When a loved one passes away, grief often comes with new responsibilities. For many families in California, that responsibility includes administering a trust. If you’ve been named as a successor trustee, you may suddenly find yourself managing legal, financial, and emotional matters all at once.
While trust administration usually happens outside of court – unlike probate – it still requires careful attention to the law and to the people involved. Trustees must follow legal procedures, protect assets, and act in the best interests of the beneficiaries. It’s a big job, and for first-time trustees, it can feel overwhelming.
This guide will walk you through what trust administration involves, what steps you’ll need to take, and when it’s best to reach out for professional help.
What Trust Administration Means in California
Trust administration is the process of carrying out the instructions in a trust after its creator (often called the settlor or grantor) has passed away. Although the process is private and doesn’t go through the public probate court, it still involves significant legal and financial responsibilities.
The trustee begins by reviewing the trust document to understand what it says and confirming its validity. California law requires that heirs and beneficiaries be formally notified – usually within 60 days of the trustee taking over. From there, the trustee must locate and protect all trust assets, which may include real estate, bank accounts, investments, personal property, or business interests.
Every trustee has what’s called a fiduciary duty, which means they must always act in the best interests of the beneficiaries. This responsibility lasts until the trust is fully administered, which can take anywhere from a few months to several years, depending on the complexity of the estate.
Core Duties of a Successor Trustee
If you’re serving as a successor trustee for the first time, understanding your key duties will help you avoid costly mistakes. These core responsibilities include:
- Identifying and collecting trust assets.
This includes transferring ownership of accounts and property into your name as trustee and keeping a detailed inventory. - Paying debts and expenses.
You’ll need to settle the deceased’s final bills, taxes, and any valid claims before making distributions to beneficiaries. - Managing assets during administration.
Until distributions are made, you’re responsible for maintaining property, paying insurance, managing investments, or collecting rental income. - Distributing assets to beneficiaries.
Once everything is settled, you’ll distribute the remaining assets according to the instructions in the trust.
Each step must be handled carefully and transparently. Even small oversights can lead to delays, disputes, or personal liability.
Common Mistakes First-Time Trustees Make
It’s easy to underestimate how complex trust administration can be. Here are some of the most common mistakes I see new trustees make:
- Poor communication. Failing to update beneficiaries creates confusion, suspicion, and unnecessary conflict.
- Mixing personal and trust funds. Even small accounting errors – like depositing a check into your personal account – can cause major legal problems.
- Missing legal deadlines. California requires strict timelines for certain notices and filings. Missing one can lead to penalties or challenges.
- Trying to do everything alone. Trustees who don’t get legal or financial help often discover too late that professional guidance could have saved time, money, and stress.
The key to avoiding these pitfalls is organization, communication, and proper support.
When to Contact a Trust Administration Attorney
Even if the trust seems straightforward, working with an experienced trust administration attorney can make a big difference. An attorney can:
- Review the trust and explain your legal obligations.
- Prepare and send all required notices.
- Help you handle disputes among beneficiaries.
- Coordinate with tax professionals or financial advisors when needed.
If the trust involves real estate, business interests, or multiple beneficiaries, professional help becomes even more important. The good news is that reasonable attorney fees are typically paid from the trust itself, not from your own pocket.
Having an attorney on your side not only makes the process smoother but also protects you from personal liability if mistakes occur. It allows you to focus on honoring your loved one’s wishes without feeling overwhelmed.
You Don’t Have to Do This Alone
Serving as a successor trustee is an important act of trust and love. You were chosen because someone believed you were capable of managing their affairs and caring for their legacy. But that doesn’t mean you have to do it alone.
By understanding your duties, staying organized, and seeking professional help when needed, you can handle the trust administration process confidently and correctly.
If you’ve recently become a trustee and aren’t sure where to start, reach out for guidance. Together, we can ensure you carry out your loved one’s wishes smoothly, protect the trust assets, and provide peace of mind for everyone involved.
At Cheever Law, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.