If someone passes away with a living trust, California law requires that the successor trustee take over right away. There is a specific legal process for the first 120 days of the new trustee’s job. There are mandatory notices, valuation of assets, fiduciary duties, and much more. California law sets forth specific responsibilities and guidelines the successor trustee has to follow.
At Filippi Law Firm, P.C., our California estate law attorneys are ready to help you comply with your requirements as the successor trustee. The process can seem daunting without someone to assist you through the legal process. We’re here to help and ensure you comply with all of your legal obligations.
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The First 120 Days: What Successor Trustees Must Do
California’s trust‑administration framework is built around notice, information, and asset control. The first 120 days are critical because they establish the trustee’s authority, trigger beneficiary rights, and determine whether the trust can be administered privately or requires limited court involvement.
Below is a practical, statewide timeline.
Day 1–30: Establish Authority and Secure Assets
1. Obtain the Certification of Trust (Prob. Code §18100.5)
Banks, brokerages, and title companies typically require a Certification of Trust to recognize the successor trustee’s authority. This document allows the trustee to act without disclosing the full trust instrument.
2. Marshal and Secure Trust Assets
The trustee must locate accounts, real property, business interests, insurance, and personal property. If assets were never titled into the trust, the trustee may need a Heggstad petition under Probate Code §850 to confirm the trust’s ownership.
3. Notify Financial Institutions and Insurers
Institutions will freeze or retitle accounts once they receive the Certification of Trust and death certificate.
4. Begin Obtaining Date‑Of‑Death Values
Valuations are essential for tax basis, accounting, and future distributions.
Day 30–60: Serve Mandatory Notices and Inform Beneficiaries
5. Serve the Probate Code §16061.7 Notice
This “Notification by Trustee” must be served within 60 days of the trustee learning of the settlor’s death. It informs beneficiaries and heirs of:
- The trust’s existence
- The trustee’s identity
- Their right to request the trust document
- Their right to contest the trust
Once served, beneficiaries have 120 days to contest the trust or 60 days from receiving a copy, whichever is later.
6. Begin Fulfilling the Duty to Inform (Prob. Code §§16060–16064)
Trustees must keep beneficiaries reasonably informed, respond to requests for information, and provide material facts necessary for beneficiaries to protect their interests.
Day 60–120: Evaluate Debts, Prepare Accounting, and Plan Distributions
7. Review Creditor Claims and Outstanding Obligations
Trustees must identify mortgages, medical bills, taxes, and other liabilities. While trusts avoid probate, trustees still handle debts.
8. Prepare an Accounting (Prob. Code §§16060–16064)
Unless waived, trustees must provide an accounting showing:
- Assets on hand
- Receipts and disbursements
- Liabilities
- Proposed distributions
9. Determine Reasonable Trustee Compensation (Prob. Code §15681)
California allows trustees to receive “reasonable compensation,” which varies based on complexity, time, and expertise.
10. Plan Distributions and Retitling
Once debts are resolved and the contest period expires, trustees can begin transferring property, recording deeds, and closing accounts.
Cost Comparison: Trust Administration vs. Probate on a $750,000 Estate
California probate fees under Probate Code §10810 are statutory and based on gross estate value—not net value.
For a $750,000 estate in Placer County, statutory probate fees are:
- 4% of first $100,000 = $4,000
- 3% of next $100,000 = $3,000
- 2% of next $800,000 (only $550,000 used here) = $11,000
Total attorney fee: $18,000 Total personal representative fee: $18,000
Combined statutory fees: $36,000, plus court costs, publication fees, and potential bond.
By contrast, trust administration typically costs far less, avoids court supervision, and allows distributions months sooner.
Frequently Asked Questions
What is trust administration in California?
It is the private, non‑probate process a successor trustee follows to manage and distribute trust assets after the settlor’s death.
How long does a successor trustee have to serve the 16061.7 Notice?
The trustee must serve it within 60 days of learning of the settlor’s death.
How long do beneficiaries have to contest a trust?
Beneficiaries have 120 days after receiving the 16061.7 Notice, or 60 days after receiving the trust document, whichever is later.
What if an asset was never titled into the trust?
The trustee may file a Heggstad petition under Probate Code §850 to confirm the trust’s ownership.
Do trustees have to provide an accounting?
Yes, unless waived. Probate Code §§16060–16064 require trustees to keep beneficiaries informed and provide accountings.
How is trustee compensation determined?
Probate Code §15681 allows “reasonable compensation,” based on the complexity and time required.
Get Help With Trust Administration in California
Knowing how to take over a living trust can seem like a lot, but we are here to help.
Let the dedicated estate planning attorneys at Filippi Law Firm, P.C. review your case. Contact us today for a consultation.
