Have you accounted for all possible expenses in your estate trust? If you intend to gift assets to loved ones, have you also thought about how a trustee will be paid for their services?
There are multiple reasons why a person might choose to establish a trust for their estate planning. They may intend to use the trust while they are still alive, typically selecting a revocable living trust that can be altered as needed. In other situations, you may be establishing a trust for the purpose of providing assets to your loved ones after you pass away. You may want to keep in mind that there can be some costs associated with administering a trust.
While living trusts will usually enable beneficiaries to avoid the process of going through California Probate Court, there may still be costs linked to trust administration. The successor trustee, who manages distribution of assets in the trust is eligible to charge trustee fees. In some cases, a family member serving in the role of trustee will waive these fees, although some decide that the amount of work they put into this process is substantial enough that they deserve to be paid for their role. After a person takes on trustee status, they realize that it may involve numerous challenges and can be very time consuming. In some cases, it may be out of the scope of expertise for the person appointed as trustee, particularly if this was a personal family member or friend.
This means that an accountant, attorney or other outside professionals may be required, and the trustee is eligible to pay these individuals using trust fees. These professionals can help to ensure that the trust has been distributed according to the administration of the trust guidelines as well as existing laws. Talk to our estate planning team in Pasadena now for more information.
