What a Successor Trustee Does in California

Being named as a successor trustee is a significant responsibility. When the person who created the trust (the trust maker) passes away or becomes incapacitated, the successor trustee steps in to manage and eventually distribute the trust assets.

This article provides a general overview of what that role involves in California.

When Does a Successor Trustee Take Over?

A successor trustee typically assumes responsibility when:

• The trust maker passes away
• The trust maker becomes incapacitated as defined in the trust document
• The current trustee resigns or is removed

The trust document itself usually specifies when and how the transition occurs.

Key Responsibilities

While every trust is different, a successor trustee’s duties generally include:

Securing Trust Assets

One of the first priorities is identifying, locating, and securing all trust assets. This includes real property, financial accounts, personal property, and any other assets held in the name of the trust.

Notifying Beneficiaries

California law requires that beneficiaries be notified of the trust administration within 60 days of the trust maker’s death. This notification gives beneficiaries information about the trust and their right to request a copy of the trust document.

Managing Trust Property

Until assets can be distributed, the trustee must manage them prudently. This includes maintaining property, keeping accurate records, and making responsible investment decisions.

Paying Debts and Expenses

The trustee is responsible for paying the trust maker’s final debts, funeral expenses, and ongoing administration costs from trust assets.

Filing Tax Returns

This may include the trust maker’s final income tax return and, depending on the trust structure, a trust income tax return. Some trusts may also require estate tax considerations.

Distributing Assets to Beneficiaries

Once all obligations have been addressed, the trustee distributes the remaining assets according to the trust terms. This should be done carefully and documented thoroughly.

Common Mistakes to Avoid

• Distributing assets before all debts and taxes are addressed
• Mixing personal funds with trust funds
• Failing to send required notices on time
• Making decisions without understanding fiduciary obligations
• Not keeping detailed records of all transactions and decisions

Getting Help

Trust administration involves legal, tax, and fiduciary responsibilities that can be complex, especially when you’re also grieving. Working with an experienced trust administration attorney can help you understand your obligations, avoid costly mistakes, and complete the process with confidence.

If you’ve been named as a successor trustee in Westlake Village or the surrounding area, contact Jokela Estate Law to discuss your situation and understand your next steps.