Bankruptcy
Trustee, Trust Administration, and Beneficiaries' Rights

Once a trust is established, its operation must be overseen by a qualified administrator, also known as "trustee". The trustee manages the assets and distribution of assets according to the provisions set forth in the trust. The trustee should follow the detail of the provisions of the trust. One important consideration is tax saving in distribution of the income of the trust as compared to keeping the income as part of the trust assets. Recent federal tax rates indicated that the tax rate on income on trust is 43% at the top tier. A good trust attorney will provide advice on distribution of the trust and recommend options for the trustee to consider.

A trustee can be held personally liable for errors, omissions, and mistakes, including not complying with the terms of the provisions of the trust and not following the Kansas Trust laws. There are annual matters that the Trustee must attend to.

It is important that a trustee meets regularly with a professional who understand what is required under the provisions of the trust and Kansas Trust laws for the trustee to comply with.

Beneficiaries' Right Beneficiaries have certain rights under the provisions of the trust and Kansas Trust law, such as distribution of income and discretionary distribution of trust's assets. Beneficiaries may have the right along request reimbursement for the maintenance, support, and welfare provision that may be set forth in the provisions of the trust. There are other rights that the beneficiaries may not be aware of.

Contact Leonard Hall for a free consultation.



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