TRUST MANAGEMENT AND ADMINISTRATION IN LEAWOOD, KANSAS
Expert guidance for trustees navigating the complexities of trust administration and ongoing management.Creating a trust is just the first step. For your plan to actually work, you’ve got to handle the ongoing administration correctly to make sure the trust stays legal and does exactly what you intended it to do.
At The Eastman Law Firm, we’re here to offer complete trust management support for trustees, beneficiaries, and those who created the trust. Whether you’ve been named as a trustee for a family trust or you’re managing more complex assets, we’ll give you the practical legal guidance you need to handle your responsibilities with confidence. We’re proud to help neighbors throughout Johnson and Wyandotte Counties navigate these rules without the stress.
Over the last 27 years, Gary Eastman has created 5,423 trusts for Kansas families. He doesn’t just draft the papers; he provides the “how-to” guidance for trustees managing everything from simple family plans to complex special needs and charitable trusts. If you’re in Wyandotte County or Johnson County, you don’t have to figure out these complicated laws on your own.
Since Gary has both legal expertise (J.D.) and financial training (an M.B.A. in Finance), he understands the technical, tax, and investment sides of trust management that a lot of other attorneys might miss. He’s here to make sure your trust is managed right, protecting your legacy and your family’s future.
Understanding Trust Administration and Management
Trust management (or trust administration) is simply the day-to-day work of running a trust according to its rules and the law. Whether you’re the Trustee of a Living Trust, an Irrevocable Trust, or a Special Needs Trust, the main jobs are usually the same. You’ll need to manage assets carefully, give out money to beneficiaries as the document says, keep good records, and handle tax returns. It’s all about following your “fiduciary duties”—which is just a legal way of saying you’ve got to put the trust’s interests first under Kansas law.
Trust administration usually starts when a trust becomes “irrevocable,” which often happens after the person who created it (the Settlor or Grantor) passes away. At that moment, the Trustee takes on the legal responsibility of managing everything for the people named to inherit it. This is a big deal because if things aren’t handled right, the person in charge could actually be held personally liable for mistakes. Courts in Johnson and Wyandotte Counties take these duties very seriously.
We’re here to give you the guidance you need to navigate these complex rules without the headache. Whether you’re dealing with a trust from a will or a specialized Charitable Trust, we’ll help you understand the legal language, make sure the right people get their distributions, and handle the accounting and taxes. We’ve helped thousands of families across the Kansas City area manage these details correctly so they can avoid disputes and stay out of court.
Our goal is to make sure you’re doing your job as Trustee perfectly. We’ll help you protect yourself from liability while making sure the beneficiaries get exactly what they’re supposed to. Since Gary has 27 years of experience and a J.D./M.B.A., he’s got the right mix of legal and financial know-how to make sure nothing’s missed.
| Timeframe | Phase | Key Tasks & Responsibilities |
|---|---|---|
| Immediate (Week 1-2) |
Initial Steps | Urgent actions: Secure all trust assets and property. Review complete trust document including amendments. Obtain federal tax ID number (EIN) for trust. Notify all qualified beneficiaries of trust and your role as trustee. Open trust bank accounts. Change locks on real estate if needed. Notify financial institutions of settlor’s death. |
| Month 1-3 | Asset Inventory & Valuation | Complete inventory of all trust assets including real estate, bank accounts, investments, business interests, and personal property. Obtain professional appraisals for real estate and valuable items. Retitle all assets into trust name if not already done. Notify all financial institutions and obtain date-of-death valuations. Review insurance coverage. |
| Month 3-6 | Initial Administration | Establish record-keeping system for all trust transactions. Set up investment policy and coordinate with financial advisors. Begin required distributions to beneficiaries if any. Prepare and provide first accounting to beneficiaries. File Form 706 estate tax return if required (within 9 months of death). Pay any debts or claims against trust. |
| Ongoing (Annual) |
Regular Trust Duties | Recurring annual responsibilities: Prepare and distribute annual accountings to beneficiaries. File Form 1041 trust income tax return (due April 15). Provide K-1s to beneficiaries. Make distributions according to trust terms. Monitor and rebalance investments. Maintain detailed transaction records. Communicate regularly with beneficiaries. |
| As Needed | Special Situations | Respond to beneficiary inquiries and requests for information. Handle real estate sales or business decisions. Address trust modifications or amendments if needed. Resolve beneficiary disputes. Seek court instruction for unclear provisions. Coordinate professional services (attorneys, CPAs, appraisers). Deal with unexpected issues or changed circumstances. |
| Final Phase | Trust Termination | When trust purposes are fulfilled: Prepare final accounting showing all transactions and current assets. Obtain beneficiary approval of final accounting or court approval. File final trust tax returns. Make final distributions to beneficiaries per trust terms. Obtain signed receipts from beneficiaries. Close all trust accounts. Request formal discharge as trustee. Retain records per statute of limitations. |
Trustees have fiduciary duties, the highest standard of care recognized by law. You must act in the best interests of beneficiaries, manage assets prudently, avoid conflicts of interest, keep accurate records, provide accountings, and follow the trust document and state law precisely.
