Revocable living trusts are used by estate planning attorneys to accomplish a variety of objectives. Although “revocable living trusts” avoid probate and facilitate the administration of the trustmaker’s estate, there may still be certain legal formalities which should be followed. Post-death trust administration typically includes some of the following actions:
- Communicate with beneficiaries of the trust.
- File the “Pour-over Will” with the appropriate court.
- Apply for tax identification number with Internal Revenue Service for purposes of filing any applicable trust income tax returns.
- Contact third parties to notify of the death of the trustmaker, the identity of the successor trustee, and any relevant tax matters.
- File the decedent’s final tax return on Form 1040, and any applicable post-death income tax returns on Form 1041.
- Determine Federal and State estate or inheritance tax obligations, if any.
- Determine and pay, if appropriate, decedent’s debts and administration expenses.
- Create any “sub-trusts” created under the trust instrument for beneficiaries.
- Divide and distribute (or retain in trust) the trust assets to beneficiaries
- Provide accounting to trust beneficiaries.
A revocable trust is designed to ensure that your estate can be administered as simply as possible. However, there are a variety of post-death administrative steps and procedures. If you have any questions regarding these kind of trusts, please contact us.