Trust administration is the process of carrying out the wishes contained in a trust.
Trust administration is the process of carrying out the wishes contained in a trust.Usually, estate and trust administration involves several steps, which may be spread over long periods depending on the trust’s requirements.
Each trust is unique, and the particular requirements contained in your trust will determine how it must be administered and managed.
The person who manages the trust is called the trustee.
Georgia estate laws and trust laws impose severe penalties on a trustee who mismanages or harms a trust.
Trust administration attorneys identified that, most often, the trustees have several goals.
Some of the most common are:
- To ensure that the trust is managed correctly, that everything is done right, and to stay out of trouble.
- Be fair to the beneficiaries, and keep things as peaceful as possible among all the parties involved.
- Honor the wishes of the person who created the trust, and follow the directives required by the trust.
Most Common Questions That Trustees Have Regarding the Trust Administration Process
It is very common for a trustee to be willing to serve and know that they want to do a good job but may be at a loss for what to do and how to do it.
Some of the most common questions are:
- What are my duties as trustee? Essentially, what must I do, and how do I know that I am doing it well?
- What does this particular part of my trust mean? Each trust is unique, and as a trustee, you know that your job is to carry out the instructions of the trust, but what do you do when you do not know what the trust means?
- What do I do to manage the trust assets correctly?
- How do I balance the needs of multiple beneficiaries?
It could be that you have to balance the interest of current beneficiaries (who receive income now) and future beneficiaries (called contingent beneficiaries or remainder beneficiaries) who will receive a part of the trust when the current beneficiaries pass away.
Or, it could be that you have to balance the funding needs of several current beneficiaries and want to make sure you are apportioning the trust funds fairly and appropriately.
All of these issues are very important because the legal consequences of getting it wrong can be severe.
Georgia Estate and Trust Laws
Under Georgia estate and trust laws, a trustee owes fiduciary duties to all current and future beneficiaries of the trust.
That means that a trustee must always follow the terms of the trust and prioritize the beneficiaries’ interests.
Unless the trust says otherwise, a trustee must treat all beneficiaries equally and not show favoritism toward any beneficiary at the expense of another.
If a trustee violates the duties imposed by the trust or Georgia law, a beneficiary could:
- Sue the trustee in court.
- Seek to have the trustee removed from office.
- Request that other sanctions be imposed, such as forcing the trustee to pay damages to the trust from the trustee’s personal funds.
What Is a Recommended Way to Administer a Trust?
The best solution for a trustee is to have a team of advisors, a legal counsel or a trust administration attorney to make sure everything goes smoothly.
That way, most common problems can be avoided before they start. In the event that something does become an issue, the trustee is in the best possible position to defend any allegations and will not be caught off guard.
Our law firm sees our role as a partner to the trustee in managing the trust.
Our legal team helps make sure everyone understands the terms of the trust and its requirements.
We are at the trustee’s side every step of the way to ensure that the trust is administered correctly and that everything is done fairly and respectfully.
Many times, our attorneys have found that when everyone involved understands the trust and feels like it is being followed, there is very little conflict.
If a dispute does arise, however, Georgia Probate Law Group is prepared to defend the trustee and protect the trust.
Get Professional Help from an Experienced Trust Administration Attorney
Please set up a private, confidential consultation with our office to speak with a team member and discuss how our firm can potentially help you ensure that your trust administration process runs smoothly and trust assets are handled properly.
We have helped over 1,000 families with probate process and trust administration matters. Schedule a confidential consultation to learn how a trust administration attorney can assist you with your case.