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Navigating the Trust Administration Process




When a loved one dies, many things must be taken care of. Among them are:

  • The probate process.
  • The administration of their will and living trust.
  • Paying debts.
  • Distributing assets to their beneficiaries.

It can be a complex, time-sensitive, and delicate process under California law. It’s important to navigate it effectively, follow the administrative protocols, and avoid legal consequences.

Gather Information

The period immediately after a loved one’s death is complex and emotional. However, beginning the trust administration process as soon as possible is vital.

Once a trustee has been named, the first step in the California trust administration is to gather information regarding the deceased’s assets. It includes a complete inventory of all documents related to the estate’s assets, including titles to real property and insurance policies, stock or bond certificates, bank statements, and other financial records.

Another step is determining whether debts must be settled before distributing the estate assets. This step is essential because it can protect the trustee from personal liability for claims against the trust.

Once the trustee has gathered all this information, it is time to start the trust administration process. It may involve submitting estate tax returns, closing investment accounts, alerting regulatory bodies, paying bills and expenses, and distributing the remaining assets to recipients, based on the estate’s size and complexity.

Prepare an Inventory of Assets

A person’s estate often must go through probate when they pass away. This court-supervised procedure is where debts are settled and assets are dispersed. One of the first jobs for the experts like CunninghamLegal executor of the decedent’s estate, who will manage this procedure, is to create an inventory of the decedent’s assets.

Gathering all of the decedent’s legal and financial documents is essential. A last will, a power of attorney, and other estate planning papers may fall under this category.

Once all the legal and financial documents have been gathered, it is time to inventory the decedent’s assets. It will help you determine the overall value of the estate and will enable you to divide that amount among the deceased person’s heirs and creditors.

Once all items on your inventory have been compiled, you must submit this list to the probate court. The probate court will provide you with an inventory and appraisal form, which must be filled out in detail and include attachments.

Gather Creditor Information

The trustee is responsible for many duties during the California trust administration process. These include determining the estate’s tax liability and accounting for all assets and income. Resolving all debts and paying any outstanding penalties as quickly as possible is also necessary.

In addition, the trustee should protect all of the estate’s property during the trust administration process. It includes ensuring all of the decedent’s accounts are in their name and obtaining an appraisal of any property or valuables owned by the trust.

The trustee must also notify creditors of the trust and provide them with a written claim form. It will allow the creditor a certain amount of time to file a claim against the estate.

Alternatively, the trustee can use an optional claims procedure which may slow down or even stop creditors from pursuing any claims. This procedure is a legal and administrative expense but can be helpful where the creditors have a lot of debts or where the creditor’s money is challenging to collect.

Prepare a List for Notice

A living trust is a legal device that allows someone (the settlor) to place assets and funds while alive for their beneficiaries’ benefit. When the settlor dies, a successor trustee–usually a family member or friend–will administer the trust following the terms of the trust.

However, the California probate code requires the trustee to notify the settlor’s heirs and beneficiaries of the decedent’s death before distributing the trust assets. This notice entitles the heirs and beneficiaries to contest the trust and to seek a court order modifying or amending it.

Once the heirs and beneficiaries have been notified, you must begin the administration of the trust. It includes preparing an accounting, communicating with the heirs and beneficiaries on the status of the trust administration, gathering the assets, deciding whether to sell the home and liquidate investment accounts, notifying government agencies, paying bills and expenses, filing a tax return, and eventually distributing the remaining trust assets.

While these steps are not always required in every case, they are vital to ensure that the trust administration process is conducted according to the law and that the heirs and beneficiaries are correctly informed. Managing a trust is not just a matter of following the instructions in the trust–it also requires a keen eye for detail and a strong understanding of state-specific family law.

Open the Probate File

Probate is the legal process of marshaling and distributing assets in an estate following the death of a person. The process typically involves the named successor trustee marshaling and collecting the decedent’s assets, paying debts and taxes, and distributing the remaining assets in the estate to their beneficiaries.

During probate, the appointed administrator must notify all creditors and heirs. Creditors receive notice by mail and newspaper publication. Heirs receive information through a copy of the court’s petition and a document that tells them when they can appear before the court to contest the administrator’s appointment.

If the decedent owned any real property, it is a good idea to have an appraisal performed. The assessment establishes the cost basis of the real estate, which helps calculate attorney’s fees and taxes.

Next, the executor must open the probate file in the California probate court. It allows the creditors to submit their claims. It ensures that the executor or administrator has limited time to evaluate the shares before the creditors can turn them over to collection agencies.


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