Setting up a trust is only the first step. Oregon trusts have to be managed and closed properly too.

Setting up a trust to benefit people and organizations can be an integral estate planning tool in Oregon. However, establishing the trust is only the first step. When it’s time to evaluate the trust’s assets and distribute them, trust administration comes into play. Here’s an overview of how that works in Oregon, and what it means for the person or people responsible for administering the trust, and distributing the property the trust has held.

When trust administration begins

Once an Oregon trust is established, administrative tasks happen at various intervals. Now and again it’s good for the trustor to review the trust and work with their Oregon trust attorney and other key members on adjusting the trust’s terms.

Some trusts may continue for years, even decades, depending on the trust’s structure and purpose. For example, a special needs trust may work to the benefit of a person who has special needs, throughout that person’s lifetime.

Many trusts, however, exist to be maintained, assessed, distributed from, and then closed out after the death of the trustor, or the person who established the trust. After the trustor passes away, the true work of most trusts begins.

Who is involved?

Here’s a high-level overview of who comes into play for a trust in Oregon:

• Trustee (or settlor) establishes trust and the rules governing the assets the trust will hold and/or distribute
• Trustee (or successor trustee)  manages the trust and its assets during trust administration
• Beneficiary (or beneficiaries) are the persons, organizations, and/or other entities the trust is set up to benefit

Different stages of a trust

Many trusts in Oregon follow a set of stages, from initial trust establishment to final closure of the trust:

• Reviewing the needs of the trustor and what type of trust suits the purpose best
• Establishing the appropriate legal documentation and framework to support the trust, the assets it holds, and the processes it will follow
• Naming successor trustee(s), administrators, and other people, organizations, and/or entities relevant to the terms and purpose of the trust
• Administering the trust, under both the rules of the trust as well as legal processes trusts and trust administrators much follow under Oregon law
• Evaluating and assessing assets and liabilities relevant to the trust
• Distributing assets
• Closing down the trust

Review and understand the Oregon trust’s terms, rules, and instructions

Every trust in Oregon lays out specific instructions for how property and assets held within the trust are to be managed and distributed. Before you can fully begin the process of Oregon trust administration, review the terms of the trust so you can have a high-level sense of the process the trustor wants followed.

What trustees do during trust administration

During trust administration, a person might act for the trust to open, close, dispose of, and/or otherwise manage financial accounts, property, payments, and more. Essentially, the trustee performs the actions necessary to fulfill the terms of the trust within the parameters of Oregon law.

The role of Oregon or county courts in trust administration

Unlike an Oregon will, trusts do not typically have to go through probate and courts are not necessarily involved unless petitioned by a beneficiary or trustee.

What is a successor trustee in Oregon?

The successor trustee is the person named by the trust and/or trustor to manage the administration of the trust after the trustor passes away.

Successor trustees must act as fiduciaries, or in the interest of the trust and its provisions. Acting counter to the terms of the trust can result in legal penalties and/or lawsuits.

What is trust administration in Oregon?

Trust administration in Oregon is the process a trust and the trustee follows to process and distribute the assets held by the trust, under the terms of the trust. Once these tasks are fulfilled, the trust can also be closed.

Tasks often part of trust administration in Oregon include:

• Understanding the terms and rules of the trust
• Conferring with an Oregon estate attorney on legal compliance and fiduciary compliance
• Notifying heirs, beneficiaries, and other entities relevant to the trust
• Reviewing challenges or other communications pertaining to the trust
• Collecting and inventorying property, financial, and other assets held by the trust
• Providing death certificates and other evidence to relevant entities so that property may be titled appropriately
• Obtaining a tax identification number (TIN) for opening accounts
• Filing paperwork with the court, such as a will
• Valuing assets, including real property, financial instruments, intellectual property, and more, for asset values as of the date of death of the trustor
• Conducting trust accounting
• Settling debts, filing tax returns, and paying taxes
• Distributing remaining assets to beneficiaries according to the terms of the trust
• Keeping records and fulfilling relevant reporting requirements
• Closing the trust once all tasks are complete, requirements fulfilled, and assets distributed

Trust administration in Oregon follows defined legal steps

Trust administration in Oregon can be complex, with strict guidelines from the law as well as the terms of many trusts. Plus, a trustee acts not in their interest, but as a fiduciary responsible for working to the fulfillment of the terms of the trust. When managing trust administration in Oregon, working with an experienced, trusted legal team can be crucial:

Image by Daniel Bone from Pixabay