Trust Administration

Trust Administration vs. Probate

If a person creates a Trust during his or her lifetime, when that person passes, their Trust Estate is disbursed to beneficiaries through the process called Trust Administration. This is done non-publicly according to the the person's wishes contained in the Trust. On the other hand, when a person dies without a Trust, the family and friends of the decedent must go through the lengthy and costly public court process of probate before any assets are distributed to the person's heirs unless exceptions to this rule apply. Probate can take a minimum of 5-6 months and often much longer to complete. The executor and attorney are paid a percentage of the entire estate as compensation for their roles which can be very costly.

For a Trust Administration, as opposed to probate, the process is private. Your successor trustee takes charge of all assets and privately notifies all beneficiaries and state agencies about starting the process. The trustee and attorney are not compensated on a percentage basis but are paid according to actual time that they work on the matter. If there are no objections raised by the beneficiaries to the Trust or the trustee’s administration, the trustee may then privately distribute the Trust estate to the beneficiaries. If there are ongoing protective Trusts in place for minor beneficiaries, the trustee may continue to privately administer those Trusts. Overall, Trusts offer a huge advantage in giving families control, cost savings, and privacy.