Are there Trust Distribution Deadlines?
There are actually no set deadlines for trust distribution in Colorado after a person passes away. Trustees are designated in these legal documents; they have the responsibilities of managing the asset distribution of the deceased person to ensure that all creditors and beneficiaries receive what is rightfully theirs. They must do so in a reasonable timeframe, but there is no explicit clarification of the term reasonable. Because there is no probate process with a trust, this distribution process would seemingly be very quick, but this is not always the case.
Situations That Can Delay Trust Distribution
- Contests to the trust
- Family disputes
- Long list of creditors demanding payments
- Dishonest trust administrator
- Invalidity of the trust
- Confusion or disagreements about the value of the estate
- Inability to locate important papers regarding property ownership, debts, bank accounts, etc.
- Tax return filing
A typical trust distribution process may take a up to 6 months to wrap up. If this process stretches out over years, the beneficiaries can petition the court to have the trustee pushed to move the process along; they can even request that the trustee be replaced. Beneficiaries also have the ability to request reports regarding the trustee’s activities around the distribution process.
Whether you are a trustee who is encountering obstacles that are making it impossible to administer the trust – or you are a beneficiary of a trust that is waiting in limbo for your inheritance to be passed down to you – hiring a Denver estate planning lawyer can help. The team at The Brown Law Firm, LLC can help you understand your rights/responsibilities and can outline a strategy for making the trust distribution process as streamlined and quick as possible. Contact us at (303) 339-3750 or send us a message online to meet with our experts.