| Alan R. Horvath, Attorney at Law |
| Trust Administration |
The trustee of any irrevocable trust owes a fiduciary duty to all potential beneficiaries to administer the trust for their
benefit and according to the guidelines specified in the trust. The beneficiaries are entitled to annual accountings of
the financial performance of the trust and the distributions made by the trustee. The beneficiaries have the right to
challenge the trustee's actions in court if those actions do not conform to the instructions given in the trust.
An A/B trust creates additional administrative responsibilities at the death of the first spouse. Specifically, if all or part
of the decedent's share is to be set aside in trust, then this sub trust is at that point irrevocable. It will be necessary to
get a tax id for that part of the trust, and to keep records to clearly show what funds are in what portion of the trust. It
is also advisable to retitle assets to clearly show ownership in part or in full by the irrevocable trust. By so doing, the
trustee can shield the irrevocable portion of the trust from creditors of the surviving spouse.
benefit and according to the guidelines specified in the trust. The beneficiaries are entitled to annual accountings of
the financial performance of the trust and the distributions made by the trustee. The beneficiaries have the right to
challenge the trustee's actions in court if those actions do not conform to the instructions given in the trust.
An A/B trust creates additional administrative responsibilities at the death of the first spouse. Specifically, if all or part
of the decedent's share is to be set aside in trust, then this sub trust is at that point irrevocable. It will be necessary to
get a tax id for that part of the trust, and to keep records to clearly show what funds are in what portion of the trust. It
is also advisable to retitle assets to clearly show ownership in part or in full by the irrevocable trust. By so doing, the
trustee can shield the irrevocable portion of the trust from creditors of the surviving spouse.
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P.O. Box 81
37 Main St., Suite 202
San Andreas, CA 95249
37 Main St., Suite 202
San Andreas, CA 95249
| Phone: 209 754-5291 Fax: 209 754-5293 |
| ahorvathlaw@sbcglobal.net |
| Estate Planning By Phone for Any California Resident |