Failure to meet these duties can result in personal liability, removal as trustee, and surcharge for losses caused by mismanagement.
Trust management is complex because it sits at the intersection of estate law, tax law, investment management, accounting, and family dynamics. Even well-meaning trustees can make costly mistakes without proper guidance. Professional trust management support helps you navigate this complexity, avoid common pitfalls, and fulfill your duties while minimizing personal liability and family conflicts.
Having created 5,423 trusts over 27 years, we understand trust administration from both perspectives: designing trusts that work smoothly and guiding trustees through the administration process. This comprehensive experience means we anticipate issues before they arise and provide practical solutions that protect both trustees and beneficiaries.
Is Trust Management Right for Your Situation?
We guide trustees managing trusts of all sizes and complexities, from simple revocable living trusts distributing to adult children to complex special needs trusts requiring decades of administration. Whether you’re a family member serving as trustee for the first time or a professional fiduciary managing multiple trusts, we provide the technical expertise and practical support you need.
Trust management services are essential if you fall into any of these categories:
You’ve been named as trustee.
Being appointed trustee is both an honor and a burden. You’re legally responsible for managing potentially substantial assets, making distribution decisions that affect family members, filing tax returns, and following complex trust provisions. Many trustees feel overwhelmed by the responsibility and legal requirements. Professional guidance ensures you fulfill your duties properly while avoiding personal liability.
You’re a successor trustee after a death.
When the settlor of a trust dies, the successor trustee must spring into action with numerous immediate responsibilities including securing assets, notifying beneficiaries, obtaining tax ID numbers, filing tax returns, distributing assets, and closing accounts. This happens during an emotionally difficult time. Professional support guides you through the process step by step.
You’re managing a complex or high-value trust.
Trusts with substantial assets, business interests, real estate in multiple states, or complex distribution provisions require sophisticated management. The larger and more complex the trust, the greater your fiduciary exposure and the more important professional guidance becomes.
You’re a professional trustee or corporate fiduciary.
Banks, trust companies, and professional trustees need legal counsel for trust administration, beneficiary disputes, court accountings, and fiduciary litigation. We work with professional fiduciaries to ensure compliance and defend against beneficiary claims.
Beneficiaries are questioning your decisions.
Beneficiaries sometimes disagree with trustee decisions about distributions, investments, or interpretations of trust provisions. Professional guidance helps you document your decision-making, respond appropriately to beneficiary inquiries, and defend your actions if challenged.
The trust document is unclear or outdated.
Many trusts were drafted years ago with language that’s ambiguous, contradictory, or doesn’t address current circumstances. Trustees facing unclear provisions need legal guidance to interpret the trust properly, obtain court instruction if necessary, or potentially modify the trust.
You need to modify or terminate a trust.
Circumstances change, and sometimes trusts need to be modified or terminated. Kansas law provides several mechanisms for trust modification, but they require following specific legal procedures. Professional guidance ensures modifications are done properly and won’t create unintended tax or legal consequences.
You’re managing a special needs trust.
Special needs trusts have strict requirements to preserve government benefit eligibility. Making the wrong distribution or violating trust terms can disqualify the beneficiary from SSI or Medicaid. These trusts require specialized knowledge of both trust law and public benefits law.
