TRUST ADMINISTRATION & PROBATE FREQUENTLY ASKED QUESTIONS
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FAQ
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Probate creates a complete settlement of someone’s affairs after they pass away. This legal procedure confirms whether a Will is authentic and legally binding. The process starts when someone dies with a Will in place, or when they pass away without any estate planning documents (called dying intestate), or if their Will goes missing.
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How long probate takes depends on the estate’s size and how well the deceased person kept their financial records. The process can be fairly straightforward or quite challenging, but either way, it usually lasts several months and can extend for years, demanding substantial time from whoever manages the estate.
- Probate involves six main stages:
- Confirming the Will is legitimate
- Naming someone to manage the estate
- Creating a complete list of all property
- Settling outstanding debts
- Handling estate tax payments
- Distributing what remains to heirs
Every stage requires official paperwork, court approval, and detailed financial records throughout the process.
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Every state has a specialized court that handles estate matters from beginning to end. Some states call these Orphan’s Courts or Chancery Courts. This court oversees all estate-related decisions, which must be documented and reported on a regular schedule. Judges with specific training in estate matters preside over these cases.
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Trust administration follows five core stages:
- Creating a complete asset list
- Calculating estate tax amounts
- Separating trust property as needed
- Submitting tax forms to federal and state agencies
- Transferring assets to those who inherit
While these steps sound simple, the timeline can stretch across many months or even years for several reasons. Asset inventory must happen first, and this task becomes difficult if the deceased person’s records were disorganized or if they owned many different types of property. The 706 estate tax form has a 9-month deadline, though extensions allow 15 months. Strategic timing often means filing near the deadline, especially if the surviving spouse has health issues and might die before then, allowing both estates to use combined tax benefits.
Assets cannot be distributed until the 706 form is submitted, and should wait for the IRS to send their “Closing Letter” confirming they accepted the return. This letter usually takes 6 to 8 months to arrive, though sometimes it takes three years. State inheritance or estate taxes might also apply, even when federal taxes don’t.
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Living trusts do reduce expenses compared to probate, but managing even a basic trust properly requires substantial effort. Legal assistance remains necessary, and attorneys deserve reasonable payment for their work. Trust administration fees typically cost much less than probate fees, and the process requires less effort since court involvement stays minimal.
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Whether you can select specific assets for the “B” trust depends on your trust document’s specific wording. Some trusts contain language that permits trustees to choose which property goes into the “B” trust.
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Relatives of the deceased can easily transfer vehicles in most states. Take the death certificate to your DMV and complete the transfer, paying any fees they require. Non-relatives should bring the will or trust papers showing their authority to make the transfer.
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Social Security continues sending payments until someone tells them about the death. The person managing the estate should notify the local Social Security office about the death. If any checks arrive afterward, send them back with a letter explaining the situation. This matters because keeping checks after someone dies can create legal problems when Social Security eventually finds out.
