Trust Administration
Trust administration
If you have been named successor trustee, you have taken on a fiduciary duty with real personal exposure. We guide trustees through every step.
Trust administration is the process a successor trustee follows after the settlor’s death: giving statutory notice to beneficiaries and heirs, inventorying and valuing assets, paying debts and taxes, allocating any subtrusts, and distributing what remains under the trust terms.
Tresp Law, APC provides trust administration services that include:
- Representation of Trustees in the administration of revocable trusts after the death of a settlor;
- Representation of Trustees in the administration of irrevocable intervivos trusts (trusts created during life);
- Advising both trustees and beneficiaries on their rights and obligations, including in the case of trustees, their fiduciary obligations;
- And representing trustees and beneficiaries of charitable remainder trusts, charitable lead trusts, irrevocable life insurance trusts, generation-skipping trusts, and educational trusts.
Properly administering the Trust, both during the Trustor’s lifetime and after death, is critical to achieve the desires of the Trustor. Assets in a properly funded Trust can be quickly and simply transferred to the intended beneficiaries upon death, without the delay and expense of a probate.
Successor trustee essentials
- First duty
- Serve the Probate Code §16061.7 notification on beneficiaries and heirs
- Valuation date
- Fair market value as of the date of death
- Personal exposure
- A trustee who administers improperly can be surcharged personally
- Typical timeline
- Weeks to months, against one to several years for probate
- Do not
- Distribute before debts, taxes and the notice period are handled
What does a trustee actually have to do?
Upon death, trust administration includes the following:
- Immediate review of the Trust, Will and assets by a knowledgeable attorney to determine any tax implications or requirements that are time sensitive;
- Inventory of all property owned by the Trustor, including property that will pass outside of the Trust, property that will be transferred to the Trust by Will, and property titled in the Trust;
- Procure the date of death values of all property, which may include professional appraisals of certain real property;
- Prepare a list of all debts at the date of death, including funeral and last illness expenses, mortgages and liens on real property;
- Manage, protect, and invest the property, including maintenance of appropriate property and liability insurance;
- Pay various debts and Trust expenses;
- Prepare and file California and federal estate tax returns;
- Prepare and record affidavits for the real property to establish the Successor Trustee, notify the county assessor of the changes in real estate ownership resulting from the Trustor’s death, and file documents required to avoid property tax reassessment;
- In some cases, allocation of assets to Subtrusts;
- Make Trust distributions to beneficiaries, including distribution of income to a surviving spouse or an income beneficiary, as determined by the terms of the Trust;
- And prepare periodic written reports to the beneficiaries on the financial status of the Trusts when appropriately requested by them.
Why getting it wrong is expensive
The importance of proper Trust Administration is critical. The failure to properly fund Subtrusts, prepare fiduciary tax returns, properly allocate assets, prepare Trust accountings, make prudent investments, or make Trust distributions can be disastrous. If you currently serve as a Trustee, or are named as a Successor Trustee, you should obtain advice from the most qualified professionals who are familiar with current tax law, current developments in Trust law, and the administration of Trusts. Contact Tresp Law, APC right away.
Where an asset was never re-titled into the trust, a Heggstad petition may still bring it in. Where a beneficiary challenges the accounting or the trustee’s conduct, our litigation team handles the dispute.
Speak with a trust administration attorney
Tresp Law, APC is an excellent Trust Administration law firm in San Diego County, with offices in Cardiff-by-the-Sea, Mission Brewery Plaza in San Diego, and Kemmerer, Wyoming. Not all lawyers are equal. If you need a proactive, knowledgeable, and effective Trust Administration lawyer, call us today at (858) 248-2779 or contact us online to schedule a consultation.
Related services
Common questions
Frequently asked
What is the first thing a successor trustee should do?
Locate and read the trust, secure the assets, and serve the notification required by California Probate Code §16061.7 on all beneficiaries and heirs. That notice starts the 120-day contest period, so serving it correctly and promptly protects the trust.
How long does trust administration take?
Typically weeks to months for a straightforward estate, compared with one year to several years for probate. Real property sales, estate tax returns, subtrust funding or a beneficiary dispute will extend it.
Can a trustee be paid?
Yes. A trustee is entitled to reasonable compensation unless the trust says otherwise, and to reimbursement of proper administration expenses, including attorney fees incurred for the benefit of the trust.
Does a trust have to be filed with the court?
No. Unlike probate, California trust administration is generally a private process with no court supervision, which is much of the reason to have a trust. Court involvement arises only if someone petitions — for instructions, an accounting, or a contest.
What happens if an asset was left out of the trust?
It may have to go through probate — unless a Heggstad petition under Probate Code §850 can establish that the settlor intended it to be trust property. This is one of the most common problems we are called about.
This page is general legal information, not legal advice, and does not create an attorney-client relationship. California trust and probate law is fact-specific and deadlines are unforgiving — please speak with a qualified attorney about your own circumstances.
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Whether you are planning ahead, administering a trust or estate, or facing a dispute, our attorneys will tell you plainly where you stand and what your options are.