How Trust Management Services Protect Trustees and Beneficiaries
| Duty Category | Specific Responsibilities | Frequency | Consequences if Neglected |
|---|---|---|---|
| Duty of Loyalty | Act solely in beneficiaries’ best interests. Avoid all conflicts of interest. No self-dealing, borrowing trust funds, or using trust assets for personal benefit. Cannot profit from trust position beyond reasonable compensation. | Every decision, ongoing | Personal liability for losses, removal as trustee, surcharge to restore lost value, possible criminal charges for intentional self-dealing |
| Duty of Prudence | Invest and manage trust assets as a prudent investor would. Diversify appropriately. Balance risk and return. Consider trust purposes and beneficiary needs. Cannot make speculative investments or keep assets unproductive. | Ongoing, continuous monitoring | Personal liability for investment losses, breach of fiduciary duty claims, surcharge for lost earnings, removal as trustee |
| Duty to Inform & Account | Keep qualified beneficiaries reasonably informed. Provide annual accountings showing receipts, disbursements, assets, and liabilities. Respond promptly to reasonable beneficiary inquiries. Provide trust information upon request. | Annually, plus as requested | Beneficiary lawsuits for accounting, court-ordered accountings, loss of beneficiary trust, potential removal, legal fees |
| Duty of Impartiality | Treat all beneficiaries fairly according to trust terms. Balance needs of current income beneficiaries with remainder beneficiaries. Cannot favor one beneficiary over another unless trust authorizes. Invest appropriately for all beneficiaries. | Every distribution decision | Beneficiary disputes and litigation, claims of favoritism, potential surcharge to disadvantaged beneficiaries, removal |
| Duty to Follow Trust Terms | Administer trust exactly according to trust document provisions. Follow all distribution standards, investment directions, and administrative requirements. Cannot deviate from trust terms even with good intentions unless legally modified. | Every administrative action | Breach of fiduciary duty, unauthorized distributions must be returned, personal liability, removal, beneficiary lawsuits |
| Tax Compliance | File annual trust income tax returns (Form 1041). Provide K-1s to beneficiaries. Pay all trust taxes timely. File estate tax returns if required. Maintain tax identification number. Report trust income accurately. | Annual (April 15 deadline) | Personal liability for penalties and interest, IRS audits, beneficiary claims for tax problems, professional malpractice exposure |
| Detailed Record Keeping | Maintain complete accurate records of all trust transactions. Document all receipts, disbursements, distributions, and investment decisions. Keep beneficiary communications. Preserve documents for statute of limitations periods. | Ongoing, every transaction | Cannot defend decisions if challenged, accounting difficulties, audit problems, appearance of mismanagement, litigation disadvantage |
| Asset Segregation | Keep trust assets completely separate from personal assets. Maintain separate trust bank accounts. Title all trust property in trust name. Never commingle trust and personal funds. Pay trust expenses only from trust funds. | Ongoing, every transaction | Commingling liability, accounting impossibility, appearance of self-dealing, personal liability for losses, removal as trustee |
Ensure Compliance with Fiduciary Duties
Trustees are held to the highest legal standard of care. Professional guidance ensures you understand and meet your duties including the duty of loyalty, duty of prudence, duty of impartiality, duty to inform and account, and duty to follow the trust terms. We help you document your decision-making and create a record that demonstrates you’re acting properly even if decisions are later questioned.
Avoid Personal Liability and Surcharge
Trustees can be held personally liable for losses caused by mismanagement, self-dealing, or failure to follow trust terms. A single mistake in trust administration can result in personal liability for thousands or hundreds of thousands of dollars. Professional management reduces your liability exposure by ensuring compliance with legal requirements and proper documentation of all actions.
Navigate Complex Tax Requirements
Trusts have unique and complex tax obligations including annual trust income tax returns (Form 1041), estate tax returns if required, generation-skipping transfer tax considerations, and special rules for distributions to beneficiaries. Trust taxation is significantly different from individual or corporate taxation. We coordinate with CPAs or handle trust tax matters to ensure compliance and tax efficiency.
Manage Family Dynamics and Beneficiary Relations
Trust administration often involves family members with competing interests, different needs, and sometimes decades of family dynamics. Professional guidance helps you navigate sensitive family situations, communicate appropriately with beneficiaries, document your decisions, and respond to beneficiary concerns in ways that minimize conflict and protect you from liability.
Interpret and Apply Trust Provisions
Trust documents are legal contracts with specific language that must be followed precisely. Many trustees struggle to understand what trust provisions mean or how to apply them to real-world situations. We help you interpret complex provisions, understand settlor intent, and apply trust terms correctly to current circumstances.
Protect Against Beneficiary Claims and Litigation
Beneficiaries sometimes sue trustees claiming mismanagement, self-dealing, or failure to distribute properly. Professional trust management creates a documented record of proper administration that defends against claims. If litigation occurs, having worked with counsel throughout administration provides strong defense against beneficiary challenges.
Coordinate Investment Management and Asset Protection
Trustees must invest trust assets prudently and diversify appropriately. This requires understanding the prudent investor rule, modern portfolio theory, and how to balance current income needs with long-term growth. We help you establish appropriate investment policies, work with investment advisors, and document that investments are prudent under the circumstances.
Facilitate Trust Termination or Modification
When a trust has served its purpose, needs to be modified for changed circumstances, or should be terminated, trustees need legal guidance to follow proper procedures. Kansas law provides several modification and termination options, but each has specific requirements. We guide you through these processes while protecting tax treatment and avoiding unintended consequences.
Comprehensive Trust Administration Support
We provide full-service trust management support tailored to your specific situation:
Initial Trust Administration and Transition
When you first assume trustee duties, we guide you through critical initial steps including reviewing the trust document and understanding your duties, obtaining a tax identification number (EIN), notifying beneficiaries as required by law, inventorying and valuing trust assets, establishing trust bank accounts, and securing and protecting trust property.
