In addition to carrying out the terms of the trust, abiding by California trust laws, and protecting the trust assets, trustees must also pay attention to the fees that are incurred by a trust. Trustees are not personally responsible for paying these trust administration expenses but must pay them from the funds available within the trust. Accounting for and paying the costs of administration of an Anaheim trust are an important part of the duties of a trustee.
What trust administration expenses should a successor trustee be on the lookout for during a trust administration? The following are six examples:
- Funeral costs. These may include the cost of the burial plot, cremation, ceremony, or reception. Funeral expenses can quickly add up to thousands of dollars.
- Estate, gift, and income taxes. It is vital that any potential taxes be calculated and paid promptly during the trust administration process.
- Professional tax advisor fees. If you hire an accountant to prepare any tax returns on behalf of the trust, the advisor’s fees will have to be paid.
- Legal fees. Trustees will have to pay for the legal fees of the attorney who is helping to administer the trust.
- Costs of maintaining the assets of the trust, such as insurance policies, real estate taxes, or other fees.
- Court fees, if the trust administration is overseen by the probate court.
Failing to pay Anaheim trust administration expenses could potentially subject a trustee to liability if the lack of payment harms the assets of the trust. It is therefore vital to seek the guidance of experienced Anaheim trust administration attorneys as you carry out your role of trustee. Call our office today at (714) 459-5481 for a consultation.