| |
| |
|
Distribution by the Successor Trustee
Distribution of Trust A by Successor Trustee
Re-Register the Assets in the
Beneficiaries' Names
Maintain Proper Accountings of Asset
A
Distribution of Trust A by Successor Trustee
Approximately nine months following the date of death, or after
the federal
estate tax return is filed, it's time to consider distributing
Trust A's assets. The assets in Trust A can be sold or,
if all the parties agree, they can be divided amongst them.
For instance, one party may want the real property while another
wishes the California tax exempt bonds, but normally the division
is made based on the value of the assets as of the date of distribution.
If no agreement is reached, the assets are equally divided between
all the parties, with each receiving his or her equal share
of every individual asset. Thus, each asset is divided by two,
three, four, and so forth, depending on the number of beneficiaries.
A list detailing the allocation of the assets to the
beneficiaries should be prepared once a division acceptable
to all parties has been reached. This list will include
each asset, and will show its value as of either the
date of death or from the estate tax return. It will
also specify how the asset will be allocated to the
respective parties. After completing the list, it will
be signed by the trustee or trustees, who will retain
it in case any questions are made about how the assets
were divided.
Sometimes, instead of being distributed, Trust A continues
in whole or in part. When this occurs, the trustee or
trustees need to re-register all the assets in the trustee's
or trustees' names, keep records of any activity in
the trust, provide the trust beneficiary or beneficiaries
with annual accounting statements, and invest the funds
in accordance with the trust's provisions and California
law.
Back to the Top
Re-Register the Assets in the Beneficiaries' Names
After the distribution list has been agreed to and signed,
the assets need to be registered in the names of the various
beneficiaries. Once again, each bank, credit union, brokerage
firm and transfer agent need to be contacted and a transfer
of title initiated, including a new deed created for each
parcel of real property.
After this re-registration is accomplished, the assets are effectively
delivered to the beneficiaries. A receipt from each beneficiary
should be obtained by the trustee
or trustees showing that the assets have been delivered.
Back to the Top
Maintain Proper Accountings of Asset A
Unless the beneficiaries waive their rights to annual accountings,
an annual accounting of the trust must be filed with the beneficiaries,
and also upon a change of trustee or the termination of the
trust. The accounting must show the assets held in the trust
as of the date of death, along with both their values as of
that date and their current market values. It must include any
income received, any disbursements made, and any assets sold
with their gain or loss indicated. For additional information, please contact THE MAMOLA LAW FIRM at (800) 440-5294.
Back to the Top |
|
|
| CAUTION: This website is to provide visitors with basic information.
Every legal situation is different, and no information on this website
is to be construed as legal advice on any specific question. Additionally,
the information on this website is for informational purposes, no
warranty is made as to the accuracy of any information contained therein,
or its applicability to any particular situation. This website must
not be used as a substitute for legal advice from qualified lawyer
or legal counsel. No attorney & client relationship or privilege
is formed by visiting this site or by sending my office any unsolicited
e-mail. Therefore, initial emails must not contain any confidential
information. I may already represent parties adverse to you and cannot
advise or represent you until I check for conflicts. I am licensed
only in California, and may offer my services only to those residing
or doing business in California, unless associated with local counsel
or lawyer in accordance with other states' laws.
|
|
|
|
