Trust Administration

It can be difficult to navigate the many emotional and legal challenges that arise when a loved one passes.   If your loved one created a living trust, then some of the work ahead of you has already been done.

When the creator of a living trust, sometimes referred to as the Settlor, dies, the first step is to identify who the Settlor named as Successor Trustee of the trust.  When the Successor Trustee is identified, and when he or she has formally accepted to take on the duties of trustee, the Successor Trustee is immediately held to several responsibilities.  They oversee administering the Trust in accordance with Michigan law, the terms of the Trust, and good faith.  They are responsible for identifying Trust assets, receiving payments for the Trust, setting up a bank account for the trust, giving legal notice to creditors, settling debt, and more. 

The trustee is not entitled to any trust assets, other than a reasonable compensation for time spent on trust duties and reimbursement for reasonable trust expenses paid out of pocket.  However, if a trustee is also a named beneficiary, then he or she is entitled to receive the distribution specified in the trust, just as if he or she was any other beneficiary.