Trust Formation and Administration

A trust is an estate planning tool that can be used to specify how your property will be distributed. It is similar to a Will but offers additional flexibility and can be used to address more complicated estate planning situations.

Trust Formation

When creating a trust, the trust-maker (also known as the trustor, grantor, or settlor) places assets in a trust. Trust assets are managed by a trustee on behalf of a trust beneficiary.

Unlike a Will, which is subject to probate court oversight and approval, assets transferred by trust remain private.

A trust can be used to transfer assets during the lifetime of the trust-maker, or after the trust-maker has died.

Trusts are commonly used to address unique estate planning needs, such as to direct assets to a recipient at different times, to protect assets so they cannot be reached by creditors, so the beneficiary can only use trust assets in certain circumstances, or to allow a beneficiary to receive assets from the grantor while still maintaining eligibility fr government assistance programs such as social security benefits.

A key feature of a trust is that assets placed in the trust do not pass through probate. Assets transferred through a trust can remain private, and the transfer occurs more quickly than assets that must pass through the probate court.

Trust Administration

Once assets have been placed in a trust, the trust must be administered. This is the process by which the assets are transferred under the terms of the trust. If the trust-maker is still alive and is also serving as the trustee, trust administration is fairly straightforward. But when the grantor dies, is incapacitated, or when a successor trustee is appointed, the successor trustee undertakes additional duties such as maintaining an inventory and managing trust assets, selling trust property, paying debts of the trust, filing trust tax returns, valuing trust property, and distributing trust assets.

Administering a trust can be complicated, and the experienced trust administration attorneys at Yturri Rose are here to help.

Yturri Rose: Trusted for Generations

The estate planning attorneys at Yturri Rose have extensive experience creating and administering trusts for clients in Oregon and Idaho. To learn more, contact us today to schedule a confidential consultation to discuss your situation and how we can help.