How to Receive Benefits From Revocable Trusts
After the settlor of a revocable trust dies, the trustee must administer the trust by contacting beneficiaries, distributing trust property and maintaining permanent records for the trust. This process can take anywhere from several weeks to several months, depending on the size and complexity of the trust. The trustee will notify the beneficiary when he is able to benefit from the trust.
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Instructions
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Review the notice of administration, which is issued upon the settlor's death. Look for the names of the parties involved in the trust. Follow the instructions issued by the trustee regarding the distribution of trust property. If an appraisal of trust property is required, expect a waiting period.
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Meet with the trustee to obtain ownership of trust property. Sign and date an Assignment, an instrument used to transfer ownership of an asset from one entity to another.
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Have trust documents notarized by a notary public. There is a fee; however, the trustee should cover the fee using trust funds.
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Take ownership of trust property. Note: During the administration of a trust, a trustee may rent out vacant property to bring a return on trust assets. Inquire whether the real estate you are to receive has been vacated and is in good condition.
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Inspect the property. If trust property does not arrive as described in the trust deed, visit a local probate court and request a hearing. States like California permit a trustee to be held liable if trust assets are lost, damaged or stolen.
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File an income tax return using IRS Form 1040. If you benefit from trust property that exceeds the $6,000 tax-free threshold for the year, you must file IRS Form 1040.
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Tips & Warnings
Arrange for delivery or pick-up of heirlooms, furniture and collectibles.
