Trust Process & Steps Frequently Asked Questions

  • What steps are involved in administering a trust?

    The process generally follows this path:

    • Review the trust document and obtain death certificates.
    • Send the mandatory Notice of Administration (California Probate Code 16061.7).
    • Gather, protect, and value all assets (inventory).
    • Obtain a Tax ID number for the trust.
    • Pay debts and taxes.
    • Final accounting and distribution.

  • Do beneficiaries need to be notified?

    Yes. Under California Probate Code Section 16061.7, the trustee must serve notice to all beneficiaries and legal heirs within 60 days of the settlor's death. This notice triggers a 120-day window for anyone wishing to contest the trust.

  • How are debts handled during trust administration?

    The trustee is responsible for identifying valid creditors and ensuring they are paid from the trust's assets before any distributions are made to beneficiaries. Failing to handle debts properly can lead to legal complications for the trustee later.

  • How are assets distributed from a trust?

    Assets can be distributed "in-kind" (transferring a deed or stock) or liquidated (selling assets and distributing the cash). Before the final distribution, it is standard practice to have beneficiaries sign a Receipt and Release form to acknowledge they received their share and to protect the trustee from future liability.

  • When do beneficiaries receive their inheritance?

    Usually, a partial distribution can be made after the initial 120-day notice period. However, a "final" distribution typically happens once all taxes are cleared and the final accounting is approved.

Trust Administration Trustee Responsibilities Trust Complications