The death or serious incapacity of a loved one is a traumatic event. Dealing with the event, your own feelings, and the feelings and needs of your family can be stressful, and can result in overlooked details and additional confusion. If you are alone, telephone a friend who can spend the next few hours with you. Shock and trauma can take unexpected forms, and have unanticipated consequences. Remember that your loved one would want you to take care of yourself, and would not want his or her condition or passing to cause you physical, mental, or emotional harm.
If you are reading these final instructions, it may be that you have been requested to serve as an executor of an estate or successor trustee of a trust. You are probably filled with questions and concerns. What do you do? What duties will you need to fulfill and when? Will you be able to perform these duties? Many people see this request as a gesture of respect and trust – a sign of that person’s confidence in you, your honesty, your integrity, and your ability to carry out the tasks required in a time of need. You may also have a personal interest in seeing that the affairs are handled efficiently and the assets distributed fairly, since you may also be a beneficiary.
You should take your responsibilities seriously, and you obviously want to live up to the confidence placed in you. This booklet is designed to give you a basic understanding of the revocable living trust, what happens if the primary trustee (usually the person creating the trust) becomes incompetent or dies, and what to expect in the trust administration process as trust assets are inherited by the beneficiaries, so that you will have the information you need to carry out your responsibilities when the time arises.
Of course, your specific duties depend upon whether you are required to step in during the primary trustee’s lifetime due to incompetence, or only upon death. Also, the size, organization, and type of assets left by the decedent, whether other family members are available to help with practical details (funeral arrangements, closing the house if necessary, etc.) and overall family relationships will affect your duties. Regardless of the size or what type of assets are involved, a large part of administering the trust requires common sense and leg work.
Unlike probate, administering the trust and distributing the assets usually does not require the involvement of any court. Even without court intervention, in the majority of cases, there are still tax and legal considerations. The information contained here is not designed to be a substitute for professional advice. The suggestions you will find here are general and should be adapted to your particular situation through conferences with your family, insurance agents, and legal and financial advisors. Consulting with a professional advisor when the time comes for you to step into the role of trustee can save time, taxes, expenses and frustration, as well as minimize potential liability for you.
Familiarize yourself with the procedures on the following pages. Review the Estate Administration Checklist. The estate plan is typically designed to minimize and avoid the trauma of probate and to ease the burdens involved in administering an estate. Nonetheless, following a death or incapacity, there are significant decisions that need to be made. Accordingly, this section is designed to assist in making those decisions and to help you get through the details as easily as possible.
See the following pages titled “What To Do Upon Incompetency of Grantor” or “What To Do Upon Death of Grantor” for more specific information. Also, in the event of the Grantor’s death, see the pages which the Grantor has completed stating personal wishes for the funeral or memorial service, and the like.
If the Grantor is incapacitated, familiarize yourself with the Durable Power of Attorney for Health Care and the Living Will so that the wishes of the Grantor are followed, and so that timely health care decisions are made.
In any event, locate the Grantor’s important papers and refer to the information filed under the various tabs for the listing of papers, records, and advisors.
Before making distributions to beneficiaries, refer to the Memorandum of Personal Property Distribution, which should be found in these Final Instructions. This document can be of immeasurable value in precluding family disharmony. Many children, with the best of intentions, and even though in sorrow following the death of a parent, squabble over personal effects and who should receive them.
If you have questions, please call your attorney or insurance or financial advisor!
The following information regarding trust settlement and administration is general in nature, and should not be construed as legal advice. You should seek legal advice for your specific situation, which considers your circumstances, needs, and objectives. Because trusts are unique, their administrations and settlements are unique. The associated pages will assist, however, by generally assisting you with what to expect.
Pursuant to Ohio Revised Code Section 5808.13 a Trustee of an irrevocable trust is required to notify the trust beneficiaries within sixty days of accepting an appointment and to provide them certain information. A trust is typically irrevocable upon the death of the last surviving grantor/settlor.
ESTATE TAXES ARE DUE NINE (9) MONTHS FROM THE DATE OF DEATH- TIMELY COLLECTION OF DATE OF DEATH VALUES IS, THEREFORE, EXTREMELY IMPORTANT!
