Being named successor trustee is a responsibility — not just an honor. When the grantor passes away or becomes incapacitated, the successor trustee steps into a role with serious legal obligations: notifying beneficiaries, managing assets, filing taxes, and distributing the estate according to the trust’s terms.
Most successor trustees are family members with no legal training. The rules are complex, the deadlines are strict, and the consequences of mistakes can be personally and financially devastating.
I guide trustees through every step — personally. No paralegals. No associates. You get an attorney who knows your trust, understands your obligations, and handles the details so you can focus on your family.
What Is Trust Administration?
Trust administration is the process of managing and distributing a trust’s assets after the grantor dies or becomes incapacitated. Unlike probate, trust administration is not supervised by the court — which means faster distribution but also greater responsibility on the trustee.
The successor trustee must act as a fiduciary, meaning every decision must be made in the best interests of the beneficiaries — not the trustee. Breaching this duty can result in personal liability, removal, and surcharges.
Trustee Duties Under California Law
Notification Requirements
Within 60 days of the grantor’s death, the trustee must notify all beneficiaries and heirs of the trust’s existence (Probate Code §16061.7). This notification triggers the 120-day period during which beneficiaries may contest the trust.
Asset Inventory and Management
The trustee must identify, secure, and manage all trust assets. This includes real property, financial accounts, business interests, personal property, and any other assets held in the trust’s name. Assets must be kept separate from the trustee’s personal assets.
Accounting and Transparency
Beneficiaries have a legal right to information about the trust and its administration. The trustee must provide accountings upon reasonable request and at least annually. Accountings must detail all income, expenses, distributions, and changes in asset values.
Tax Obligations
After the grantor’s death, the trust becomes a separate tax entity. The trustee must obtain an EIN, file the grantor’s final income tax return, and file annual trust income tax returns (Form 1041) until the trust is fully distributed.
Distribution to Beneficiaries
The trustee must distribute trust assets according to the terms of the trust document. Distributions must be made in a timely manner. Unreasonable delays can be challenged by beneficiaries and may constitute a breach of fiduciary duty.
Common Mistakes Trustees Make
- Commingling assets — Mixing trust assets with personal accounts is one of the most common and serious mistakes. Trust assets must always be held in separate accounts.
- Self-dealing — Using trust assets for personal benefit, even temporarily, violates fiduciary duty and can result in personal liability and removal.
- Missing notification deadlines — Failing to notify beneficiaries within 60 days can expose the trustee to liability and create grounds for contest.
- Inadequate record-keeping — Every transaction, decision, and distribution must be documented. Poor records create liability and invite disputes.
- Delayed distributions — Holding assets longer than necessary frustrates beneficiaries and can lead to petitions for removal.
How I Help Trustees
I walk you through every obligation — what to do, when to do it, and how to protect yourself. I prepare notifications, draft accountings, coordinate with tax professionals, and ensure distributions are handled properly. When disputes arise with beneficiaries, I represent your interests and defend your administration.
Every case is different. The trust terms, the assets involved, the family dynamics — all of these shape the strategy. I don’t apply templates. I build an approach that fits your specific situation.