5 Activities That Call for an Update to a Trust’s Inventory

After the creator of a trust passes away, it is time for the trust’s administration to begin. The successor trustee is charged with the responsibility of maintaining a current list of the assets held in the trust. This list is known as the trust’s inventory. It is important for successor trustees to know when an update to the trust inventory is needed.

Events That Require an Update to a Trust’s Inventory

Since it is the responsibility of the successor trustee to maintain the trust’s inventory list, it is crucial for the trustee to really understand what types of events can trigger the need for an update. The following is a list of some of the most common events:

  • Distributions of trust assets to beneficiaries
  • Gifts of trust assets
  • Sales of trust assets
  • Exchange of trust assets
  • Any other transfer of trust assets

If the trust involves sub-trusts and calls for either fractional or pecuniary division of the assets, there may be additional work to be done when it comes to the inventory of the trust. Sub-trusts may need to be maintained on their own separate supplemental schedule. In addition, the allocation of the assets, which is crucial for tax purposes, may need to be recalculated each time a distribution is made or income is allocated to principal.

The many responsibilities relating to a trust administration are often complex. This role can feel overwhelming and confusing for someone who has never served as a trustee in the past. Fortunately, we are here to help. We have helped many clients carry out proper trust administrations in the past. We encourage you to read their testimonials on our client testimonials page to learn more.

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Scott Grossman

Scott Grossman

Attorney

The Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307