Spokane Probate Attorney & Trust Administration Team
Probate And Trust Administration
Probate and trust administration can involve complex legal and financial issues, which can prove challenging and stressful for an inexperienced administrator. When a loved one chooses you to oversee their estate or trust, having knowledgeable legal counsel in your corner can give you the support and guidance you need during probate or trust administration. Contact ELG Estate Planning today for an initial case evaluation to discuss how our firm can assist you with administering a loved one’s estate or managing a trust.
Understanding Probate
Probate is the legal process through which a deceased person’s assets pass to heirs and beneficiaries. In probate, the court appoints an executor (generally the person named in the will – the Personal Representative) or administrator (if the person is not named in the will or there is no will) to administer a decedent’s estate. The administration may occur under the decedent’s will or state intestacy laws (meaning there is no will).
Probate begins when an individual (typically a close relative of the decedent or the person named in the will as Personal Representative) petitions the court to open a probate of the decedent’s estate. Once the court appoints a person to serve as the executor of the estate, that person manages the probate by collecting, inventorying, and appraising the decedent’s assets. From the assets of the estate the executor pays the decedent’s remaining valid debts and the estate’s administration expenses, including taxes and legal fees. Note that the executor is not personally liable for the decedent’s debts.
After paying all expenses and taxes, the executor then distributes estate assets per the terms of the decedent’s will or state intestacy law, which determines which family members inherit from a decedent who does not leave a will. The executor must file tax returns, if needed, on behalf of the decedent and estate and, in some cases, prepare an estate accounting for beneficiaries, creditors, or the court.
The probate process in Washington State typically is straightforward, though compliance with statutory provisions are important. Where the estate is solvent, meaning assets exceed liabilities, the probate may proceed as “non-intervention”. The court is not involved in the probate day-to-day, and the executor performs their duties without the need of court order or approval of actions.
Understanding Trust Administration
Trust administration is the process through which an individual or organization appointed to manage a trust, known as a trustee, manages the trust’s assets. Trust administration involves managing assets, distributing principal and income from trust assets per the terms of the trust, and making tax and other legal filings on behalf of the trust. A trustee must manage the trust in compliance with the law and under the terms of the trust document, which may give the trustee broad discretion to manage trust assets and pay distributions or require the trustee to use trust assets in a specific way. A trust distributes income and principal from its assets to one or more beneficiaries designated by the trust document.
People frequently use trusts to protect and manage wealth, as various types of trusts can shield assets from creditors and other liabilities. Trusts can also provide an alternative to probate when passing assets to beneficiaries after death.
Trusts fall into two broad categories: revocable and irrevocable. In a revocable trust, the person who creates the trust – called the grantor – retains the right to amend the trust’s terms or to dissolve the trust and recover the assets placed in the trust. In an irrevocable trust, the grantor can sever all rights to the assets placed in the trust but gains various legal protections, such as placing those assets beyond the reach of creditors and removing them from the grantor’s estate. This can provide tax benefits and eligibility for Medicaid or other government benefits.
Differences Between Probate and Trust Administration
Although probate and trust administration both involve the management of assets, they have several differences. First, probate involves the administration of assets in a deceased person’s estate, whereas trust administration involves the management of assets placed in a trust. Probate also involves a court process, whereas trust administration typically occurs privately unless legal disputes arise. Both probate and trust administration are best handled with the guidance of an attorney. Because probates require strict compliance with statutory provisions, few executors seek to handle probate on their own without legal guidance. On the other hand, the laws governing trustee duties and trust administration may not be apparent to the trustee, especially if they are not a professional trustee. As a result, distributing income or assets through probate follows the wishes of the decedent, whereas trust administration following the death of the grantor can be more problematic if the successor trustee does not seek legal counsel. Whether the estate administration involves probate or a trust, an estate planning and trust administration attorney is important in ensuring a successful administration.
Challenges of Probate & Trust Administration
Probate and trust administration can give rise to various challenges for executors or trustees. For starters, these processes can lead to legal disputes between executors or trustees and heirs or beneficiaries. An heir or beneficiary may contest the admission of a will to probate by arguing that the decedent lacked testamentary capacity when they wrote the will, wrote the will under duress or undue influence, or revoked the will presented to probate. Heirs and beneficiaries may contest the appointment of an executor or trustee or challenge their actions on behalf of the estate or trust. They may also file legal actions to demand distributions from an estate or trust.
Estate and trust administrators may also face challenges with financial accounting for the estate or trust, especially when investing trust assets per the trust document’s terms. Administrators must also prepare tax returns and pay tax liabilities incurred by an estate or trust.
Finally, administrators may have difficulty managing real estate, businesses, or other non-liquid assets in an estate or trust. As a result, they may have to rely on professional managers or advisors to handle such assets, potentially increasing estate and trust administration expenses.
How Can an Attorney Help with Probate & Trust Administration
When a loved one appoints you to probate their estate or serve as administrator of their trust, you don’t have to handle these duties alone. A probate and trust administration attorney in Spokane, Tri-Cities, or Seattle, Washington, from ELG Estate Planning can guide you through the legal process by:
Reviewing the terms of the will or trust to advise you regarding your obligations as an administrator or trustee
Assisting you with inventorying assets in a loved one’s estate or placed in a trust
Advising you should legal disputes arise during probate and trust administration, such as will contests, actions to remove you as the administrator or trustee, and beneficiary demands for distributions
Helping you with estate or trust administration paperwork, including preparing accountings and tax filings
Guiding you through the process of distributing assets, like real estate, and income to heirs and beneficiaries
Assisting you with the management of complex estate and trust assets, such as real estate or businesses
Why Choose a Lawyer from ELG Estate Planning?
Handling a loved one’s estate or trust presents a daunting responsibility, and it’s a situation that can be intimidating even if you’ve held a similar responsibility in the past. Having knowledgeable legal guidance can make probate or trust administration far less stressful. Choosing the right attorney can give you the critical advice and support you need. Clients have turned to the legal team at ELG Estate Planning for legal counsel with probate and trust administration because:
Our firm has become a regional leader in trust and estate matters.
We focus exclusively on estate planning and elder law, which allows us to develop in-depth experience and up-to-date knowledge in probate and trust administration matters.
Our lawyers strive to provide capable, skilled and compassionate client service and legal representation. We understand the stress and complexity that can arise during probate and trust administration, and we are committed to helping clients successfully perform their responsibilities.
Contact Our Firm Today for Help
When you need help administering a loved one’s estate or a trust, turn to the Washington legal team at ELG Estate Planning for experienced advice and guidance. Contact us today for an initial consultation with a seasoned estate planning attorney to discuss your legal options.
