When a loved one creates a trust, they want to protect their assets and provide for their family or other beneficiaries. But what does trust administration do in Wisconsin?
Trust administration makes sure that their wishes are carried out. Along with that, it can help families proceed through an emotional and confusing time.
Whether you’re a trustee or a beneficiary, knowing how trust administration works can help you feel more confident and informed throughout the process.
What Is Trust Administration?
When you have a trust, you need a designated party to manage it. That is where trust administration is important. The trust is maintained according to the instructions laid out by the person who created it. This is known as the trust document. It should have detailed instructions on how to proceed with various parts of administration, including the naming of a trustee.
In most situations, a person is appointed to the role, but a trustee can be a financial institution or other third party. They will be responsible for the management of the trust.
This position has great responsibility. In Wisconsin, trustees are legally required to act in the best interests of the trust’s beneficiaries. This is known as a fiduciary duty. That means they must manage the trust’s assets with care, avoid conflicts of interest, and make decisions that align with the grantor’s wishes.
Trust administration in Wisconsin must also comply with the Wisconsin Trust Code and other state regulations. The trustee needs to understand these legal requirements so that everything is done correctly, and there are no potential legal issues.
Additionally, every financial transaction related to the trust must be carefully documented, such as income, expenses, and distributions. Keeping clear records helps maintain transparency and ensures that the trustee can account for how the trust’s assets have been managed.
The Wisconsin Trust Administration Process
The real process begins after the grantor passes away. However, some trusts, such as a living trust, are also designed to provide support during the grantor’s lifetime.
First, the trustee starts by carefully reading the trust document to understand the grantor’s instructions and their own responsibilities. This document serves as a roadmap for administering the trust.
Next, the trustee identifies all the assets owned by the trust and determines their value. This might involve appraising real estate, collecting bank account balances, and assessing the value of investments.
The trustee must notify all beneficiaries that the trust is being administered. This helps make sure that everyone understands their rights and knows what to expect.
Before distributing any assets, the trustee must use the trust’s funds to pay outstanding debts, taxes, and administrative expenses. This helps ensure that the trust’s obligations are fully satisfied.
Depending on the trust’s terms, the trustee may need to manage its assets for an extended period. This could involve maintaining property, overseeing investments, and ensuring that the trust’s assets are used for the beneficiaries’ benefit.
Once debts and expenses are paid, the trustee distributes the remaining assets to the beneficiaries according to the grantor’s instructions. This might involve transferring real estate, distributing cash, or managing ongoing payments.
After all assets have been distributed and all legal and financial obligations have been met, the trustee prepares a final accounting report that details how the trust’s assets were managed. Once the beneficiaries have received their inheritances, the trust is formally closed.
We Are Here to Assist with Your Trust Administration
Now that you know what trust administration does in Wisconsin, you can make sure your loved one’s final wishes are respected. Plus, this helps to ensure assets are used to support the people and causes they cared about.
At Collins Law Firm, we offer estate planning, administration, business, and elder law services.
Our experienced estate planning team helps individuals like you to build and protect your legacy. Schedule your free and confidential consultation today by contacting us or calling (414) 207-6292.