Your father’s attorney calls to say his living trust names you as successor trustee. You’re still planning the funeral, and now you’re responsible for his house, his accounts and your siblings’ inheritance. Where do you start?
A successor trustee takes over a trust when the settlor, the person who created it, dies or can no longer serve. Ohio law gives you real authority in this role, along with specific duties and deadlines. Here’s what to handle first.
Decide whether to accept the role
Being named doesn’t obligate you to serve. You generally accept by following the method the trust describes or simply by acting as trustee. If you don’t accept within a reasonable time after learning of your appointment, Ohio law treats that as a rejection. You can still take limited steps to protect trust property before deciding, as long as you send a written rejection within a reasonable time if you decline.
Secure the trust’s property
Once you accept, your first job is protecting what the trust owns. Find the signed trust document and every amendment, then make a list of property that legally belongs to the trust. Change the locks on an empty home and confirm insurance stays active. Some assets may pass another way because of a beneficiary designation or because the deceased person owned them individually.. Understanding the Ohio trust administration process helps you sort out what you actually control.
Notify beneficiaries within 60 days
Ohio requires trustees to keep current beneficiaries informed about the trust’s administration. Within 60 days of accepting, you must notify the current beneficiaries of your name, address and phone number. Within 60 days of learning the trust has become irrevocable, you must also tell them the trust exists, who created it and that they can request a copy and an annual report. If the settlor is still living and the trust remains revocable, these duties generally run to the settlor instead. Beneficiaries can also waive reports.
Get a trust tax ID and separate account
When the settlor dies, a revocable trust usually becomes irrevocable and a separate taxpayer. Federal rules generally call for a new tax identification number at that point. The trust may need its own employer identification number, commonly called an EIN, rather than continuing to report under the deceased settlor’s personal taxpayer number. Ohio law also requires you to keep trust property separate from your own and maintain adequate records. Opening an account used only for trust money makes that separation easier to document.
Hold off on distributing trust assets
Family members may push you to hand out money or belongings quickly. Distributing too early can leave you personally responsible if bills or taxes surface later. Before paying beneficiaries, account for final bills, administration expenses and taxes. Creditors of the person who died can sometimes reach trust assets, so holding some funds back protects everyone.
Build your first 60 days around one deadline
Serving as successor trustee is an honor, but it’s also a legal job with real deadlines. Today, write down the date you accepted, count forward 60 days and build your first tasks around that deadline. If the trust holds real estate, a family business or beneficiaries who don’t get along, talking early with an attorney who handles Ohio trust administration can help you avoid mistakes that are hard to undo.
