Probate and Trust Administration

The legal process of transferring of property upon a person's death is covered under probate law. The purpose of probate laws is for people to formalize their intentions as to the transfer of their property at the time of their death (typically in a will). Their property is collected, certain debts are paid from the estate, and the property is distributed.

Usually, the decedent has named a personal representative, sometimes called an executor, to take over the management of his or her affairs upon death. If the decedent fails to name a personal representative, the court will appoint a personal representative to settle the estate.

Trusts create a "fiduciary" relationship between the trustee and the beneficiary, meaning that the trustee must act solely in the best interests of the beneficiary when dealing with the trust property. If a trustee does not live up to this duty, then the trustee is legally accountable to the beneficiary for any damage to his or her interests. A grantor may also name himself or herself as one of the beneficiaries of the trust. In any trust arrangement, however, the trust cannot become effective until the grantor transfers the property to the trustee.