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TRUST ADMINISTRATION ATTORNEY IN SOUTHLAKE, TEXAS

What legacy will you leave behind? For some people, it’s a difficult question to answer, but it’s an important one. You may already know how you want your estate and your wealth to be distributed after you pass away. 

Whether you have a specific plan in mind, a general idea, or haven’t yet started planning for your legacy, you can benefit from the guidance of an experienced estate planning attorney to help you navigate the process of creating a trust.

Attorney Chelsea Redding is determined to help her clients with all of their estate planning needs, including the process of establishing a trust. She can guide you through every stage of the legal process and help you navigate any key decisions along the way. Redding Law Office is proud to serve clients in Southlake, Texas, as well as Flower Mound, Keller, Colleyville, Tarrant County, and Denton County.

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Trusts

Trusts are important estate planning tools. In a trust, an individual (also known as the settlor) can state how his or her estate will be managed and distributed after their death. A trust is created on paper and can be established as either a living trust or a testamentary trust. 

Advantages of Trusts

Establishing a trust is beneficial for several reasons. When an individual passes away but does not state how they want their estate to be managed, their estate must go through probate court. The probate process is often both time-consuming and costly. On the other hand, a trust cuts down on both time and expenses. 

Additionally, probate court is a public process. A trust allows the individual’s wishes to be handled privately after their passing, providing more comfort for the family.

The Role of the Trustee

The trustee plays a critically important role in the management of the trust. Typically, the trustee will need to manage the trust in the six months after the individual’s passing, but the timeline could be longer, especially if the trust contains provisions regarding payments to minor children.

There are several important steps that the trustee must take:

Identify Beneficiaries

Not long after the settlor passes away, the trustee must identify the beneficiaries of the trust and inform them of what the settlor designated for them.

Pay Administrative Expenses

There are many costs that must be managed after a person passes away. The trustee will manage funeral expenses, tax preparation expenses, and all other bills.

Address Debt

If the person who passed away left behind any debt, such as medical or consumer debt, the trustee must also manage payments for that debt.

Distribute Assets

The trustee is responsible for distributing the settlor’s assets and must make sure he or she follows the letter of the law in doing so. For example, if the person who passed away left real property to one of their beneficiaries, the trustee must ensure that the beneficiary receives the title or deed to that property and that it is properly transferred over to them.

Tax Preparation

The taxes surrounding a trust can be quite complicated. If the settlor was working at the time of their death, then their estate may owe income taxes in addition to estate taxes. 

No matter what the situation is, it is the trustee’s responsibility to make sure that all the appropriate taxes are paid. Because estate taxes are typically very complicated, it’s advisable to work with an estate planning attorney so that no taxes are left unpaid.

Create a Reserve Fund

It’s a wise idea for the trustee to create a reserve fund. This will help pay any due but unpaid estate expenses or taxes. 

TRUST ADMINISTRATION ATTORNEY IN SOUTHLAKE, TEXAS

Establishing a trust involves making significant and complex decisions. Appointing a trustee is an important choice. Attorney Chelsea Redding can guide you through each process and help you rest easier knowing that your wishes will be respected. Redding Law Office is dedicated to providing excellent, personalized service to clients in Southlake, Texas, as well as Tarrant County, Denton County, Flower Mound, Keller, and Colleyville. Contact the firm today to schedule your trust administration consultation.