Many people take the important first step of creating a revocable living trust, but fail to follow through with the crucial step of administering the trust when it terminates. Administering a Trust properly is essential to gaining any tax benefits and avoiding running afoul of the law.
Although Trusts are not subject to Court supervision, the law still governs the process of wrapping up a revocable trust. Settling a revocable Trust is, in some ways, similar to the probate process.
The successor Trustee must sign initial documents that give notice that the Trust is being closed out and settled. In connection with the closing of the Trust, Iowa law requires that notice be published in a local newspaper. The notice must be published for two consecutive weeks. After that, the Trust must remain open for four months before it can be closed.
The successor Trustee must also pay bills and taxes, as well as identify the beneficiaries. Final distributions are made at the end of the creditors’ claim period.
Finalizing a Trust requires legal steps. The experienced attorneys at Abendroth Russell Barnett Law Firm can assist you in settling a revocable trust.