can be incredibly complex. Misappropriation of assets can cause you financial and legal trouble, even if you didn’t have bad intentions.

Defining Roles: Trust Administrator vs. Trustee

A trustee is in charge of the trust’s assets and is directly responsible for managing them according to the terms of the trust. They typically handle the core responsibilities of trust management.

A trust administrator can oversee the day-to-day administration of the trust and ensure that tasks are carried out efficiently. They may not have a legal responsibility to manage or distribute assets, but they can help in ensuring the trust operates smoothly, especially in more complex cases.

The key difference is that while the trustee has legal responsibility, a trust administrator generally acts as a support role. They often help with administrative tasks or advise on legal matters, but do not have legal responsibility for executing the terms of the trust.

How a Trust Administration Attorney Can Help

A trust administration attorney provides critical support to trustees, and can support or act as a trust administrator. Their expertise helps ensure that legal requirements are met, that the trust is administered in compliance with federal and Indiana state laws, and that any disputes between beneficiaries or trustees are resolved. Attorneys can also provide guidance on the proper distribution of trust assets.

Benefits of Hiring a Trust Administration Attorney

• Avoiding Mistakes: Trust administration can be complicated, and even small errors can lead to significant legal and financial consequences. An attorney can help avoid these pitfalls.
• Legal Compliance: An attorney ensures the trustee or trust administrator is acting within the bounds of the law and the trust document.
• Managing Complex Trusts: For larger trusts with diverse assets, an attorney can streamline the process, ensuring all assets are properly handled and distributed.
• Peace of Mind: With a legal expert guiding the process, you can focus on fulfilling your duties while knowing you are protecting both the beneficiaries and yourself from potential legal issues.

Trust Administration Attorney Fees

Fees for trust administration attorneys can vary. Typically, they are based on one of the following structures:

• Flat rate: A one-time fee for specific limited and/or delineated services.
• Hourly rate: Payment for the attorney’s time, often used in complex or ongoing cases.
• Percentage of the trust’s value: A fee based on a percentage of the overall value of the trust’s assets.

The cost of hiring a trust administration attorney will depend on factors like the complexity of the trust, the state’s legal guidelines, and the specific tasks the attorney will need to handle. Typical fees may range from a few thousand dollars to a percentage of the trust value, depending on the level of involvement required.

Hiring a trust administration attorney can save you from costly mistakes, ensure legal compliance, and reduce stress. For large or complex trusts, their guidance is invaluable, helping you avoid legal pitfalls that could harm the trust or its beneficiaries. 

Get Expert Help From Lafayette’s Top Trust Administration Attorneys

For over 70 years, BB&C has been a reliable partner for individuals in Indiana dealing with trust and estate issues. Our experienced attorneys are experts in trust administration and provide dedicated, high-quality legal assistance.

Administering a trust can be complex and daunting, especially with the financial and legal obligations involved. If you need help managing a trust or understanding your duties as a trustee, contact BB&C today for a free consultation. Our team is here to guide you every step of the way.

Disclaimer: The information in this blog is intended for general purposes only. It does not constitute legal advice. Please consult an attorney for specific advice based on your unique circumstances.