Colorado professional fiduciary and trust administration services for families, beneficiaries, attorneys and professional advisors who need an independent person to administer assets, coordinate professionals and carry out fiduciary responsibilities.
Serving as trustee or administering a trust can involve far more than distributing money. Property may need to be maintained or sold, investment accounts coordinated, bills and taxes paid, professionals retained, records maintained, and beneficiaries kept informed.
Colorado Title provides attorney-led fiduciary and trust administration services for matters in which a family member may be unable, unwilling or poorly positioned to handle those responsibilities.
Colorado Trust Administration Services
Trust administration can require coordination among beneficiaries, attorneys, accountants, investment advisors, real estate professionals, insurance agents and other professionals. An independent fiduciary can provide a central point of administration and accountability.
Depending on the trust and the engagement, services may include:
- Reviewing the trust and identifying administrative responsibilities.
- Collecting and safeguarding trust assets.
- Maintaining trust records and accounting information.
- Coordinating with CPAs and tax professionals.
- Coordinating investment and financial professionals.
- Managing issues involving Colorado real estate.
- Paying appropriate trust expenses.
- Communicating with beneficiaries.
- Coordinating distributions under the trust.
- Working with attorneys and other advisors when legal or professional assistance is required.
Independent Fiduciary and Trustee Services in Colorado
Families frequently assume that a relative will serve as trustee. In practice, that arrangement is not always desirable. The proposed trustee may live outside Colorado, lack the time or experience to administer the trust, be uncomfortable with fiduciary liability, or have relationships with beneficiaries that make neutral administration difficult.
An independent professional fiduciary can be particularly useful when neutrality, documentation and coordination are important.
When a Professional Fiduciary May Make Sense
Typical situations may include:
- Adult children who do not want to administer a parent’s trust.
- Siblings who disagree about administration or distributions.
- Beneficiaries who live outside Colorado.
- Family members who do not want the responsibility or potential liability of serving as trustee.
- Trusts containing real estate or other assets requiring active administration.
- Attorneys, CPAs and financial advisors seeking an independent fiduciary for a client.
- Situations where no family member is an appropriate neutral choice.
An Alternative for Trusts That May Be Too Small for a Corporate Trustee
Not every trust contains millions of dollars in marketable securities. A trust may instead consist of a Colorado home, a brokerage account, cash and other ordinary family assets.
Some families may find that a large bank or national corporate trustee is not a practical fit for the size or nature of the trust. Others simply prefer more direct administration. Attorney-led fiduciary services can provide another option for appropriate matters.
Examples of Fiduciary and Trust Administration Matters
A Parent’s Trust After Death
A parent dies leaving a residence, brokerage account and bank accounts in trust. The adult children are beneficiaries, but none wants to assume responsibility for administering the assets, coordinating the professionals and making distributions. An independent fiduciary can provide neutral administration.
Family Conflict
Several siblings are beneficiaries of the same trust but have a difficult relationship and do not trust one another to control the assets. Using an independent fiduciary can separate trust administration from the underlying family dispute.
Out-of-State Beneficiaries and Colorado Property
A trust owns Colorado real estate, while the beneficiaries live elsewhere. Administration may require local coordination with real estate professionals, contractors, insurers, accountants and attorneys before property can be maintained, sold or distributed.
Coordinating Multiple Professional Advisors
A beneficiary or surviving spouse may already have a CPA, financial advisor, attorney and real estate professional, but no single person is responsible for coordinating the overall administration. A fiduciary can serve as the administrative point of contact while each professional continues performing work within that professional’s area.
Fiduciary Administration Beyond Traditional Trusts
The same need for neutral administration can arise outside a traditional family trust. Certain settlements, business arrangements and other transactions may require an independent person to hold, administer or distribute property according to written instructions.
For matters primarily involving the holding and release of funds, see our Colorado attorney escrow services.
For real estate transactions, see our Colorado title and closing services.
Professional Fiduciary Fees
Fiduciary compensation depends on the nature of the assets, the responsibilities involved, the expected duration of administration and the complexity of the matter.
Professional fiduciary arrangements commonly use percentage-based compensation, hourly billing, a minimum fee, or a structure tailored to the particular engagement. The appropriate arrangement can be discussed after reviewing the trust or administrative responsibilities involved.
Attorney-Led Fiduciary Administration
Trust and fiduciary administration frequently intersects with legal documents, tax matters, real estate, financial accounts and duties owed to beneficiaries. Attorney-led administration can be particularly useful when a matter requires careful documentation and coordination among several professionals.
Colorado Title focuses on practical administration: understanding what the governing documents require, identifying the assets and responsibilities, coordinating the people involved, maintaining records, and moving the matter toward completion.
Discuss a Colorado Trust or Fiduciary Matter
If you are considering appointing an independent fiduciary, need assistance administering a Colorado trust, or are a professional advisor looking for a fiduciary for a client, contact us to discuss the matter.
Call 720-681-0903.