A Brief Guide to Your Responsibilities as a Trustee

Your Responsibilities as a Trustee (administrator or agent of a trust)

Trustees are individuals or organizations tasked with managing and supervising the assets held in a trust on behalf of its beneficiaries. Trustees play a crucial role in estate planning because they ensure the successful implementation of the goals set forth by the trust’s creator, also known as the trustor, settlor, or grantor. The absence of a capable trustee can compromise even the most meticulously crafted estate plan. At the core of their obligations lies the fiduciary duties, which mandates that trustees conduct themselves in good faith and consistently place the beneficiaries’ interests above their own.

Understanding Fiduciary Duty

The legal obligation of fiduciary duty mandates that trustees conduct themselves in an honest and loyal manner with regard to the beneficiaries. This principle guarantees that fiduciaries act in the beneficiaries’ best interests when making decisions, putting aside any potential conflicts that may arise from their own personal interests. In trust law, it is critical to uphold fiduciary duty, which guarantees that trustees satisfy their responsibilities to both the settlor and the beneficiaries.

Responsibilities of a Trustee

The specific responsibilities of a trustee may differ as delineated in the trust instrument; however, in general, they encompass asset management, beneficiary communication, tax compliance, and adherence to ethical and legal principles.

Asset Management

Asset management is an essential component of a trustee’s responsibilities. To mitigate risks, trustees must ensure the diversification of trust assets, monitor investments on a regular basis, and make prudent decisions that strike a balance between growth and risk avoidance. They must evaluate investment opportunities with care in order to limit their legal liability for any losses sustained. They must carefully evaluate investment opportunities and ensure the trust’s assets are productive.

Maintaining Records and Reporting

To uphold accountability and transparency, it is critical to maintain accurate records and timely reports. Trustees must keep detailed records of all trust transactions and provide requested reports to beneficiaries. Complying with fiduciary obligations, such as filing tax returns, is of the utmost importance.

Effective Communication

Trustees must ensure effective communication with beneficiaries and co-trustees to keep all stakeholders informed about trust-related matters. Ensuring trust and transparency in asset management necessitates timely updates, inquiry resolution, and clear explanations of decisions.

Tax Compliance

It is the trustees’ duty to understand and satisfy all tax obligations associated with the trust, such as those relating to income, estate, and gifts. It is imperative that individuals file tax returns with accuracy and contemplate the tax ramifications of asset allocation decisions.

Distribution of Assets

Trustees must distribute trust assets fairly and equitably, considering the individual beneficiaries’ needs and circumstances, and in accordance with the terms of the trust. Trustees must impartially navigate conflicting interests among beneficiaries and pursue resolutions that benefit all parties involved.

Ethical and Legal Compliance

Trustees must maintain legal and ethical standards, act in the beneficiaries’ best interests, and avoid any potential conflicts of interest. It is critical that they approach disputes and legal proceedings with integrity and candor, actively seeking legal counsel when necessary.

A Guide to Court Proceedings

Trustees may be required to intervene in court proceedings under specific conditions, including beneficiary disputes or substantial decisions that demand judicial approval. In addition to being legally compliant, they are required to be ready to furnish the required documentation in support of their fiduciary duties.

The dissolution or termination of the trust

The trust terminates when all beneficiaries receive their distributions and the trustee has satisfied all administrative responsibilities. Trustees must follow legal protocols for termination, including asset allocation and final tax filings. Such adherence is necessary to guarantee compliance and the appropriate dissolution of the trust.

Conclusion

In summary, the position of trustee entails substantial obligations and necessitates conscientious decision-making in adherence to ethical and legal principles. In order to guarantee the prosperity of trusts, trustees execute critical responsibilities such as asset management, effective communication, and adherence to fiduciary obligations. Trustees can safeguard trust assets for the benefit of all stakeholders by undertaking the following: remaining informed, seeking assistance when necessary, and placing the interests of beneficiaries first.

Filippi Law Firm, P.C., can guide you through the trust administration process as a trustee or beneficiary. We  provide legal services in estate planning, probate, trust administration, and trust litigation in the greater Sacramento area and Placer County, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin, California.

