What is administrative situs?
Situs of administration means the location in this state where the trustee maintains the office that is primarily responsible for dealing with the settlor and beneficiaries of the trust.
Where is the principal place of administration of a trust?
(a) The principal place of administration of the trust is the usual place where the day-to-day activity of the trust is carried on by the trustee or its representative who is primarily responsible for the administration of the trust.
What are trust administration services?
The trust administration role is central to carrying out your wishes regarding the use of assets in the trust. The trustee carries out your directions and follows your guidelines in handling the specific circumstances of each request for funds from trust beneficiaries.
What does it mean to change the situs of a trust?
Moving a trust means changing its situs from one state to another. Many trusts specify that the laws of a particular state govern them, in which case those laws would likely continue to apply even if the trust were moved.
How is situs of a trust determined?
This could be based on the location of the grantor, the location of the trustee or trust administrator, or the location of the beneficiaries. In general, for tax purposes, trust situs is determined by the combined jurisdictions that have the legal authority to tax a trust or trustees.
What is the concept of situs?
Definitions of Situs The situs is the physical location of a property or entity which establishes its relationship with the applicable legal, physical, and economic environment. The term is used legally to establish jurisdiction. In real estate, the term is used to refer to a location and its surrounding environment.
What is the situs of a trust?
Situs is the state that the trust originated and whose laws will govern the trust. For tax purposes a trust may be taxed in any state for which it is determined to be a resident trust under the governing states definition of residency.
Why is situs important?
Trust situs is an important issue for several reasons. Situs can dictate which state’s income tax applies, e.g., California vs. New York vs. Wyoming; situs is a factor in determining what law governs the administration of the trust; and situs often determines where a trustee or beneficiary might seek judicial relief.
What does trust administration involve?
California trust administration is the process whereby your named successor trustee marshals your assets, pays off your creditors, and eventually distributes the assets in your trust estate to your beneficiaries.
Who should manage a trust?
The Trustee is the individual who is responsible for managing all of the assets in the Trust. Usually while the Grantor is still alive, they act as the Trustee until they’re unable. If the Grantor dies or becomes incapacitated, the Successor Trustee takes over management of the Trust.
How do you move the situs of a trust?
In fact, it’s possible to change situs for a revocable trust by simply modifying it. Or, if that’s not an option, you can revoke the trust and establish a new one in the desired jurisdiction. If a trust is irrevocable, whether it can be moved depends, in part, on the language of the trust document.
Does trust situs matter?
This can lead to tax oversight, legal consequences, and significant challenges. However, when strategically applied, trust situs can provide tax benefits for all parties involved in managing or benefiting from the trust.