Trust Administration in Tennessee

Trust Administration Attorneys

Creating a trust offers an effective solution for protecting your wealth and safeguarding your legacy. Working with a trust administration attorney offers several advantages when considering the best options for transferring wealth to your family. Trusts enable your estate to avoid probate, allowing assets to be distributed to beneficiaries more quickly. Trusts also offer greater privacy, as they are not public documents like a will.

Forming a trust requires expert legal and financial knowledge. A trust administration attorney counsels clients on all Tennessee state laws and regulations, manages investments held in the trust, and distributes the assets to beneficiaries according to the trust’s instructions. Our estate attorneys at MHPS Law can provide the legal guidance required to ensure trust administration is effectively carried out to meet Tennessee state law.

Trust Administration Attorney walks client through documents

Understanding Trust Administration

A trust is a legal arrangement in which one party (the trustor) transfers discretion over assets to a second party (the trustee) for the benefit of a third party (the beneficiary). Trust administration refers to legal services that enable the management and distribution of the assets held in a trust.

When creating a trust, the trustor appoints their trustee, frequently a family member or close friend. However, with larger estates, it often makes sense to name a trust administration lawyer or financial institution, such as a bank or a trust company, as the trustee. The choice of trustee often depends on the size of the trust, the complexity of its assets, and the trustor’s preferences and priorities.

Trust attorney divides assets

Regardless of who’s chosen, the duties of the trust administrator largely remain the same. Common responsibilities of a trust administrator include:

Managing assets. The administrator manages and invests a trust’s assets to achieve the best return possible for the beneficiaries.
Distribution of assets. Once the trustor has passed away, the administrator is responsible for distributing the trust assets to the beneficiaries according to the trust’s terms.
Accurate record keeping. The trust administrator must keep accurate records of all trust-related transactions, including distributions, investments, and tax obligations.
Resolving disputes. Inheritance disputes among beneficiaries can cause a great deal of stress, especially when the trustee is a family member. A trust administration lawyer can help to resolve disputes fairly for all parties involved.

In Tennessee, forming a trust requires meeting the standards set by the Tennessee Uniform Trust Code (UTC).

The UTC is a set of regulations that controls the creation, modification, and termination of trusts in the state. The UTC sets standards for various aspects of trust administration, including the powers and duties of the trustee, the beneficiaries’ rights, and the requirements for modifying and creating trusts.

The Types of Trusts

Selecting the right trust depends on the size of an estate, its assets, and the priorities of the trustor. Our team at MHPS Law can help you select the type of trust that best meets your goals and financial strategy.

Revocable Trust. This type of trust can be changed or revoked by the trustor during their lifetime and is often used for estate planning purposes.
Irrevocable Trust. This trust cannot be changed or revoked in any way once created and is frequently used for tax planning and asset protection purposes.
Special Needs Trust. A type of trust created for the benefit of an individual with special needs to ensure they receive the support and care they require without disqualifying them from receiving government benefits.
Charitable Trust. A trust created to benefit a charitable organization.
Asset Protection Trust. A type of trust created to help shield assets from creditors or other legal claims.

Books on trust law in Tennessee

Benefits of Hiring an Estate and Trust Administration Attorney

Hiring a trust administration attorney offers services that friends and family often cannot provide. The passing of a loved one is an emotionally difficult period. Trying to perform the duties of a trust administrator while grieving can lead to costly mistakes. Hiring an attorney alleviates those demands and helps to ensure a trust is managed correctly and the beneficiaries are taken care of in a timely manner.

Other benefits of hiring an experienced estate and trust administration attorney include the following:

Professional legal guidance. Navigating the legal, logistical, and financial requirements of administering a trust is complicated, and mistakes are easy to make. The attorneys at MHPS Law can provide the expertise to manage trust assets and distribute them to beneficiaries successfully.

Reducing conflicts. Emotions can run hot after a loved one passes, leading to potentially avoidable conflicts and inheritance disputes. As an objective third party, a trust attorney can help negotiate disputes and settle conflicts without court intervention.
Ensuring legal compliance. Trust administration is regulated and scrutinized by state and federal laws. An attorney understands these laws and what’s required of a trustee to ensure the trust administrator avoids any potential legal issues or liabilities.
Protecting beneficiaries’ interests. The trustee is legally obligated to act in the beneficiaries’ best interest. An experienced attorney can help identify strategies that maintain the health of a trust and its assets while avoiding risk.

Client Hiring a Trust Administration Attorney

Rather than going it alone, hiring a trust administration lawyer will enable a trustee to navigate the legal complexities that can lead to compliance violations and issues that work to undermine a trust and its beneficiaries.

Our Estate and Trust Administration Attorneys Will Work to Protect Your Wealth

At MHPS, our experienced trust administration attorneys are dedicated to helping clients protect their wealth through effective estate planning strategies. We pride ourselves on providing clients with personalized, compassionate legal guidance and will work tirelessly to protect your assets and ensure your wishes are fulfilled.

Don’t take any risks when protecting your wealth or legacy.