Comedian Jay Leno filed a petition in Los Angeles County Superior Court requesting to establish a conservatorship for his wife, Mavis Leno. This has become a notable legal development that has drawn widespread attention. The action represents a substantial progression in Leno’s often private, personal life. Following an observation of Mavis’ progressive decline in mental capacity over the years, Leno decided to pursue legal action in order to safeguard her welfare and ensure proper administration of their estate in the event of his passing.

Leno’s use of a substituted judgment petition as a legal mechanism to establish an estate plan for an incapacitated individual illustrates the complexity and importance of proactive estate planning. This highlights the importance of proactively anticipating and preparing for unanticipated events in order to minimize potential legal complications and uncertainties in the future.

People who have lost the ability to make legal decisions and do not have a comprehensive estate plan in place typically need a petition for substituted judgment, like the one Jay Leno filed. Changes in family dynamics, estate tax legislation, or occurrences of financial abuse may also require the submission of such petitions. For example, in the case where a family member who was named in an estate plan for an individual later commits financial misconduct, it is critical to amend the estate plan, especially if the individual is no longer able to manage their affairs.

The legal process pertaining to substituted judgment necessitates meticulous deliberation by the court. Prior to granting such a petition, the court assesses a multitude of factors in order to ascertain that any proposed actions are in accordance with the best interests and desires of the incapacitated individual. The aforementioned elements comprise historical philanthropic practices, connections with potential beneficiaries, the extent and characteristics of the estate, and the possible ramifications of suggested courses of action on estate duties and administrative costs.

Petitions for substituted judgments can be difficult to navigate, frequently requiring significant time, effort, and financial investment. As a result, it is advisable for individuals to investigate proactive estate planning strategies in order to reduce the probability of such interventions.

The following techniques are of utmost importance:

The establishment of a revocable living trust: When appropriately drafted and funded, a revocable living trust can function as a fundamental element of efficient estate planning. It not only assists in preventing the probate process after passing but also simplifies the continued administration of one’s estate in the case of incapacity. By empowering trustees to make distributions and amendments in accordance with changing circumstances, trusts can eliminate the requirement for substituted judgment petitions.

Utilizing a Durable Power of Attorney to appoint an agent: Appointing a representative to manage one’s financial matters via a durable power of attorney can provide immense peace of mind. This legal document retains its validity in the event that the principal loses capacity, thereby conferring authority upon the agent to carry out financial transactions in their place. By giving the authority to a reliable person to act on their behalf, individuals may be able to avoid the necessity for a conservatorship and a petition for substituted judgment.

Granting Gifting Authority: In situations where substituted judgment petitions are not required, authorizing agents to make gifts under a durable power of attorney can help mitigate the need for such actions. This authority enables representatives to effectively handle estate tax obligations in a manner that does not require court oversight, thus optimizing the estate planning process and safeguarding the personal autonomy of the individual.

Proactive estate planning enables individuals to retain authority over their affairs, even when confronted with the possibility of becoming incapacitated. By proactively implementing comprehensive strategies, individuals have the ability to secure their assets, ensure the safety of their loved ones, and mitigate the potential for legal complexities and uncertainties.

Jay Leno’s arrangement to place his wife under conservatorship poignantly illustrates the significance of preemptive estate planning. Avoid allowing uncertainty to determine your estate’s destiny. Ensure that you and your loved ones have a secure tomorrow by taking the initiative today. Keep in mind that protecting your legacy begins with careful preparation and planning.

Comprehensive estate plan package

Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, and trust litigation in the greater Sacramento area and Placer County, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin, California.

A trust is a legal document that designates one party, referred to as the trustee, to retain and administer assets on behalf of another, known as the beneficiary. A trust agreement is a legally binding document that outlines the terms and conditions for the beneficiary’s use of the assets.

The law protects certain privileges for you as a beneficiary of a trust. Even though you may not have the same authority as the trustee to manage and control the assets, it’s crucial to comprehend your rights and the appropriate methods to utilize them. In this blog post, we will go over several important rights that you have as a beneficiary to help you better understand your position within the trust.

As the beneficiary of a trust, you have the right to information, distributions, to enforce the trust, to remove the trustee, to an accounting, to challenge the trust, and to privacy. Let’s explore these more in depth.