Ongoing Trust Administration Guidance
For trustees managing ongoing trusts, we provide continuing support including interpreting trust provisions, making distribution decisions, handling beneficiary communications, maintaining proper records and accountings, managing investments prudently, and ensuring compliance with fiduciary duties.
Trust Tax Preparation and Planning
We coordinate trust tax compliance including Form 1041 preparation or coordination with CPAs, K-1 distribution to beneficiaries, estate tax returns if required, gift tax reporting for trust distributions, generation-skipping transfer tax considerations, and tax planning to minimize trust and beneficiary taxes.
Beneficiary Distributions and Accounting
We help trustees make appropriate distributions and maintain proper accountings including determining mandatory vs. discretionary distributions, applying trust distribution standards (“health, education, maintenance, and support”), balancing beneficiary interests fairly, preparing formal trust accountings, and documenting distribution decisions to defend against future challenges.
Trust Modification and Termination
When circumstances change or a trust should be modified or terminated, we guide you through Kansas law options including judicial modification for changed circumstances, non-judicial modification with beneficiary consent, decanting to a new trust with updated terms, trust termination and final distribution, and merger of multiple trusts for administrative efficiency.
Special Needs Trust Administration
Special needs trusts require specialized administration to preserve public benefits. We provide guidance on allowable vs. prohibited distributions, coordination with SSI and Medicaid, avoiding disqualification of benefits, proper pooled trust administration, and ABLE account coordination.
Trust Dispute Resolution and Litigation
When beneficiaries challenge trustee decisions or disputes arise about trust interpretation, we provide representation including responding to beneficiary demands, defending trustees in breach of fiduciary duty claims, seeking court instruction on unclear provisions, removing and replacing trustees when necessary, and resolving beneficiary disputes through mediation or litigation.
Corporate Trustee Support
For banks, trust companies, and professional fiduciaries, we provide legal support including complex trust interpretation, beneficiary dispute resolution, court accounting preparation and defense, fiduciary litigation defense, and training on Kansas trust law and fiduciary duties.
Errors That Create Trustee Liability
Failing to Follow the Trust Document
The trust document is the governing law for trust administration. Trustees who ignore or deviate from trust provisions, even with good intentions, breach their fiduciary duties. Common mistakes include making distributions not authorized by trust terms, ignoring mandatory distribution requirements, failing to follow investment directions, and disregarding successor trustee provisions. Read the trust document carefully and follow it precisely. When provisions are unclear, seek legal guidance rather than guessing.
Commingling Trust Assets with Personal Assets
Keeping trust assets separate from personal assets is a fundamental trustee duty. Commingling creates accounting nightmares, raises questions about self-dealing, and can result in personal liability for trust losses. Trustees must maintain separate bank accounts, never deposit personal funds in trust accounts, never pay personal expenses from trust accounts, keep meticulous records of all transactions, and title all trust property clearly in the trust name.
Poor Communication with Beneficiaries
Kansas law requires trustees to keep beneficiaries reasonably informed. Failing to communicate creates beneficiary distrust and often leads to litigation. Common mistakes include failing to notify beneficiaries of their beneficial interest, refusing to provide accountings when requested, ignoring beneficiary questions or concerns, making distribution decisions without explanation, and being defensive or dismissive of beneficiary inquiries. Transparent communication prevents most beneficiary disputes.
Improper Investment Management
Trustees must invest trust assets prudently according to the prudent investor rule. Common investment mistakes include failing to diversify assets appropriately, investing too conservatively or aggressively, keeping assets in non-productive investments, self-dealing by using trust assets for personal benefit, and failing to consider both income and growth needs. Even well-meaning investment decisions can breach fiduciary duties if not properly considered and documented.
Inadequate Record Keeping
Trustees must maintain complete, accurate records of all trust transactions. Poor record keeping makes it impossible to prove you’ve acted properly if challenged. Trustees should keep detailed records of all receipts and disbursements, investment transactions and rationale, distribution decisions and supporting documentation, communications with beneficiaries, and professional advice received. Digital record-keeping systems help maintain organized records.
Self-Dealing or Conflicts of Interest
Trustees owe undivided loyalty to beneficiaries. Self-dealing, even unintentional, is a serious breach of fiduciary duty. Common self-dealing mistakes include purchasing trust assets for yourself or family, selling personal assets to the trust, borrowing from trust funds, using trust assets for personal benefit, and employing yourself or family members without proper authorization and fair compensation. Avoid all transactions that benefit you personally, even if they seem fair.
