Trust Administration

Paley & Prehn, PLC

When a loved one creates a trust, the goal is usually to facilitate management of assets during times of incapacity, avoid probate, and simplify the transfer of assets to beneficiaries upon their death. But even without court supervision, administering a trust carries serious legal and financial responsibilities. Successor trustees must follow both the law and the trust’s instructions carefully, act in the best interests of the beneficiaries, and remain transparent in how assets are managed and distributed.

At Paley & Prehn, PLC, we guide trustees through every step of trust administration. We take a hands-on approach—meeting with you regularly, answering questions as they arise, and walking you through each responsibility. From preparing notices and fiduciary accountings to addressing debts, taxes, and distributions, we provide practical support so you never feel like you are carrying the burden alone.

Duties of a Trustee

A successor trustee steps into a fiduciary role as soon as the original trustee can no longer serve. This means:

• Notifying beneficiaries and heirs as required by law
• Collecting and valuing trust assets
• Paying expenses, debts, and taxes
• Following the instructions in the trust document regarding distributions
• Keeping careful records and preparing fiduciary accountings

Trustees are personally liable if they mishandle trust assets. Proper guidance ensures that the trust is administered smoothly and that the trustee is protected.

Fiduciary Accountings

One of the trustee’s most important duties is transparency. Beneficiaries are entitled to know how assets are being managed, and in many cases state law requires formal fiduciary accountings. At Paley & Prehn, PLC, we prepare court-ready or informal accountings that distinguish between principal and income, track receipts and disbursements, and clearly show how distributions are made. [Learn more about our fiduciary accounting services »]

Foreign Reporting Obligations

Trusts with foreign accounts, beneficiaries living abroad, or cross-border assets often trigger additional U.S. reporting requirements. These may include FBARs (FinCEN Form 114), FATCA disclosures (Form 8938), and foreign asset reporting on fiduciary income tax returns. We help trustees identify which filings are required, prepare the necessary reports, and ensure compliance so that both the trust and its fiduciaries avoid unnecessary penalties.

Coordinating with Professionals

Trust administration often requires coordination beyond the trustee. We work closely with CPAs, financial advisors, realtors, appraisers, and – when needed – attorneys in other states or countries to ensure that assets are properly valued, taxes are reported, and distributions are handled correctly.

Trust Disputes and Litigation

The vast majority of trust administrations proceed smoothly, but sometimes conflicts arise. Beneficiaries may question the trustee’s decisions, ask for more detailed information, or dispute distributions. In other cases, long-standing family tensions surface during the administration of the trust. When disagreements cannot be resolved informally, they can turn into estate and trust litigation. [Learn more about our estate litigation services »]

Why Clients Choose Paley & Prehn

We recognize that most trustees are family members or friends, not professionals. That is why we take the time to explain your role and provide the ongoing support you need. Our services are comprehensive – covering everything required in trust administration from the first steps after a loved one’s passing until the final penny is distributed.

If you are stepping into the role of trustee, contact Paley & Prehn, PLC today. We will guide you through the process so you can fulfill your responsibilities with confidence and ensure the trust is carried out as intended.