Right to Information

You have the right to request information regarding the trust and its assets from the trustee as a beneficiary. This includes details regarding the administration of the assets, any alterations made to the trust deed, and financial statements showcasing the value of the assets.

You should also be aware of any other individuals involved in the administration or benefiting from the trust. The trust may include additional beneficiaries or co-trustees. You must have a thorough understanding of all involved parties in order to safeguard your rights as a beneficiary.

Additionally, you have the right to periodically request updates on the administration and status of the trust. This may help in notifying you of any developments or modifications that could potentially impact your rights as a beneficiary.

It is crucial to communicate with the trustee in writing and specify the information you are seeking when exercising this right. Legally, the trustee must deliver this information promptly.

When beneficiaries disagree or there are concerns regarding the management of the trust, it may be necessary to have an impartial third party, such as an attorney or accountant, evaluate and report on the trust’s management. You have the authority, as a beneficiary, to request such reviews if necessary.

Although beneficiaries are granted specific rights with respect to information pertaining to their trusts, they generally lack direct authority over the administration or allocation of assets. Unless the document specifies otherwise, the fiduciary ultimately holds the authority to make these decisions. All trusts are different, so it is important to review the authority granted to the trustee.

Right to Distributions

The trust agreement’s conditions and provisions govern the beneficiary’s entitlement to distributions from the trust. This implies that you have the right, as a beneficiary, to a certain portion of the assets held in the trust at particular times or under particular conditions.

The frequency and schedule of distributions may differ based on the nature and intent of the trust. For instance, an educational trust may limit the ability to request distributions for tuition expenses incurred during one’s collegiate years. In the case of an inheritance or living trust, it is possible to receive periodic distributions throughout one’s lifetime.

Beneficiaries must have a clear understanding of when they are eligible to request distributions from their trusts. The trust agreement should specify this information in detail, as it may vary based on factors like age, health condition, or financial hardship.

In the absence of explicit provisions concerning distribution requests in the trust agreement, beneficiaries retain the prerogative to submit reasonable appeals for distributions when necessary. However, these requests must continue to be consistent with the overall objectives and purposes of the trust, and with the authorities granted to the trustee in the trust.

Beneficiaries must establish effective communication with trustees and substantiate their need for funds with documentation or evidence when requesting distributions. Trustees are obligated to evaluate these requests in good faith and are not permitted to unduly withhold distributions without valid reasonable justification.

When a trust contains multiple beneficiaries with diverse requirements or limited resources, disagreements may occasionally emerge regarding the distribution decisions carried out by the trustees. Beneficiaries have the right to contest decisions they deem unjustified via legal means in these circumstances.

As a beneficiary of a trust that grants you both information and distribution rights over the assets it holds, it is crucial that you educate yourself on all aspects of these rights. Gaining an understanding of these rights can effectively protect your interests and promote harmonious relationships among all parties engaged in the administration of trusts and benefits.

Right to Enforce the Trust

Additionally, the beneficiary of a trust may enforce the conditions and provisions outlined in the trust agreement. Legal action may hold a fiduciary liable if they neglect their responsibilities or act in a manner detrimental to the beneficiaries’ best interests.

The beneficiaries’ ability to enforce the trust is contingent upon the particular language and provisions detailed in the trust agreement. Evidence of mismanagement, breach of fiduciary duty, or failure to distribute assets in accordance with the trust’s terms typically prompts the exercise of this privilege.

Beneficiaries must diligently examine their rights pertaining to the enforcement of trusts prior to initiating any legal proceedings. In certain instances, trustees and beneficiaries may elect to address conflicts through alternative means, such as mediation, rather than resorting to litigation.

If you have concerns about the management of your trust assets or suspect a violation of your rights as a beneficiary, you should consult with an estate planning and trust litigation attorney who specializes in trusts and estates. They can guide you in assessing the necessity of enforcement and offer guidance for the ensuing procedures.

Beneficiaries exercising this privilege are required to maintain comprehensive records and documentation in support of their claims. This may consist of communication records or financial statements from trustees that reveal inconsistencies in the management of assets or that reveal instances of transgressions of fiduciary duty.

It may be advantageous for the beneficiaries to communicate with co-beneficiaries or co-trustees who are also involved in the management or benefiting from the trust. Furthermore, these individuals might possess significant knowledge regarding possible complications within the trust that could bolster assertions for enforcement.

