Being named successor trustee doesn’t mean you should start dividing property right away. After a death, the trustee must first determine what the trust requires, which assets it controls, who must receive notice, and whether an estate must also go through probate.
A trust doesn’t eliminate every post-death task. A revocable living trust often becomes irrevocable at death, but assets outside it may still pass through a will and probate. An organized start helps trustees manage their legal duties and family expectations.
This article provides general Maryland legal information, not legal advice for a particular trust or estate. The trust document, asset ownership, beneficiary designations, debts, and related estate proceedings all affect a trustee’s next steps.
Start with the Trust Terms & Asset Protection
The first job is to protect trust property and read the governing documents before making major decisions. The governing instrument, meaning the written trust agreement, controls who receives property, when distributions occur, and what authority the trustee has.
A trustee has a fiduciary duty, which requires acting for the beneficiaries rather than for personal interests. The trustee must follow the written terms, manage property prudently, keep accurate records, avoid conflicts of interest, and treat beneficiaries fairly. Family pressure doesn’t override those obligations.
Early actions commonly include:
- Obtain the trust document, any amendments, and the decedent’s will.
- Order certified death certificates and make a preliminary list of accounts, real estate, business interests, and personal property.
- Secure real property, confirm insurance coverage, and preserve records for financial accounts and valuables.
- Identify beneficiaries, collect current contact information, and open a separate account for trust funds when appropriate.
These tasks apply whether the trust became irrevocable at death or was created as irrevocable during the settlor’s lifetime. The settlor is the person who created the trust. Keeping trust money separate from personal funds and documenting each action creates a reliable record for beneficiaries and future reporting.
Meet Maryland’s Beneficiary Notice Requirements
Maryland law creates two separate notice deadlines that new trustees shouldn’t confuse. A qualified beneficiary is generally someone with a current interest in the trust or who would receive a distribution if the trust ended at that time.
The 60-Day Acceptance Notice
Within 60 days after accepting the trusteeship, the trustee must notify qualified beneficiaries that the role has been accepted. The notice must provide the trustee’s name, address, and telephone number.
This deadline runs from acceptance of the trusteeship. Record the acceptance date, retain copies of the notices, and keep proof of delivery or mailing in the trust file.
The 90-Day Post-Death Irrevocability Notice
Within 90 days after learning that a formerly revocable trust became irrevocable because of the settlor’s death, the trustee must notify qualified beneficiaries of the trust’s existence and the settlor’s identity. The notice must also explain their right to request a copy of the trust instrument and a trustee’s report.
This obligation has a different trigger from the 60-day acceptance notice. Maryland law also generally requires a trustee to respond promptly, unless doing so would be unreasonable under the circumstances, to a qualified beneficiary’s request for information about the administration, including a copy of the trust instrument.
Coordinate Trust Administration with Probate & Creditor Claims
Trustee duties after a death in Maryland often overlap with, but don’t replace, probate administration. A trust that was revocable during the settlor’s lifetime usually operates without court supervision, while individually owned assets may require proceedings through the Register of Wills and Orphans’ Court.
Some property may be titled in the trust and pass under its instructions, while other property remains in the decedent’s name and passes under a will or Maryland intestacy law. In that situation, the successor trustee and personal representative need to coordinate information and expenses. For Anne Arundel County matters, the process can involve filings with the Anne Arundel County Register of Wills.
Creditors are another reason not to distribute property too quickly. Claims against a Maryland probate estate are generally barred unless presented by the earlier of six months after the date of death or two months after the personal representative mails written notice to a known creditor. The trustee must identify known debts, final expenses, taxes, and other obligations before treating all assets as available for distribution.
For a revocable trust, the trustee may also publish notice to creditors, giving them six months from publication to submit a claim against the trust. Whether publication is appropriate depends on the assets, known obligations, and relationship to any related estate proceedings.
Account for Property Before Making Distributions
Before making final distributions, the trustee needs to be able to explain what the trust owns, what it owes, and what the governing documents direct. That accounting provides the basis for careful administration.
Useful records include:
- Account statements as of the date of death.
- Appraisals or other values for real estate and significant property.
- Records of income received, bills paid, and tax activity.
- A log of all distributions.
- For a home, records of insurance, maintenance, utilities, rental income, and sale expenses.
On request by a qualified beneficiary, a Maryland trustee must provide an annual report and a report when the trust terminates. The report includes trust property, liabilities, receipts, disbursements, trustee compensation, and asset values when feasible.
Distribution timing depends on the written instructions and the work still required. An interim distribution may be possible when the governing documents permit it and adequate funds remain for expenses, taxes, and unresolved obligations. Final distribution should wait until the trustee has a sound basis to conclude that all duties have been met.
When to Seek Legal Guidance
Legal guidance is particularly useful when the language is unclear or family members disagree. It also matters when a beneficiary requests information or an accounting, or when real estate must be transferred or sold. Counsel can address assets outside the trust, overlapping expenses or creditor issues, and situations in which different people serve as trustee and personal representative.
For an initial review, gather:
- The trust agreement and amendments.
- The will.
- The death certificate.
- A preliminary asset list.
- Information about known debts.
- Beneficiary contact information.
These materials help identify applicable deadlines, determine whether probate administration is needed, and clarify what must be preserved before distributions begin.
At Hartman - Attorneys at Law, we review trust and estate planning documents, identify immediate priorities, and assist with trust administration in person in Annapolis or virtually. Contact us at (443) 335-9661 to discuss the next steps.