Both my parents have passed away and I'm now the Sucessor Trustee of the Family Trust. We have a contract on my parents home right now with closing in mid-March. Once we receive the funds at closing, I will be distributing the funds to my 2 other brothers and myself. How do I close the trust legally? Do I have to record the trust at the Clerk of Courts office? I'm going to file a 1041 tax form this year for the Trust account with is now in my name with a new EIN number. Do I really need a lawyer to do all the paperwork to close the trust?
2 Answers from Attorneys
The trust should specify how it is to be closed. Hiring an attorney would be the best way to make sure it is all completed appropriately. I dont believe that you need to record it in the Clerk's office at all or ever.
Based on your inquiry, you are advised to file a notice of trust in the applicable
county. You are not required to retain a lawyer but you may need help with closing
the trust and filing of taxes to avoid subsequent legal issues. If probate is involved in
estate administration, you will need a lawyer. Closing the sale of the real property
will require filing a notice of trust which will likely be required by the title company.