Gaining knowledge of one’s rights as a beneficiary with regard to the enforcement of a trust can serve to protect one’s interests and guarantee that trustees execute assets in a responsible manner on behalf of the beneficiary. Furthermore, it functions as a critical security measure to prevent potential disputes between beneficiaries and trustees through the provision of unambiguous protocols for resolving such conflicts.

Right to Remove the Trustee

You have the right to remove the them from the role as trustee if they fail to carry out their responsibilities or act contrary to your best interests. This fundamental right functions as a protective measure against possible misadministration or misuse of authority by trustees.

A multitude of reasons may warrant the removal of a trustee, including but not limited to breaches of fiduciary duty, non-compliance with the trust’s asset distribution provisions, conflicts of interest, and negligence or ineptitude in the management of trust assets. Before initiating the removal process, beneficiaries must diligently examine these justifications and amass corroboration.

In order to terminate a trustee, beneficiaries are required to adhere to particular procedures specified in the trust agreement or state legislation. Typically, beneficiaries accomplish this by submitting a petition to the court, which outlines the grounds for removal and provides evidence to support those grounds.

The court will then hold a hearing where both parties will have the opportunity to present their arguments. If it determines that there are valid reasons for removal, the court may appoint a new trustee or grant beneficiaries the authority to select one themselves.

Disagreements may emerge among multiple co-trustees in the management of trusts, potentially giving rise to disputes concerning the removal of one from their respective roles. In these circumstances, beneficiaries may also find it prudent to obtain legal counsel regarding the most suitable course of action.

Notably, the process of removing a trustee can be intricate and expensive. Before taking action, beneficiaries should therefore consult with an experienced attorney who practices in trust law.

Beneficiaries contemplating the removal of trustees must exercise their right to do so in good faith and refrain from making unfounded allegations or exploiting this privilege to gain an advantage in personal disputes. The ultimate objective should be the protection of both your rights and the assets held in trust.

Right to an Accounting

Beneficiaries’ right to an accounting is among the most significant rights pertaining to trusts. This enables them to request an exhaustive record of all activities and transactions pertaining to the trust since its inception.

Accounting reports generally detail the assets of the trust, any income they produce, the expenses incurred by the trustee, and distributions to beneficiaries. It may also contain information regarding any modifications or updates to the trust agreement.

The provision of this information is vital for beneficiaries, as it enables them to oversee the management of their assets and guarantees trustees’ transparency. This can facilitate the detection of possible concerns or inconsistencies that may require additional inquiry.

Before beneficiaries may exercise this privilege, they must submit to the trustee a formal request for an accounting. The law mandates trustees to provide beneficiaries with accountings upon reasonable requests. Neglecting to comply may expose the trustees to legal consequences.

Beneficiaries must substantiate their request for an accounting with evidence that demonstrates their criticality to this information. This evidence could consist of documentation that exposes inconsistencies in distributions or gives rise to concerns regarding asset management.

In the event that fiduciaries neglect to adhere to a reasonable request for an accounting, beneficiaries may pursue legal recourse via mediation services or resort to litigation in the courts to obtain the required information. Courts may, in certain circumstances, designate an impartial accountant to perform an exhaustive examination of trust records and generate precise financial statements on the beneficiaries’ behalf.

Note that the beneficiary initiating the request will likely be responsible for any fees related to the accounting request. Furthermore, the trust agreement might also specify provisions that impose a restriction on the frequency of accounting requests. Before proceeding with their requests, those in need of accountings from fiduciaries must therefore thoroughly examine these agreements and, if necessary, consult legal counsel.

Right to Challenge the Trust

You have the right to contest a trust as its beneficiary if you hold the belief that it is void or fails to faithfully represent the intentions of the individual who established it. This privilege is a crucial protection against possible fraudulent activities or undue influence during the trust formation process.

Motives for the Challenge:

A beneficiary may choose to contest a trust for a variety of reasons, including the creator’s competence at the time the trust was established, coercion or undue influence from a third party, or failure to comply with legal requirements for establishing trusts.

To successfully contest a trust on any of these grounds, beneficiaries are required to substantiate their claims with evidence and present them in court. We advise beneficiaries to consult with a trust attorney in California prior to embarking on this course of action.

