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Trust Administration
“Never say you know a man until you have divided an inheritance with him.”
~ Johann Kaspar Lavater
Most trustees have never administered a trust. We understand that the responsibilities of a trustee can be overwhelming so we provide guidance and assistance to trustees to help make the process easy to navigate.
Trust Administration Frequently Asked Questions
What is trust administration?
Trust administration is the legal process of managing and distributing the assets held within a trust after the creator (the settlor) passes away or becomes incapacitated. It involves following the specific instructions laid out in the trust document and adhering to the California Probate Code.
What happens when the person who created a trust dies?
The trust, which was likely revocable while they were alive, typically becomes irrevocable. The designated Successor Trustee then steps in to take over management. Their first priority is to secure the assets and begin the legal notification process.
What are the responsibilities of a trustee?
A trustee wears many hats. They must:
- Identify and inventory all trust assets.
- Notify beneficiaries and heirs.
- Appraise property to establish a "stepped-up" tax basis.
- Pay valid debts, expenses, and taxes.
- Provide accountings to beneficiaries.
- Distribute the remaining assets to the beneficiaries.
How long does trust administration take in California?
While it is much faster than probate, it isn't overnight. A simple administration may take 6 to 12 months. More complex estates involving real estate sales, business interests, or federal estate tax returns can take longer.
Do I need an attorney to administer a trust?
While not legally required, it is highly recommended. The California Probate Code is dense, and even "innocent" mistakes by a trustee can lead to personal lawsuits from beneficiaries. An attorney ensures the trustee meets every legal deadline and fulfills their fiduciary duties.
