Trust Settlement is the legal and administrative process of settling a trust plan at the death of the trustmaker. Trust settlement is typically facilitated by the trustees of the trust in primary partnership with an estate planning attorney and with the assistance of other professional advisors.  The trust settlement process involves some specific and universal tasks like creating an inventory of the decedent's assets at time of passing; establishing the values of those assets; and identifying any debts or liabilities that may be owed.  Settlement also includes performing an accounting of the estate and filing any applicable income, state, and federal tax returns.  Distributing assets to beneficiaries pursuant to the terms of trust is also facilitated during the process of trust settlement.   Depending on the complexity of the administration, the legal and practical work of trust settlement can take up to a year to complete.  More involved cases or settlements for trusts that have not been maintained may take longer. 

 

Trust plans that are kept up to date through formal maintenance programs typically experience significantly lower settlement costs and avoid the difficulties associated with outdated trusts.  Trust settlement opportunities cultivated through long-term client relationships present new opportunities for the firm to secure successor and future estate planning business.