The process:

State laws and/or provisions specified in the trust agreement determine the potential for challenging a trust. Overall, however, the subsequent procedures might be as follows:

Petition Filing: The initial course of action entails submitting a petition to the court, wherein you shall delineate the grounds for contesting the trust and furnish corroborating evidence.

Notification Delivery: Subsequent to the hearing on your petition, it is mandatory to provide notice to all pertinent parties, including trustees and other beneficiaries, apprising them of your contest.

Following this, the court will conduct a hearing at which both parties will have the opportunity to present evidence and arguments concerning the trust’s validity. If the court finds sufficient grounds to support your challenge, it may choose to nullify or amend the trust. Additionally, they might necessitate additional scrutiny or inquiry into the allegations put forth by the beneficiaries prior to reaching a definitive determination regarding the outcome of the challenge.

Implementation of Changes: The court shall designate one or more individuals with the authority to carry out any modifications or deeds as specified in the decision. On occasion, this individual may be the beneficiary who lodged the challenge or the court’s appointed trustee.

Right to Privacy

You have the right to privacy with regard to your personal information and financial affairs as a beneficiary of a trust. Trustees are required by law to uphold the privacy of your information and to prevent its disclosure without your explicit permission.

What particular data is safeguarded?

The beneficiary’s right to privacy protects personal identifying information, such as social security numbers, birth dates, addresses, and financial account numbers. Unless a law or court order requires disclosure, beneficiaries and trustees should ensure the confidentiality of all correspondence.

Ways to safeguard privacy rights:

In order to safeguard the privacy rights of beneficiaries, it is imperative that they exclusively disclose essential personal information to trustees. Additionally, they should thoroughly examine the trust agreement’s clauses for any provisions concerning confidentiality. Beneficiaries who are concerned that trustees may violate their privacy may bring these matters directly to the trustee’s attention or seek legal counsel regarding the most effective course of action.

When multiple parties, such as co-trustees or co-beneficiaries, are involved in the management of trusts, it may be imperative that all parties establish and strictly adhere to clear guidelines regarding the handling of confidential information. Beneficiaries may also wish to establish distinct communication channels, such as phone lines or email accounts, to prevent the disclosure of their personal information to unauthorized parties.

Additionally, beneficiaries should take security precautions to protect their personal information because of the unprecedented ease with which private information can become public due to technology. This may involve safeguarding physical copies of critical documents in a secure location, employing robust passwords for online accounts, and exercising caution when disclosing personal information on social media platforms.

Conclusion on your rights as the beneficiary of a trust

In summary, trust beneficiaries enjoy a range of rights that safeguard their interests and promote transparency in the management of their assets. The aforementioned rights encompass the right to privacy, access to information, the ability to challenge a trust, and the ability to remove trustees.

Beneficiaries must have a thorough understanding of these rights and how to effectively exercise them. To secure the interests of beneficiaries and navigate complex situations, it can be advantageous to consult with experienced attorneys who deal with trust administration and trust litigation.

Moreover, beneficiaries exercising these rights must do so in good faith and refrain from exploiting them for personal gain or leveling unfounded allegations against fiduciaries. Resolving trust management issues and safeguarding the best interests of beneficiaries also require the collaboration of all involved parties, including co-beneficiaries and co-trustees.

In general, it is advisable for beneficiaries to thoroughly examine their trust agreements and, if needed, consult legal counsel prior to undertaking any actions or making inquiries to trustees. This measure will safeguard the beneficiaries’ long-term interests by ensuring that all parties comply with the legal obligations and responsibilities associated with trust management. Furthermore, it will guarantee the preservation of their assets for the benefit of future generations. It is vital to understand one’s rights as a beneficiary.

Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, and trust litigation in the greater Sacramento area and Placer County, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin. California.

In estate planning, wills are essential for guaranteeing that your assets are allocated in accordance with your last wishes. But not all wills are made equal, and knowing the subtle differences between each kind is essential to making well-informed decisions regarding your estate. We’ll look at seven distinct will types in this blog post, from the most common to the least common.