Failing to Obtain Professional Guidance
Many trustees try to handle complex trust administration alone, often because they want to save on fees or believe they can figure it out themselves. This is penny-wise and pound-foolish. The cost of professional guidance is minimal compared to potential liability for mistakes. Trustees should seek legal counsel for unclear provisions, complex decisions, beneficiary disputes, tax planning, and investment policy development. Professional fees are typically paid from trust assets as administrative expenses.
| Your Situation | DIY Possible? | Risk Level | Our Recommendation |
|---|---|---|---|
| Simple family trust, under $250K, clear terms, cooperative beneficiaries, no disputes | Maybe | Low-Moderate | Initial consultation recommended to understand duties and review trust document. May handle ongoing administration with occasional guidance. |
| First-time trustee, willing to learn, straightforward trust, ready to ask questions when needed | Possible | Moderate | Initial training consultation plus ongoing support as issues arise. Professional review of first accounting recommended. |
| Complex trust: business interests, real estate, multiple properties, or assets over $1 million | No | High | Ongoing professional guidance essential. Asset complexity creates significant liability exposure. Professional administration strongly recommended. |
| Beneficiaries are questioning your decisions, threatening litigation, or demanding accountings | Absolutely Not | SEVERE | Immediate legal counsel required. Document everything. Do not communicate with beneficiaries without attorney guidance. Litigation risk is high. |
| Trust document has unclear, contradictory, or ambiguous provisions you don’t understand | No | High | Legal interpretation needed immediately. Guessing at settlor intent can result in breach of duty. May need court instruction. |
| Special needs trust for disabled beneficiary receiving SSI, Medicaid, or government benefits | Never | SEVERE | Specialized counsel absolutely required. Wrong distribution can disqualify beneficiary from benefits. Too risky for DIY under any circumstances. |
| Trust modification or termination needed due to changed circumstances | No | High | Legal process with tax and compliance implications. Kansas law provides several modification options - each requires specific procedures. Professional guidance essential. |
| Complex tax issues: generation-skipping transfer tax, estate tax, or unfamiliar Form 1041 requirements | No | High | CPA and attorney coordination required. Trust taxation differs significantly from individual returns. Errors create personal liability for penalties. |
| You’re uncertain about investment decisions, distribution standards, or proper procedures | No | Moderate-High | Uncertainty signals need for guidance. Professional consultation prevents costly mistakes. Cost of advice is far less than cost of errors. |
| You’re facing potential conflicts of interest or situations where you might personally benefit | No | Very High | Immediate attorney consultation essential. Self-dealing is serious breach even if unintentional. Need guidance on proper procedures to avoid liability. |
Missing Tax Filing Deadlines
Trusts have strict tax filing deadlines that trustees must meet. Missing deadlines results in penalties and interest that trustees may be personally liable for. Critical deadlines include Form 1041 due April 15 for calendar year trusts, estate tax returns due 9 months after death, K-1s to beneficiaries by Form 1041 filing deadline, and quarterly estimated tax payments if required. Calendar your deadlines and engage professionals well in advance.
Experience That Makes the Difference
5,423 Trusts Created, Deep Administration Experience
Over 27 years, Gary Eastman has created 5,423 trusts for Kansas families. This isn’t just about drafting documents. Creating thousands of trusts means understanding what works in real-world administration, what causes problems for trustees, and how to design trusts that achieve their purposes without unnecessary complexity. We guide trustees through administering the very types of trusts we’ve spent decades perfecting.
Both Legal and Financial Expertise
Gary’s dual credentials (J.D. and M.B.A. in Finance from the University of Kansas) are essential for trust administration. Trustees must make investment decisions, understand tax implications, interpret financial statements, and comply with fiduciary standards. Most attorneys lack this financial training. We provide guidance on both the legal requirements and the financial management aspects that make trust administration successful.
From Simple to Complex Trusts
We guide trustees managing revocable living trusts, irrevocable life insurance trusts, charitable trusts, special needs trusts, dynasty trusts, and complex multi-generational structures. Having created 5,423 trusts across all types and complexity levels, we understand the unique administration challenges each type presents and provide practical, specific guidance for your situation.
Comprehensive Estate Planning Background
Trust administration doesn’t exist in isolation. With experience serving 5,407 estate planning clients, creating 1,257 wills, and administering 143 probate estates, we understand how trusts interact with overall estate plans, probate proceedings, and tax strategies. This comprehensive perspective ensures your trust administration coordinates properly with every other aspect of the estate.
What Our Clients Say
“Gary helped me through a very difficult time as executor of my father’s estate and trustee of his trust. He was patient with my questions, explained everything clearly, and made sure I understood my responsibilities.
“I couldn’t have done it without his guidance.”
“As a professional trustee, I rely on Gary for complex trust interpretation and beneficiary disputes. His knowledge of trust law is excellent, and he provides practical guidance that helps me fulfill my fiduciary duties while avoiding unnecessary conflict.”
Trust Management Questions Answered
Q: What are your office hours and response times for trustee questions?
Our office is open Monday through Friday, 8:00 AM to 5:30 PM, and we return calls within 60 minutes.
