Losing a loved one is never easy, and navigating the next steps can be overwhelming. If you've been named as the trustee of the estate, you may find yourself faced with a myriad of tasks: sorting through personal belongings, managing financial documents, settling debts and taxes, administering the Will and Living Trust, closing accounts, and distributing assets to beneficiaries in a legal manner. 

What follows is a brief overview of the trust administration process. It is never this simple. A dedicated estate planning firm can be a vital resource, and we are more than happy to assist you. Please contact us immediately if we can help.

Your Role as Trustee

If your loved one left a valid Living Trust along with a “Pour-Over” will, you are in a favorable position. As we like to mention, only 1 in 3 Americans have done any estate planning at all, and the number with a living trust is likely far lower. With a living trust, your loved one’s beneficiaries are in the enviable position of having avoided going through the probate process.

As Trustee, your role involves numerous responsibilities. You may choose to educate yourself on these duties or seek professional help from a firm like ours. Your duties include not mixing trust assets with your own, ensuring fairness among beneficiaries, investing trust assets prudently, keeping accurate records, filing taxes, minimizing conflict, among many others.  

Essential Documents for Trust Administration

To start, gather all relevant documents:

• Trust
• Wills
• List of Assets
• Property Deeds
• Death Certificate
• Tax Documents
• Funeral Instructions

These documents are crucial for managing the estate and ensuring beneficiaries' rights. If the Estate Plan was located before the deceased's passing, any specific funeral or memorial instructions must be followed. Obtain several certified copies of the Death Certificate for various administrative purposes.

Key Administrative Responsibilities 

Review The Entire Estate Plan 

Carefully review every document in the Estate Plan. Consult with an attorney if you find any complexities. Key considerations include funeral instructions, specific bequests, and the residuary trust.

Listing Assets and Reviewing the Trust

As Trustee, you must inventory all assets both within and outside the Living Trust. This includes real estate, bank and investment accounts, and personal belongings. The Trust provides instructions on distributing these assets. Make sure to include all necessary documents and keep your inventory transparent to all beneficiaries.

Handling Assets and Debts

As Trustee, you are responsible for paying the decedent’s bills and deciding whether to sell any trust assets. Keep in mind that administrative and ongoing expenses are part of your duties. Seek professional advice to avoid potential disputes and ensure proper management.

Filing Taxes

You must file the final tax return for the deceased and any necessary returns for the Trust. Due to the complexity of tax laws, we recommend working with a CPA.

Distribution of Assets

Before distributing any assets, ensure all debts, taxes, and administrative tasks are completed. Distribution may involve transferring titles and working with financial institutions. Consult with an estate attorney and accountant to avoid mistakes.

Dealing with Assets Not in the Trust

If you discover assets that were not included in the Trust, you may need to address them through probate or other legal processes. In California, a Heggstad Petition can sometimes help transfer assets into the Trust without full probate.

Provide Accurate Records and Communicate Openly

It is highly recommended to provide beneficiaries with updates on a regular basis to minimize conflict and keep interested parties informed of the status of the trust. Failing to do so may lead to strain on relationships or litigation, further delaying the administration of the trust. 

Professional Help for Trust Administration

While it’s possible to handle trust administration on your own, working with a qualified Trust Attorney can simplify the process and reduce personal liability. A professional law firm focusing in this area can assist with valuing the estate, resolving debts, addressing tax issues, and ensuring proper asset distribution.

How Long Does Trust Administration Take in California?

The trust administration process can often be lengthy, sometimes taking a year or more. It's important to be patient and prepare for the long-haul. To help ease the burden, consider seeking professional assistance from a law firm that specializes in this area.

Need Assistance?

Mansoor Law Firm can help you navigate the complexities of Trust Administration and ensure the proper execution of your loved one’s wishes. 

For assistance, fill out the form below, email info@mansoorlawfirm.com or call (805) 900-7850 and we will get back to you within 24 hours. We look forward to working with you!