At some point, almost every trustee asks the same question: “Are we almost done?” You’ve gathered the documents, built the inventory, paid the bills, and worked through the tax returns. Beneficiaries are asking when they’ll receive their share, and you’re probably ready to put the paperwork away.

If we’re being honest, you may also be wondering what you were thinking when you said yes. You’ve signed more forms than you can count, explained the same thing to three different relatives, and quietly promised yourself you will never do this again. And now, of course, your friends are asking you to be their trustee, because somehow you look like you have it all under control.

We have sat across the table from a lot of trustees at this stage, and that mix of exhaustion and quiet pride is completely normal. Here is the hopeful part: the finish line really is in sight. There are just a few things to pull together before the final distribution.

Is the trust actually ending?

Not every trust ends when the first round of work is done. Some direct you to distribute everything that’s left; others continue for a surviving spouse, younger beneficiaries, or another purpose spelled out in the document. Your attorney can confirm whether the trust is ready to end. If it continues, so does the work, including a tax return and recordkeeping each year.

Hold something back

The balance in the bank account isn’t necessarily the amount you can distribute. There is still a final tax return to file, along with professional fees, property expenses, or other loose ends, and your CPA and attorney can help you decide how much to keep in reserve. In the meantime, a partial distribution is an option. Beneficiaries are more patient about a reserve when they understand why it is there, so tell them.

Filing a return also doesn’t mean the IRS is done looking. The IRS typically has three years to assess additional tax, sometimes six, and potentially indefinitely if a return was never filed or fraud was involved. That is why your CPA and attorney should consider any remaining exposure before everything is distributed. In some situations, requests can be made to the IRS to shorten that review period or limit your personal liability.

When families disagree

Distributions can move quickly, but if beneficiaries raise concerns or a dispute ends up in court, the process can stretch on for years. You may have heard about the fights over the estates of Michael Jackson, Aretha Franklin, and Jimi Hendrix. It doesn’t only happen to famous families, though. It can happen with close family members too.

When one client’s first parent passed, we suggested they be prepared for a fight when the second parent passed, based on what they had described about their siblings. They were upset with us and told us their family would never be that way. After the second parent passed, they came back and told us that, unfortunately, we had been right. Some of the siblings had felt slighted over the years, and now it was being dealt with.

If disagreements come up, lean on your attorney, keep communicating, and keep documenting. A clear record of what you did and why is one of the best protections a trustee has.

Pull the accounting and final returns together

Before you wrap up, you should be able to explain what happened financially while you were trustee: what the trust received, earned, paid, distributed, and still holds. Many attorneys ask for a formal trust accounting before the final distribution. Some prepare it themselves, some ask a CPA to prepare it or help, and in some cases the beneficiaries agree to waive it. Your attorney will tell you what is needed.

Either way, this is where good records pay off. If you’ve kept them, this is mostly assembling what you already have. If you haven’t, it gets painful. We have helped more than one trustee rebuild a year of transactions from bank statements, and nobody enjoys it.

On the trust’s final Form 1041, unused deductions and losses may pass through to the beneficiaries. Beneficiaries often receive their distribution before their K-1 is ready, so let them know it’s coming before they file their own returns.

Making the final distributions

Once your team gives the go-ahead, follow the trust’s instructions and keep a record of every transfer. Cash is the simplest, but for some assets, such as investments or real estate, transferring them “in kind,” as they are, may be the better choice and can avoid sale costs and sometimes tax. Talk through the right approach with your CPA and attorney.

Keep confirmation of what each beneficiary received, and don’t close the trust accounts until every payment, transfer, and late-arriving refund check has cleared. Before putting the files away, ask your CPA and attorney what to keep and for how long.

Serving as trustee often means learning a whole new set of responsibilities while managing family expectations and your own grief, and it is completely understandable to want it to be over. From tip-off to the final buzzer, having the right team matters. At Rehfeldt Group CPAs, we serve as your financial point guard, bringing the accounting and tax pieces together and working alongside your attorney until the job is done. If you’re wondering whether you’re ready to make final distributions, contact our team. Let’s finish the game together.