Trustees often have time-sensitive questions about distributions, investments, or beneficiary issues that require quick guidance. We prioritize trustee support because delays can create liability exposure.
Most trust-related matters requiring immediate attention are addressed within 4 weeks on average, though ongoing trust administration support is continuous and responsive to trustee needs as they arise.
Our Leawood office at 4901 W 136th St Suite 240 offers 45 free parking spaces including 6 ADA-compliant spaces with ground-level access for trustee consultations.
Q: What is your track record with trust creation and administration?
Over 27 years since 1998, Gary Eastman has created 5,423 trusts for Kansas families.
This extensive trust drafting experience means we understand what works in real-world administration, what causes problems for trustees, and how to design trusts that achieve their purposes without unnecessary complexity. Gary’s dual credentials, a J.D. (law degree) and M.B.A. in Finance from the University of Kansas, provide both the legal expertise and financial understanding essential for sophisticated trust management.
Trustees must make investment decisions, understand tax implications, interpret financial statements, and comply with fiduciary standards, all of which require this unique combination of skills.
We’ve served 5,407 estate planning clients overall, drafted 1,257 wills, and administered 143 probate estates, giving us comprehensive understanding of how trusts interact with overall estate plans.
We return calls within 60 minutes during business hours and address most trust-related matters requiring immediate attention within 4 weeks on average.
Q: What are my duties as trustee?
As trustee, you have several fiduciary duties: Duty of loyalty (act solely in beneficiaries’ best interests), duty of prudence (manage trust assets carefully and reasonably), duty of impartiality (treat beneficiaries fairly according to trust terms), duty to inform and account (keep beneficiaries reasonably informed and provide accountings), duty to follow trust terms (administer according to the trust document and law), and duty to segregate assets (keep trust property separate from personal property).
These are the highest legal duties recognized, and violations can result in personal liability.
Q: Can I be paid for serving as trustee?
Yes, trustees are entitled to reasonable compensation for their services unless the trust document specifically says otherwise. Kansas law allows “reasonable compensation” which typically means a percentage of trust assets (often 1-2% annually) plus reimbursement of reasonable expenses.
If you’re a family member trustee, you can choose to serve without compensation, but you’re entitled to payment. Corporate and professional trustees typically charge published fee schedules.
Q: How often must I provide accountings to beneficiaries?
Kansas law requires trustees to keep qualified beneficiaries reasonably informed about trust administration. This generally includes providing an accounting annually showing all receipts, disbursements, assets, and liabilities. Some trusts require more frequent accountings. Beneficiaries can also request accountings at reasonable intervals. Formal court accountings are typically only required when terminating a trust or if disputes arise.
Q: Can I invest trust assets however I want?
No, trustees must follow the “prudent investor rule” under Kansas law.
This means diversifying investments reasonably, considering both income and growth needs, balancing risk and return appropriately, and considering the purposes and terms of the trust.
You can’t put all trust assets in a single risky investment or keep everything in cash earning no return. If the trust document provides specific investment directions, you must follow them unless they’re now imprudent due to changed circumstances.
Q: What if beneficiaries disagree with my decisions?
First, ensure you’re acting within your authority under the trust document.
Document your decision-making process and rationale. Communicate clearly with beneficiaries about why you’re making specific decisions.
If beneficiaries still disagree, consider whether you need to seek court instruction, especially if the trust language is unclear. Remember that as trustee, you have discretion in many areas. You don’t need beneficiary approval for proper trust administration, but you should be able to defend your decisions as reasonable and in accordance with your fiduciary duties.
Q: Can I hire professionals and pay them from trust assets?
Yes, trustees can and should hire professionals (attorneys, CPAs, financial advisors, appraisers) when needed. Professional fees are legitimate trust expenses payable from trust assets.
However, fees must be reasonable, and you should ensure you’re getting value for the fees paid. Hiring professionals doesn’t relieve you of fiduciary responsibility, but it helps you fulfill your duties properly and provides documentation that you sought expert guidance.
Q: What if the trust document is unclear or outdated?
When trust provisions are ambiguous or seem outdated for current circumstances, trustees have several options:
Seek legal counsel to interpret provisions based on settlor intent and Kansas law, petition the court for instruction on proper interpretation, consider non-judicial modification if all beneficiaries agree, or explore trust decanting to move assets to a new trust with updated terms.
Never simply ignore unclear provisions or assume what the settlor meant without proper analysis.
Q: Can a trust be modified or terminated?
Yes, Kansas law provides several ways to modify or terminate trusts: If the trust purpose has been achieved or become impossible, if all beneficiaries and the settlor (if living) agree, through judicial modification for changed circumstances not anticipated by settlor, through decanting to a new trust with modified terms, or through merger with another trust if it serves beneficiary interests.
Each method has specific legal requirements that must be followed.
Q: What is decanting and when is it used?
