Being named a successor trustee is an honor and a real legal responsibility. After the person who created the trust passes away, the trustee steps into a role with specific duties under the California Probate Code. Here is the path, in plain English.
1. Notify the beneficiaries and heirs. California law requires the trustee to send a formal notice, under Probate Code section 16061.7, to beneficiaries and legal heirs. This starts the clock on their right to request a copy of the trust and to contest it.
2. Inventory and value the assets. The trustee identifies everything the trust holds, from real estate to accounts, and establishes date-of-death values, which also matters for tax basis.
3. Pay debts, expenses, and taxes. Legitimate debts, final expenses, and any taxes are paid before distributions. Getting the order and timing right protects the trustee personally.
4. Keep clear records and account to beneficiaries. Trustees owe beneficiaries an accounting. Careful records are the trustee's best protection against a later dispute.
5. Distribute what remains. Once obligations are settled, the trustee distributes the assets according to the trust's terms.
Each step carries rules, and mistakes can create personal liability for the trustee. We guide trustees through the entire process so nothing important is missed. If you have just been named a trustee, the first conversation is free.
This article is general information, not legal advice, and does not create an attorney-client relationship. Estate and business law change and depend on your specific situation. Speak with Donald W. Flaig before acting.