What a Trustee Needs to Know About Making Final Distributions to Beneficiaries

Although beneficiaries of a trust will naturally have questions earlier on in the process, the concept of when they’ll receive their check or the assets set aside for them usually needs to be answered later on. Making distributions of remaining trust assets comes at the end of the process when a trustee is settling a revocable living trust.

This is because the successor trustee has to ensure that every single expense and fee associated with administering the trust or the related probate estate have been settled and that all taxes have been paid or money has been set aside to pay those final taxes and bills. If the trustee chooses to make distributions to the beneficiaries and expenses come up down the line, that person will then have to pay those expenses out of their own pocket.

If it is anticipated that the administration of the decedent’s trust will take longer than 12 months, the successor trustee might need to reach out for additional resources, such as hiring a trust attorney and an accountant.

This can ensure that enough assets are appropriately set aside to pay ongoing expenses of the trust and then allow for those final important distributions to be made to the beneficiaries of that document. Schedule a consultation today with a trust planning lawyer in Virginia Beach to learn more.