Morrison Law Group, PLC

Estate Planning | Business Planning

Attend a Free Workshop SCHEDULE A CONSULTATION

Offices in Metairie & Covington (504) 831-2348

  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • Estate Planning Pre-Consultation Form
    • Reviews
      • Our Reviews
      • Review Us
    • Request a Guest Speaker
    • Succession Pre-Consultation Form
  • Estate Planning
    • Asset Protection
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Incapacity Planning
    • Legacy Planning
    • Pet Planning
    • Probate and Successions
    • SECURE Act
    • Special Needs Planning
  • Medicaid Planning
    • Louisiana Medicaid & Long-Term Care Planning
    • Free Medicaid/Long-Term Care Calculator
  • Business Planning
    • Business Planning
    • Business Succession Planning
    • Family-Owned Businesses
    • Small Business Medicaid Planning
  • Resources
    • Estate Planning Resources
      • Estate Planning Definitions
      • Estate and Gift Tax Figures
      • Estate Planning Reports
      • Estate Planning Checkup
      • Is Your Estate Plan Outdated?
      • Incapacity Planning Definitions
    • Elder Law Resources
      • Are You A Caregiver?
      • Coping With Alzheimer’s
      • Guardianship & Conservatorship
      • Hospice Care
      • Elder Law Reports
      • Elder Law & Medicaid Definitions
    • Newsletters
    • Trust Administration & Louisiana Succession Resources
      • Bereavement Resources
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
    • Families of Children with Special Needs
    • Frequently Asked Questions
      • Estate Planning FAQ’s
      • Trust Administration & Probate Frequently Asked Questions
      • Legacy Wealth Planning FAQ’s
      • Frequently Asked Questions for Families Without an Estate Plan
  • Blog
  • Contact Us

Trustee: An Honor and a Responsibility

July 15, 2022 by Ronald "Chip" Morrison

You are named as Successor Trustee in your parent’s, sibling’s, or other loved one’s Trust. This is an honor and a responsibility. Of course, it is an honor because they have chosen you to carry out the wishes closest to their heart. It is a responsibility because the actions you make can have serious legal and tax consequences.

As Successor Trustee, when the initial Trustee (usually the “grantor” or owner of the Trust) dies, you become Trustee. As Trustee, it is your responsibility to administer the Trust. In other words, you must gather all the assets, manage them, and distribute them according to its terms. In doing so, you have many decisions to make. When will you make distributions to subtrusts or beneficiaries?  Are any estate taxes owed?  Are any income taxes owed by the Trust grantor or the Trust itself?  If the Trust directs you to create subtrusts, which assets should you put in which subtrust?  What valuation date do you use, the date the grantor died or the date you are funding the subtrust?  These choices could have income and estate tax consequences for the beneficiaries of the Trust for years to come.

Answers to some of these questions may seem deceptively simple. For example, how should you invest the assets?  Depending on the terms of the trust and state law, you may have different duties. Let’s say you simply leave the assets the way they were invested before the initial Trustee died. This may not be prudent, especially in a down market, and you may be held responsible for losses the Trust and its beneficiaries suffer as a result.

The answer to each of these questions varies depending upon the unique circumstances of your case and state and federal law. While it is typically easier and less expensive to administer a Trust than to administer a probate estate under a Will, you need professional advice to complete the Trust administration process. Consulting a qualified estate planning attorney helps prevent errors in Trust administration–errors which would have cost the Trust and its beneficiaries in increased taxes and forgone opportunities.

Take a couple weeks to grieve. But, then act quickly. There are deadlines for tax and other filings and the clock is ticking.

Mr. Morrison is a board-certified estate planning attorney with experience in both simple and complex estate matters. He can prepare an estate plan for you that achieves your goals of passing your assets to whom you wish. We offer comprehensive and personalized estate planning consultations. For more information or to attend an upcoming seminar, please contact us at (504) 831-2348 or visit us online at www.morrisonlawplc.com.

  • Author
  • Recent Posts
Ronald
Ronald "Chip" Morrison
Ronald “Chip” Morrison, Jr. is a Board Certified Estate Planning Law Specialist as certified by the Louisiana Board of Legal Specialization. He is admitted to practice before all State courts in Louisiana. He is also admitted to practice before the United States District Court for the Eastern and Middle District of Louisiana.
Ronald
Latest posts by Ronald "Chip" Morrison (see all)
  • How to Leave an Inheritance for Your Special Needs Child - March 27, 2023
  • Should I Leave Everything to My Spouse? - March 24, 2023
  • Why Women Hold the Keys to Successful Estate Planning - March 21, 2023

About Ronald "Chip" Morrison

Ronald “Chip” Morrison, Jr. is a Board Certified Estate Planning Law Specialist as certified by the Louisiana Board of Legal Specialization. He is admitted to practice before all State courts in Louisiana. He is also admitted to practice before the United States District Court for the Eastern and Middle District of Louisiana.

Morrison Law Group, PLC

Subscribe Our Blog

Download Estate Planning Worksheet PDF Now!

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Map

Morrison Law Group PLC (Metairie Office)MAP Gabb Morrison LLP (Covington Office)MAP
  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • RSS
MORRISON LAW GROUP
law-pay

© 2023 American Academy of Estate Planning Attorneys, Inc. | Disclaimer | Privacy Policy