Living Will: A living will, sometimes referred to as an advance healthcare directive, is a legal document that states your preferences for medical care in the event that an illness or disability prevents you from communicating your wishes. In contrast to conventional wills that mainly deal with the distribution of assets, a living will concentrates on healthcare choices, such as whether to give priority to comfort care or prolong life artificially.

Simple Will: is a straightforward legal document that specifies how you wish your possessions to be distributed after your death. It usually contains clauses that deal with beneficiary designation, selecting an executor to oversee your estate, and handling any particular instructions or bequests you may have. Simple wills are appropriate for people with simple estates and simple family structures.

Testamentary Will: When most people think of a typical will, they picture a testamentary will. It’s an official document that’s usually created with legal counsel and signed in front of witnesses. A testamentary will takes effect upon the testator’s death and is subject to the legal procedure known as probate, which carries out the tasks of confirming the will and administering the estate.

Joint Will: Two people, typically couples, can outline their desires for the distribution of their combined assets in a single document called a joint will. In contrast to individual wills, a joint will usually provides for the ultimate division of assets upon the death of the second spouse but leaves everything to the surviving spouse upon the first spouse’s death. Joint wills are less flexible and might not be able to take into account changes in relationships or circumstances, even if they can simplify the estate planning process for some couples.

Holographic Will: In a holographic will, the testator completely drafts, dates, and signs the document by hand without the need for witnesses. Holographic wills are less formal than formal testamentary wills, and in certain jurisdictions, they can be valid without the need for witnesses. They might, however, be examined more closely during the probate process to make sure they are genuine and following the law.

Pour-Over Will: When paired with a revocable living trust, a pour-over will directs that any assets not already placed in the trust during the testator’s lifetime be poured into it upon their passing. This method streamlines the estate administration process and gives you more control over how assets are distributed by ensuring that they are maintained and distributed in accordance with the conditions of the trust rather than through probate. Pour-over wills provide privacy benefits and streamline the probate process, although they do not completely remove the need for it. In order to ensure that the pour-over will and trust meet specific requirements and goals and offer comfort to the testator and beneficiaries, it is imperative that the trust be adequately funded during the testator’s lifetime and that the testator works with a knowledgeable estate planning attorney.

Bonus Will

*Oral Will: An oral will is a written statement of a person’s last desires given in front of witnesses. Generally speaking, oral wills are only accepted under specific conditions—for example, when a person is about to pass away and cannot write a will. Nonetheless, they may not be accepted in all jurisdictions and are subject to strict legal requirements. These types of wills are typically not valid in California.

The kind of will you select will depend on your particular circumstances, preferences, and applicable laws. Whether you choose a basic will for basic asset distribution, a living will to handle healthcare decisions, or a more formal testamentary will prepared with legal assistance, it is crucial to give your final wishes due consideration and to ensure that the appropriate paperwork is prepared. To make sure that your will complies with all applicable laws and to find the best kind for your purposes, it’s best to speak with an estate planning lawyer with experience. You can give yourself and your loved ones peace of mind in the future by being proactive in organizing your estate.

We can draft a will for your needs or take a look at our comprehensive estate plan package.

2024 California Law Update on the Required Method of Amending Your Trust

In our October 2022 newsletter, we shared two cases where the law was unclear on the legally required method of amending your trust. There were two cases in the California appeals court system that came to different conclusions. A few others have entered the fray since and added further confusion to the matter. First, a quick recap.

The California Supreme Court took on the appeal and has finally decided to settle this ambiguity in the law. In 2022, it was well settled law that one can modify their trust in any way they choose by including instructions in the terms of their trust. Meaning, if you say my trust may be amended through “X” process, this is the process that will be legally enforced by the court.

There is also statutory law that “fills in the gaps” of your trust should the language not explicitly define how the trust can be amended.  This law allows for your trust to be amended according to the process the legislature defined.

The problem is, which process controls if there is a conflict or an ambiguity, or if you did not fully adhere to the method indicated in your trust, or if you chose to follow the statutory method instead?

Now, in 2024, we finally have an answer. The court established that a trust can be changed using the procedures outlined in Probate Code §15401, which typically involve revocation (cancellation) of the trust, unless the trust document specifically outlines a different method for making changes and clearly states that it’s the only way changes can be made, or if it explicitly says that revocation procedures cannot be used for making changes.

