I have a class that i need an answer to regarding probate law: documents to transfer a clients trust estate...

Question

i need to Prepare the documents necessary to transfer a Client’s trust estate to the appropriate beneficiaries on termination of the trust. how would i do this and what would i need??? thanks a bunch

Answer 1

When a trust estate is terminated, there is generally an accounting prepared in accordance with Uniform Fiduciary Accounting standards. Here is a link to a report by the American College of Trust and Estate Counsel on Fiduciary Accounting Standards: http://www.actec.org/public/ShowProjectsPublic.asp?Id=15

Here is a link to an article on the Evans-legal.com website discussing fiduciary accounting: http://evans-legal.com/dan/fidaccex.html

Most trusts are terminated by the beneficiary or remainder beneficiary signing a Receipt, Release, and Indemnity Agreement basically summarizing the terms of the trust, that the trust purpose has been fulfilled, and that, in order to advance distribution and save legal expenses and costs, that the beneficiary waives the filing of a formal accounting with the court for audit and confirmation, reciting the receipt of the amount of money wihch the beneficiary is entitled to receive.

Often a trustee will prefer to file a formal accounting with notice to all parties in interest, for confirmation by the court. The basic reason for the trustee's desire to have an adjudication is that the court accepts the accounting and proposed schedule of distribution, and basically releases the trustee from any further liability. Of course, in order to get the accounting before the court, a petition accompanies the accounting. Generally, a statutory period of time is allowed for people to object to the accounting. If no objections are received, the Court may decree distribution. In some jursidictions, it is presumed that the accounting is approved after a certain period of time, and in other jurisdictions, the court may sign a Decree Nisi, which becomes absolute after the expiration of a certain period of time as specified in local rules of court.

In Pennsylvania, the form of accounting was adopted by the Pennsylvania Supreme Court, Pa O. C. Rule 6.1, see also 20 C. P. S §7181.