Estate & Trust Administration For Dummies, 2nd Edition

Chapter 1

Operating in a Fiduciary World

IN THIS CHAPTER

Becoming comfortable with the terminology surrounding estates and trusts

Encapsulating estates and taking care of trusts

Preparing and filing tax returns for trusts, estates, and decedents

You may have known for a while that someone close to you has named you as the executor of his or her will, as the trustee of a trust he or she’s created, or even as both. That knowledge may make you feel extremely honored while that person’s alive and kicking and still able to look after his or her assets.

Those warm and fuzzy feelings may come crashing to a halt, though, the day you hear that your friend has passed away, and you’re now in charge of the show. All eyes will be on you as you pick up the reins and try to keep this buggy called an estate or trust moving along at a steady clip, while keeping all the promises written down during your friend’s lifetime. The responsibility is huge, but so is your potential satisfaction, as you honor his wishes after he is no longer around to appreciate your actions.

This chapter is a jumping-off point for understanding what an estate administrator or trustee actually does: assumes control of someone ...