Decanting is transferring assets from an existing trust to a new trust with modified terms.
It’s useful when you need to update administrative provisions, change trustee succession, add asset protection features, correct drafting errors, or modernize outdated trust language. Kansas allows decanting under certain conditions. It’s a powerful tool but must be done carefully to avoid tax consequences and ensure the new trust serves beneficiary interests.
Q: How do I resign as trustee?
Trustees can resign following procedures in the trust document or Kansas law. Generally, you must give written notice to qualified beneficiaries and any co-trustees, ensure a successor trustee is appointed or petition the court to appoint one, provide a final accounting to beneficiaries, and formally transfer trust assets to the successor trustee.
You cannot simply walk away; proper resignation procedures protect you from future liability.
Q: What happens if I breach my fiduciary duties?
Breach of fiduciary duty can result in serious consequences: Personal liability for losses caused by the breach, removal as trustee, surcharge requiring you to restore lost value plus interest, payment of beneficiaries’ attorney fees, and potential criminal charges for intentional misconduct like embezzlement.
This is why professional guidance is essential – the cost of mistakes far exceeds the cost of proper administration.
Q: Do I need a lawyer for trust administration or can I do it myself?
While simple trusts can sometimes be administered without ongoing legal counsel, most trustees benefit from at least initial guidance to understand their duties and review the trust document.
You definitely need legal counsel if the trust is complex or high-value, beneficiaries are questioning your actions, the trust document is unclear, you’re facing potential conflicts of interest, tax issues are complex, or you’re considering modification or termination.
The cost of professional guidance is minimal compared to potential liability for mistakes.
Our Suite Of Legal Services for Every Stage of Life
Life changes. Your estate plan should too. Whether you’re planning ahead or managing an estate after loss, from creating your first estate plan to administering complex trusts, we provide the guidance Kansas families need.
ESTATE PLANNING →
Eliminate the "what-ifs" with a custom legal framework designed to bypass the delays of probate. You get a strategic plan, from living trusts to asset protection, that ensures your legacy transitions to your heirs without administrative friction.
WILL PREPARATION →
Prevent the court from making your family's decisions. A professionally drafted will provides the definitive roadmap for your estate, naming legal guardians and securing asset distribution so your instructions are followed exactly as intended.
POWERS OF ATTORNEY →
Maintain control over your medical and financial decisions even when you can’t speak for yourself. By establishing durable directives now, you bypass the need for expensive, court-supervised guardianship and empower a person of your choosing to manage your affairs without delay.
PROBATE ADMINISTRATION →
Hand off the legal and administrative weight of the court process. Instead of navigating complex filings and creditor notices alone, you get a clear path through the local probate requirements, ensuring the estate is settled accurately while protecting you from personal liability.
ASSET PROTECTION →
Safeguard your life’s work from future creditors and legal claims. By implementing specific structures like irrevocable trusts or business entities now, you insulate your holdings from external threats and ensure that the assets you’ve built remain available for your family’s future.
TRUST MANAGEMENT →
Keep your estate plan functional as your life and the law evolve. Whether you are navigating the complexities of current trust administration or need to modify existing documents to reflect new family dynamics, you ensure your legal structures stay relevant and fully enforceable.
TAX & FINANCIAL PLANNING →
Stop losing a significant portion of your legacy to unnecessary estate and inheritance taxes. By integrating tax-efficient strategies into your legal framework, you protect your beneficiaries from heavy tax burdens and ensure more of your hard-earned assets reach the next generation intact.
BUSINESS SUCCESSION →
Ensure the company you built survives your departure without triggering a liquidity crisis or family dispute. By codifying a clear transition plan now, you protect the value of your business and provide your successors with the legal authority they need to maintain operations and secure your family's financial future.
START YOUR PLAN →
Move from uncertainty to a concrete legal strategy. Schedule a consultation to review your current holdings and identify the specific structures needed to protect your family and your business across the Kansas City metro area.
Kansas-Specific Trust Administration Rules
Kansas Trust Code
Kansas enacted the Uniform Trust Code in 2002, providing comprehensive rules for trust creation, administration, and termination. The Kansas Trust Code governs trustee duties, beneficiary rights, trust modification, judicial proceedings, and creditor claims. Understanding Kansas trust law is essential for proper administration.
Trustee Duties Under Kansas Law
Kansas law codifies specific fiduciary duties: Duty of loyalty (avoid conflicts of interest), duty of prudence (invest and manage as prudent investor), duty of impartiality (act impartially toward beneficiaries), duty to inform and account (keep beneficiaries informed), duty to follow trust terms (administer according to trust document), and duty to incur only reasonable costs (minimize administrative costs).
These duties can’t be waived, though trust documents can expand or modify some duties.
