Trust Administration Attorney Denver, Colorado
Meurer & Potter Law Office, Denver, Colorado
You’ve just been named successor trustee. Someone you love has passed away or become incapacitated, and now you’re holding a trust document that makes you legally responsible for managing and distributing their assets. You didn’t go to law school. You don’t know what a fiduciary tax return is. And you’re already getting calls from beneficiaries asking when they’ll receive their share.
At Meurer & Potter, P.C., our trust administration attorneys in Denver have been guiding successor trustees through this exact situation since 1991. We help you understand your legal obligations, avoid personal liability, manage beneficiary expectations, handle tax filings, and complete the administration process efficiently. Trust administration is not probate—it’s a private process that does not involve the court—but it carries serious legal responsibilities that require experienced guidance.
Just been named successor trustee? Call 303-991-3544 for a free consultation. We’ll walk you through what to do first.
What Is Trust Administration?
Trust administration is the process of managing and distributing a trust’s assets after the trust creator (the grantor or settlor) dies or becomes incapacitated. Unlike probate, trust administration is handled privately—there is no court supervision unless a dispute arises. This makes it faster, less expensive, and more private than probating an estate.
The successor trustee named in the trust document takes over management of the trust assets and is legally obligated to follow the trust’s terms, act in the best interests of the beneficiaries, and comply with Colorado law. This is a fiduciary role—meaning the trustee can be held personally liable for mistakes, mismanagement, or self-dealing. It is not a role to take lightly, and it is not something most people should attempt without legal guidance.
The Trust Administration Process
Taking the Legal Burden Off Your Shoulders During a Difficult Time
While every trust is different, the administration process in Colorado generally follows these steps:
Secure and inventory all trust assets. The successor trustee must identify, locate, and take control of every asset held in the trust—real estate, bank accounts, investment accounts, business interests, personal property, and digital assets. Each asset must be properly valued, often requiring formal appraisals for real estate and closely held businesses.
Notify beneficiaries and creditors. Colorado law requires the trustee to provide notice to all trust beneficiaries. Depending on the trust terms and circumstances, creditors may also need to be notified and given an opportunity to file claims against the trust.
Pay debts, expenses, and taxes. The trustee must pay any outstanding debts of the deceased, ongoing trust expenses (property taxes, insurance, maintenance), and file all required tax returns. This includes the decedent’s final personal income tax return and the trust’s fiduciary income tax return (IRS Form 1041 and the corresponding Colorado state filings).
Manage trust investments. Under Colorado’s Prudent Investor Act, the trustee has a legal duty to invest trust assets prudently—balancing risk, return, and the needs of both current and future beneficiaries. Non-professional trustees are strongly encouraged to work with financial advisors or delegate investment management to qualified professionals.
Distribute assets to beneficiaries. Once debts, taxes, and expenses are settled, the trustee distributes the remaining assets in accordance with the trust’s terms. Some trusts require immediate distribution; others establish ongoing trusts for minor children, spendthrift beneficiaries, or special needs beneficiaries that continue for years or decades.
Close the trust. After all distributions are made and final accountings are prepared, the trustee closes the trust. Depending on the trust terms, this may require providing a final accounting to all beneficiaries and obtaining their acknowledgment or release.
For a detailed breakdown of trustee obligations at each stage, see our Trustee Duties & Responsibilities page.
Why Trust Administration Is Not Probate
Families are often confused about the difference between trust administration and probate. They are fundamentally different processes. Probate is a court-supervised proceeding required when assets are titled in the deceased’s individual name. Trust administration is a private process that happens outside of court because the trust—not the deceased individual—owns the assets.
Trust administration is typically faster (most are completed within 6 to 12 months), less expensive (no court filing fees, no executor compensation based on estate value), and private (no public court filings, no published notice in newspapers). However, trust administration is not without complexity. If beneficiaries dispute distributions, challenge the trustee’s actions, or allege breach of fiduciary duty, the matter can end up in court—and the trustee may face personal liability.
When Trust Administration Disputes Arise
Guiding You Through Trust Administration with Care and Expertise
Not every trust administration goes smoothly. Beneficiaries may disagree about asset valuations, distribution timing, trustee compensation, or the trustee’s interpretation of trust terms. In some cases, beneficiaries allege that the trustee is acting in their own self-interest, failing to communicate, or mismanaging investments.
Our attorneys represent both trustees defending their administration decisions and beneficiaries challenging trustee conduct. We handle trust disputes, trustee removal proceedings, accounting challenges, and will contests when a trust intersects with a contested will. When possible, we resolve disputes through negotiation and mediation to avoid costly litigation. When litigation is unavoidable, we provide experienced courtroom representation.
Serving the Denver Metro Area and Colorado’s Front Range
Our office in Greenwood Village is located at 5347 South Valentia Way, near the Denver Tech Center and the I-25/Orchard Road interchange. We help successor trustees and beneficiaries throughout Denver, Colorado Springs, Centennial, Highlands Ranch, Littleton, Parker, Castle Rock, Lakewood, Arvada, Aurora, Boulder, and communities across the entire Front Range. We also work with out-of-state trustees administering Colorado-based trusts through phone and video consultations.
Frequently Asked Questions About Trust Administration
Insights to help you make informed decisions about the trust administration process.
Our FAQs offer practical guidance on trust administration and related processes. They are written to help you stay informed, not overwhelmed.
Trust administration is the process of managing and distributing a trust’s assets after the trust creator dies or becomes incapacitated. Unlike probate, it is handled privately without court involvement. The successor trustee named in the trust document is responsible for carrying out the trust’s terms, paying debts and taxes, and distributing assets to beneficiaries.
Most trust administrations are completed within 6 to 12 months, though complex trusts—especially those involving real estate, business interests, ongoing trusts for minors, or disputes among beneficiaries—can take significantly longer. The timeline depends on the trust’s complexity and whether any issues arise during administration.
Probate is a court-supervised process for estates where assets are titled in the deceased’s name. Trust administration is a private process where the trust—not the individual—owns the assets. Trust administration is typically faster, less expensive, and private. However, the trustee still has serious legal obligations and can face personal liability for errors.
A successor trustee must secure and inventory trust assets, notify beneficiaries, pay debts and taxes, manage investments under the Prudent Investor Act, distribute assets according to trust terms, and provide accountings to beneficiaries. They are held to a fiduciary standard and can be personally liable for mismanagement. For a detailed guide, see our Trustee Duties & Responsibilities page.
Yes. A trustee who fails to follow the trust’s terms, mismanages investments, engages in self-dealing, or fails to act in the beneficiaries’ best interests can be held personally liable under Colorado law. This is why working with an experienced trust administration attorney is critical—even honest mistakes can result in legal exposure.
Yes. Under Colorado law, trustees are entitled to reasonable compensation for their services. The amount depends on the complexity of the trust, the time involved, and the trustee’s responsibilities. Professional trustees (such as banks or trust companies) typically charge a percentage of trust assets. Individual trustees should document their time and discuss compensation with an attorney to avoid beneficiary disputes.
The trustee must file the decedent’s final personal income tax return and the trust’s fiduciary income tax return (IRS Form 1041 and the corresponding Colorado state return). Depending on the size of the estate, a federal estate tax return may also be required. We coordinate closely with CPAs and tax professionals to ensure all filings are accurate and timely.
Beneficiaries can challenge trustee actions, request accountings, object to compensation, or petition the court for trustee removal. If disputes cannot be resolved through communication or mediation, litigation may be necessary. Our attorneys represent both trustees defending their decisions and beneficiaries who believe the trustee is not acting properly.