My experience of just recently going through the steps of being the 1st successor trustee of our family trust is nearly complete. Being fresh on my mind, I am taking this opportunity to help the next person who has been appointed in this capacity.
Are you the 1st successor trustee on someone's family trust? When the trust is initiated, be sure you are aware and have a list of the investment assets the primary trustee owns. You should also be presented a full copy of the trust agreement.
On the date of death, go online and record the closing prices of any investments they may hold.
Before you can act as successor trustee, you must obtain a death certificate. This is of primary importance. The next step, generally performed by the trust attorney, is a letter to your county probate court, advising them of the death and that no probate will be necessary because the estate is in trust. To give you the authority to sign the decedent's checks (pay bills, make deposits), you must present a death certificate accompanied with a copy of the trust agreement to the financial institution backing the checking account. The trust agreement gives you the right to handle the decedent's financial affairs and more.
You will now be responsible for arranging the funeral/memorial service of the descendant and paying the descendant's expenses. You should also notify Social Security if the trustee was receiving social security income. However, the Social Security Administration has many other avenues to learn about the death; hospital, coroner, financial institution, funeral home.
Next, you will need to notify the companies in which the decedent has investments informing them that the primary trustee has passed and asking that they forward the paper work necessary to record you as the successor trustee. Filing these forms/papers with your signature will give you the right to conduct business with the investment companies without any tax implications. The decedent's trust attorney should be handling this paperwork. When this paperwork is handled properly, you will receive the death certificate back by way of postal mail. Receipt ensures that the trust company attorney has completed the task of putting you on all the investments of each particular company as "successor trustee". You are now authorized to conduct business on behalf of the decedent in respect to their investments.
You will also have the responsibility to see that the decedent's last will and testament is carried out. This means you will collect any funds received into the trustee's bank account and supervise the disposal and distribution of all assets, property. This includes real estate, personal (car, investments, clothing, jewelry, papers, appliances, etc.) Obviously, no distributions of the estate should occur until all the trustee's financial obligations are resolved.
Some other notes of interest are, a Homestead refund is not allowable for the year of death. If the trustee had ample income, a federal and state tax return may be required, another responsibility of the successor trustee. You will experience serious delay in obtaining the death certificate if the decedent trustee donated their body to research. It will be your responsibility to initiate all calls to the county of death checking to see if the death certificate has been received. You will need to purchase certified copies of the death certificate. You will need one each for probate, bank(s), investments company and extra for family members.
With the above information, carrying out your responsibilities as 1st successor trustee should be less cumbersome.
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