If you would like to make changes to your trust or have questions regarding the process, don’t hesitate to reach out.

One of the most difficult parts of life is losing a loved one. It’s never easy to say goodbye, regardless of how prepared we think we are. The days and weeks that follow the death of a loved one can be unbearably painful and everyone grieves differently.

Having a list of what to do when a loved one passes away can be helpful. We created this guide to help you navigate this challenging time.

What to do when someone dies

There are a few things you should be ready to do if you are in charge of a deceased loved one’s affairs. Each of the processes below may vary slightly depending on the circumstances but the general process is the same. If you are a successor trustee, you have the responsibility and authority to conduct business on behalf of the trust.

1. Notify family members and friends.

Contact close family members and friends to inform them of the loss and share any essential details.

2. Make arrangements for children and pets.

Ensure the well-being of dependents by arranging for their care and support. Arrange for the care of any pets left behind, either by family or through appropriate services.

3. Give yourself time to grieve.

Allow yourself the necessary time and space to process and cope with the emotional impact of the loss. Seek support from friends, family, or a counselor. You do not need to immediately jump into legal proceedings.

4. Stop benefits and do not cash any benefit checks that arrive after the date of death. Return any benefits received after the date of death.
   1. Social Security Administration
   2. Veterans Administration (Note: Veterans may be entitled to burial and memorial benefits.)
5. Remove valuables from the home and store them in a secure, insured location.
6. Obtain death certificates.

Request ten original, certified copies of the death certificate. These certificates will be required for various legal and administrative purposes.

7. Call the insurance company to confirm that the home is insured if it is vacant.
   1. Fire insurance
   2. Flood insurance
   3. Homeowner’s insurance
8. Consider changing the locks on the home and installing cameras to monitor it.
9. Cancel credit cards and charge accounts. Cancel all subscriptions and monthly service agreements. Ask for a refund, if applicable.
10. Secure assets and carry out other related tasks.

Identify and secure important documents, including wills, financial records, and insurance policies. Notify relevant institutions, such as banks, insurance companies, and government agencies.

11. Make arrangements for funeral plans.

Plan the funeral or memorial service; consider your loved ones wishes and cultural or religious practices.

12. Carry out your loved ones wishes.

Execute any specific requests or wishes that you know of, if they were documented.

13. Legal Steps When a Parent Dies with an Estate Plan
    1. Do not remove contents from a safe-deposit box owned by the Trust unless you are the successor Trustee; otherwise, the contents must be inventoried in the presence of a bank officer before removal.
    2. Determine the immediate cash needs of each beneficiary and the immediate expenses that must be paid. Identify accounts with cash you can access.
    3. Gather the decedent’s personal records, including checkbooks, bank statements, cancelled checks, and at least three years of income tax returns.
    4. Contact individuals who owe money to the decedent and arrange for collection.
    5. Gather all life insurance policies, including those obtained through alumni associations, travel clubs, credit card companies, trade associations, etc.
    6. Terminate employment of domestic help, security guards, or any other assistants the decedent, a dependent, or a beneficiary no longer need.
    7. Hire domestic help, security guards, or any other assistants a dependent or beneficiary now needs.
    8. Consult with an attorney to understand and execute the legal steps outlined in the estate plan. An estate planning attorney will guide you through the process and handle legal proceedings. They will address the distribution of assets, ensure that your loved ones wishes are followed and help answer any questions you may have about the process or the estate plan itself.
14. Legal Steps When a Parent Dies Without an Estate Plan

Passing without an estate plan will most likely involve probate court proceedings and adhering to intestacy laws for the distribution of assets. Probate can be a long legal process, best handled by an attorney.

Losing a parent is a challenging time. An estate planning and probate attorney can help make this time just a little bit easier. Reach out to the Filippi Law Firm in California to facilitate your life during these trying times.

Filippi Law Firm, P.C., provides legal services in estate planning, probate, trust administration, and trust litigation in the greater Sacramento area and Placer County, with a focus in Rocklin, Roseville, Lincoln, and Granite Bay. Give us a call at (916) 333-7910 or fill out the contact form to get in touch with our office. Consultations are free, and they can be done over the phone, via Zoom, or in person at our office in Rocklin.