You might think that once you have a Living Trust in place, its a fix it and forget it situation that will not require any more work when you die. This is not true. While a Living Trust will generally help avoid probate, it still has to be administered properly.
Here are a few things that have to be done with your Living Trust once you pass:
- Trust property must be valued or appraised
- Federal taxes must be paid
- State taxes must be paid
- Debts must be paid
- Expenses of administration of the trust must be paid
- Assets must be distributed by the terms in the Living Trust
It is very important for the Trustee to seek legal advice before distributing the assets. If mishandled, it is possible that the Trustee could be personally liable. Once assets are given to a beneficiary, it can be impossible to get them back.
