The efficient administration of a living trust after death is the timely and cost-effective process of liquidating and/or distributing assets to the beneficiaries or heirs of a decedent.  The process includes:

Providing notice to trust beneficiaries and heirs at law of the death;

• Obtaining an EIN from the IRS and filing tax returns;
• Marshalling the title of assets to the new trustee of the trust;
• Obtaining appraisals for all property as of the date of death, including and not limited to publicly traded stocks and bonds, closely held business interests, real estate holdings, jewelry, art, collectibles, etc.
• Filing an estate tax return if necessary;
• Lodging the decedent’s Will with the Superior Court in the appropriate county;
• Opening a bank account for the trust;
• Paying debts of the decedent;
• Paying the costs of administration;
• Collecting life insurance policy proceeds;
• Notifying taxing authorities, the Department of Health Services, Social Security Administration of the death;
• The marshalling of Individual Retirement Accounts, 401Ks, pension and profit- sharing plans, annuities, and other retirement assets;
  Investing assets of the trust in a safe and prudent manner during trust administration;
• Distributing trust assets to the beneficiaries.

The above list is not exhaustive.  Toxic issues can arise with real estate requiring extensive investigation and remediation.  Fractional or minority interests in real estate or business interests can require extensive discount appraisals.  Oil and gas interests can be spread amongst many states requiring the need for attorneys in each state to assist with the marshaling of those interests.  Various examples of complexities can go on and on.  With our accounting, tax and legal background, we handle the trust administration process efficiently and cost effectively.

The core documents of a basic estate plan include a Last Will and Testament, revocable trust, Advanced Health Care Directive, and a power of attorney.  Documents that transfer assets to the trustee of the trust, such as assignments and deeds, are also prepared.  Beneficiary designations for life insurance, annuities, Individual Retirement Accounts, 401Ks and other retirement plans are also important considerations in the estate plan.

With the increase in the federal estate tax exemption to $13,610,000 per person ($27,220,000 for a married couple) for 2024, the need for complex estate plans has significantly decreased in recent years.  However, the law as currently written provides that the federal estate tax exemption will decrease in the year 2026 back to the $5,000,000 amount, as adjusted.  If your estate is between those two amounts the planning gets a bit dicey.

Brett Bjornson, with his background as a CPA and an attorney, provides a comprehensive and sophisticated estate planning service that emphasizes personalized attention.  From the drafting of the simple estate plan to formulating complex, customized estate plans, Brett’s unparalleled technical expertise in all aspects of estate planning and tax matters makes for a one stop shop for your estate planning needs.  Brett works with his clients to continually protect and preserve their hard-earned assets over time, as economic and personal circumstances shift. He is exceptionally experienced in dealing with high net-worth individuals and the implementation of more complex planning vehicles such as GRATs, QPRTs, CLATs, IDGTs and family entities.

Trust and estate tax matters center around income tax, gift tax, estate tax and property tax.  Planning for the different taxes can be a double-edged sword. You may decrease estate taxes but increase property taxes. Similarly, you may save on income taxes but increase estate taxes. Then again there are times that you save on estate taxes and increase income tax exposure.

The varying consequences require an understanding of the various tax structures combined with legal application of entity structure, valuation issues and asset transfer techniques. Brett Bjornson, with a CPA background, a Masters in federal income taxation and as an attorney is well suited to assist you with the countervailing forces that need to be considered when minimizing your tax exposure.