In California, trusts are used to separate key assets from an estate. The exact type of trust determines how much control the estate owner has throughout their life. Standard estate plans outline several trusts that lower the value of the estate and help estate owners avoid the probate court. A trust administration attorney in Redlands, CA helps estate owners review details about managing a trust.
Why Is There a Trust Administrator?
A trust administrator is in charge of managing the trust once the estate owner has died. Administrators act as an executor to ensure that the beneficiary receives their inheritance as the estate owner defined in the trust documentation.
Notifying All Heirs
All heirs who have a legal right to the assets transferred into the trust are notified by the trust administrator. All heirs have the legal right to contest the terms of the living trust. However, there is a time limit for them to file the necessary forms through the court. If the heirs don’t file a claim by the deadline, they forfeit all rights to the assets found in the trust.
Giving Access to the Successor
The successor is notified once the deadline for a claim by the heirs has passed. According to the terms of the trust, the successor gains control over all assets transferred into the trust. Typically, there aren’t any stipulations that apply to trusts, and the successor uses or sells the assets if they choose. They have full access to all monetary assets transferred into the trust, too.
Managing Debts and Tax Implications
It is the responsibility of the successor to settle the estate owner’s debts and all tax implications. Estate owners face income taxes and estate taxes according to federal and state requirements. The administrator helps the successor determine how much is owed.
In California, trusts give estate owners an option for eliminating inheritance taxes and giving more assets to a family member. Typically, trusts are created to give a spouse or any other adult heir several assets at once. Estate owners who want to learn more about the process can contact a trust administration attorney in Redlands, CA or visit the website for more details now.
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