Key Steps in Probate and Trust Administration
Once someone passes away, their estate doesn’t simply transfer to the next person in line. The process varies depending on whether a will or trust is in place. Probate is required for estates governed by a will, while trust administration governs those managed by a trust.
At Van Matre Law Firm, P.C., we help families through all phases of probate and trust administration in Columbia, Missouri. Losing a loved one is already challenging—handling legal and financial matters at the same time can make things even harder.
Trust administration plays a vital role in settling an estate efficiently and lawfully, and understanding what’s required from the beginning makes a meaningful difference. Let’s walk through both, starting with probate and then showing how trust administration fits into the overall process.
Starting the Probate Process
When someone dies with a will, that will typically need to go through probate court. Probate is the legal process of confirming the will, identifying heirs, settling debts, and distributing remaining assets. To start probate, we’ll need to:
Obtain the death certificate: This document is necessary to trigger any formal legal process related to the estate.
Locate the original will: A copy might not be enough. Courts typically want the original document to validate it.
File a petition with the probate court: This gets the process officially started and requests the appointment of a personal representative (sometimes called an executor).
Notify heirs and beneficiaries: Everyone named in the will—or who would inherit under state law—must be legally informed.
Once the court opens the probate case, it’ll issue what are known as “letters testamentary,” which give the personal representative the authority to handle the estate’s business.
Managing the Estate During Probate
During probate, the personal representative has a legal duty to protect the estate and act in the best interests of its heirs and beneficiaries. That means keeping records, being transparent, and making sure all necessary steps are handled. Key responsibilities at this stage include:
Identifying and valuing assets: This can include bank accounts, personal property, vehicles, real estate, retirement accounts, and more.
Paying debts and taxes: Valid debts must be paid, and any estate taxes or income taxes need to be filed and resolved.
Keeping beneficiaries informed: Good communication reduces confusion and helps prevent disputes later.
Maintaining property: If there’s a home or land, it may need to be secured, maintained, or insured while the estate is open.
As we work through probate, one goal is to make sure everything is accounted for before distributing what’s left. Once debts and taxes are cleared, we can begin to close out the estate.
Distributing the Estate and Closing Probate
After all obligations are handled, the personal representative can distribute assets according to the will. This stage often brings emotional closure for the family and a sense of resolution to the process. Final steps in probate typically involve:
Preparing an accounting: Courts often require a detailed report of all money in and out of the estate.
Obtaining court approval (if needed): Some states or counties require a judge to approve final distributions.
Distributing remaining assets: This can include transferring titles, writing checks, and distributing property.
Closing the estate with the court: A final filing lets the court know the estate is fully settled.
Once probate is closed, the legal responsibility of the personal representative ends. But not all estates go through probate. That’s where trust administration becomes important.
Trusts in Estate Administration
A revocable living trust allows someone to transfer assets outside of probate. Instead of going through court, the person named as successor trustee carries out the terms of the trust. Trust administration is generally more private and faster than probate, but it still requires careful steps to do things properly.
We often encourage clients to consider trusts because they help their families avoid probate entirely. When a trust is used correctly, we shift from court-supervised probate to private trust administration. Let’s take a look at what trust administration actually involves.
Key Steps in Trust Administration
Even though trusts don’t go through probate, trust administration isn’t automatic. The trustee must still manage the trust responsibly and follow Missouri law. Steps we follow in trust administration include:
Reviewing the trust document: The trustee must understand the trust’s terms and how assets are to be handled and distributed.
Obtaining the death certificate: Just like in probate, this is necessary for financial and legal institutions.
Identifying trust assets: Only assets titled in the name of the trust fall under trust administration. We verify what’s included and what might still need to be transferred.
Obtaining a tax identification number: Once the trust becomes irrevocable, it needs a separate tax ID for filing.
Notifying beneficiaries: Missouri law may require written notice to certain beneficiaries, giving them a copy of the trust or a summary.
Paying valid debts and taxes: Even with a trust, debts may still need to be paid before distributions can occur.
Trustees have a legal duty to act in good faith and in the best interests of the beneficiaries. That’s why trust administration must be handled carefully and consistently.
Responsibilities of the Trustee
Acting as a trustee isn’t a ceremonial role—it comes with real legal duties. Trustees must act with loyalty, prudence, and impartiality. If they don’t, they can be held personally liable. A trustee’s responsibilities include:
Keeping accurate records: This includes receipts, expenses, distributions, and tax filings.
Maintaining communication: Trustees need to provide updates and respond to reasonable requests for information.
Acting impartially: All beneficiaries must be treated fairly based on the trust’s terms.
Managing investments: Trustees may need to invest trust assets prudently until they’re distributed.
If questions or disputes arise during trust administration, it’s often helpful to involve a lawyer to clarify what’s allowed under the trust and Missouri law.
Distributing Assets Through a Trust
One of the advantages of trust administration is that distributions can often happen more quickly than in probate. That said, a trustee still needs to verify that all debts and expenses are settled before distributing the remainder. Typical trust distributions include:
Lump sum payouts: Some trusts call for all remaining assets to be distributed at once.
Staggered distributions: Others spread out payments over time—for example, giving a third at age 25, a third at 30, and the rest at 35.
Ongoing support for beneficiaries: In some cases, trusts provide for education, health care, or living expenses over time.
Once distributions are complete, the trustee prepares a final accounting and may terminate the trust, depending on its terms.
Common Challenges in Probate and Trust Administration
While many estates are settled without major problems, issues can still arise. When they do, working with a knowledgeable lawyer helps keep the process on track. Some challenges we often encounter include:
Missing or outdated documents: A missing will or an unsigned trust can create delays or legal disputes.
Unclear asset ownership: When titles or accounts aren’t properly transferred into a trust, they may need to go through probate anyway.
Family disputes: Emotions run high during loss. When beneficiaries disagree with distributions or trustee actions, it can lead to legal challenges.
Creditor claims: Some creditors try to collect against an estate or trust even if the debt isn't valid.
When issues like these come up, we work through them carefully so they don’t derail the estate process.
Choosing Between Probate and Trust Administration
The best path depends on how the estate was set up during the decedent’s lifetime. We often recommend using a trust when possible because it allows families to avoid probate court. But even when a trust is in place, proper trust administration still matters.
If someone passes away without a will or trust, probate is almost always necessary. On the other hand, if all major assets were titled in a living trust, we may be able to work through everything privately. Regardless of the setup, it’s important to understand both systems and follow the correct steps from beginning to end.
Contact an Estate Lawyer Today
Probate and trust administration can feel overwhelming, but working with a lawyer who understands the process can make a big difference. At Van Matre Law Firm, P.C., we help families throughout Columbia, Missouri, and Jefferson City, Missouri, manage every stage of estate administration with care and precision. Whether you need help with probate court or trust administration, we’re ready to support you. Contact us today.