Beneficiary Rights in Kansas
Kansas law provides beneficiaries with specific rights: Right to receive information about the trust, right to annual accountings from trustee, right to enforce trust terms and hold trustee accountable, right to petition court for instruction or removal of trustee, and right to notice of trust proceedings.
Qualified beneficiaries (those with current or future interests) have more extensive rights than remote beneficiaries.
Kansas Trust Modification and Termination
Kansas provides several mechanisms for trust modification: Modification by settlor (if trust is revocable or settlor reserved modification power), modification by consent (if all beneficiaries and settlor agree), judicial modification (for changed circumstances or to further trust purposes), and non-judicial modification (for certain administrative changes).
Termination is allowed when trust purpose is fulfilled or becomes impossible, or when uneconomical to continue a trust with small value.
Decanting in Kansas
Kansas law allows trustees to decant assets from one trust to another in many circumstances. This provides flexibility to update trusts without judicial proceedings. Kansas decanting law includes significant protections ensuring decanting serves beneficiary interests and doesn’t undermine settlor intent.
Proper decanting requires careful legal analysis to avoid tax consequences.
Trust Protectors in Kansas
Kansas law recognizes trust protectors – individuals or entities given specific powers over trust administration separate from trustee powers. Trust protectors can remove and appoint trustees, modify trust terms within limits, direct or veto investment decisions, or exercise other powers granted by the trust document.
This provides additional flexibility and oversight in trust administration.
Virtual Representation in Kansas
Kansas allows virtual representation where one beneficiary can represent and bind other beneficiaries with similar interests in trust proceedings. This simplifies trust proceedings by avoiding the need to involve every potential beneficiary. Virtual representation is particularly useful for trusts with many beneficiaries or contingent interests.
Trust Income Tax in Kansas
Kansas follows federal rules for trust income taxation with some modifications. Trusts are subject to Kansas income tax on Kansas-source income. However, Kansas provides exemptions for certain trust income including Social Security benefits and some retirement income. Trusts are taxed at higher rates than individuals, making tax planning important.
Creditor Claims Against Trusts
Kansas law protects trust beneficiaries from creditors to varying degrees depending on trust type. Spendthrift trusts protect beneficiary interests from most creditors. Discretionary trusts provide even stronger protection since beneficiaries have no enforceable right to distributions. However, certain creditors (child support, alimony, government claims) can reach trust assets despite spendthrift provisions.
Trustee Liability and Indemnification
Kansas law provides that trustees are personally liable for trust obligations unless the trust contract limits liability. However, trustees are entitled to indemnification from trust assets for liabilities incurred in proper administration. This means trustees who act properly can’t be held personally liable even if trust obligations exceed trust assets. Proper administration and documentation protect trustees from personal exposure.
Let’s Get Together And Discuss Your Options
Our Leawood office at 4901 W 136th St Suite 240 is centrally located to serve trustees throughout Johnson County and the Kansas City metro area. With 45 free parking spaces including 6 ADA-compliant spaces and ground-level access, we provide convenient, accessible service for trustee consultations, beneficiary meetings, and ongoing trust management support.
Get the Trust Administration Support You Need
Your Next Steps:
1. Schedule a Trust Administration Consultation
Contact us today to discuss your trust, your responsibilities as trustee, and areas where you need guidance. We’ll review the trust document and identify immediate priorities.
2. Gather Trust Documents and Information
Collect the complete trust document (including all amendments), asset statements and valuations, beneficiary contact information, prior trust accountings if available, and any correspondence from beneficiaries. This allows us to provide comprehensive guidance.
3. We’ll Review and Advise on Your Duties
We’ll analyze the trust provisions, explain your specific duties, identify potential issues or ambiguities, and create an administration plan tailored to your trust.
4. Implement Proper Administration Procedures
We’ll help you establish proper procedures for record-keeping, prepare required accountings and tax returns, make appropriate distributions, and communicate effectively with beneficiaries.
5. Ongoing Support as Needed
Trust administration is ongoing. We provide continuing support as issues arise, circumstances change, or questions develop. You’re not alone in this responsibility.
Additional Resources:
- Review our Estate Planning services for creating or updating trusts
- Explore Tax and Financial Planning for trust tax strategies
- Learn about Probate Administration if trust assets must go through probate
Serving Families Throughout Johnson County
The Eastman Law Firm proudly serves families across Johnson County and the greater Kansas City metropolitan area. Wherever you are in our community, we're here to help.
Expert Guidance for Confident Trust Administration
Being a trustee is a serious responsibility with significant legal obligations.
You don’t have to navigate it alone.
At The Eastman Law Firm, we provide comprehensive trust management support to help trustees fulfill their fiduciary duties with confidence. Whether you’re just beginning as trustee, managing ongoing administration, or facing beneficiary disputes, we provide the guidance and support you need.
Protect yourself and your beneficiaries. Schedule your consultation today.
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