PRACTICE AREA
Trust Administration
Helping successor trustees carry out a loved one’s wishes and fulfill their responsibilities.
You've Been Named Trustee. Now What?
If you've been named successor trustee of a loved one's trust, you may suddenly find yourself with significant responsibilities when that person dies or becomes unable to manage their own affairs.
Most people serve as trustee only once or twice in their lives, if ever. You may be dealing with the loss of someone close to you or helping a loved one who has become incapacitated, while trying to understand unfamiliar legal and financial responsibilities. You might also be managing your own work, family and everyday commitments.
And you probably have some very practical questions:
- What exactly am I responsible for, and where do I begin?
- Am I personally responsible for any of the person's debts?
- Can I use trust funds to pay expenses, including the person's ongoing care if they're still living?
- What should I do with the house, bank accounts and other assets?
- Are there notices or deadlines I need to know about?
- What information do I need to provide to beneficiaries?
- What records should I keep?
- How long will this take, and what will it cost?
We'll help you understand what needs to happen, which responsibilities belong to you, and which parts of the administration we can handle on your behalf.
What Does a Trustee Have to Do?
As trustee, you're responsible for managing and administering the trust according to its terms and California law. Your specific responsibilities will depend on the trust, the assets it holds, and whether you're stepping in during someone's lifetime or administering their trust after death.
In either situation, you'll need to identify and protect the trust assets, maintain appropriate records, handle financial matters and follow the trust's instructions and the legal duties that apply in your situation.
There are also important differences between the two situations.
When a Loved One Becomes Incapacitated
If you're taking over because someone can no longer manage their own affairs, your responsibilities may include managing their investments, paying household expenses, overseeing real estate and making sure funds are available for their care and support.
You'll need to understand the authority the trust gives you and any requirements that must be satisfied before you can begin acting. You'll also need to coordinate with anyone who holds a financial power of attorney, particularly if your loved one has assets or financial matters outside the trust.
Depending on the circumstances, you may be managing the trust for a relatively short period or for many years.
When a Loved One Dies
If you're administering a trust following someone's death, your responsibilities will generally involve identifying and securing the assets, addressing debts and expenses, providing required notices, coordinating tax and accounting matters, maintaining records and ultimately distributing the assets according to the trust's instructions.
You may also need to arrange for property to be appraised or sold, work with financial institutions, and determine whether any assets left outside the trust require additional legal attention.
Some trusts provide for relatively straightforward distributions. Others establish continuing trusts for a surviving spouse, children or other beneficiaries. In those cases, your responsibilities may extend beyond the initial administration.
We Work Alongside You
We help our clients understand their trustee responsibilities, identify the immediate priorities and develop a practical plan for moving forward.
Our work includes preparing required documents and notices, tracking deadlines, addressing legal questions and coordinating with other professionals as needed.
We also help trustees manage communications with beneficiaries and respond to their concerns, including the family tensions that often come with them, without compromising the trustee's duties and confidentiality. We'll also address questions and work through issues that arise during the administration.
There will still be decisions you'll need to make and responsibilities that remain yours as trustee. But we will provide legal guidance and practical assistance throughout the administration, so you can carry out your responsibilities without having to figure everything out on your own.
How Long Does Trust Administration Take?
The answer depends on the circumstances.
If you're administering a trust following someone's death, a relatively straightforward administration may be completed within several months. An administration involving real estate, complicated assets, tax matters or disagreements among beneficiaries may take a year or more.
If you're managing a trust because someone has become incapacitated, your responsibilities may continue throughout that person's lifetime. Similarly, a trust that provides ongoing support for particular beneficiaries may require administration over many years.
Are You Serving as Trustee?
Whether you’re stepping in to manage a loved one’s affairs or administering their trust after death, we’ll help you understand what’s required and work alongside you throughout the process.