Riverside Trust Administration Attorney

California Trust Administration

Administration of a California Trust

A trust administration attorney helps a Successor Trustee carry out the terms of a trust after the Settlor’s incapacity or death.

A trust generally involves three roles: the Settlor, who creates and funds the trust; the Trustee, who manages the trust assets; and the Beneficiary, who is entitled to receive benefits from the trust. In a typical revocable living trust, the Settlor may initially serve as Trustee and may also be a Beneficiary.

When the Settlor becomes incapacitated or dies, a Successor Trustee may step in to manage and administer the trust. The trust document usually identifies one or more Successor Trustees and establishes an order of succession in case a named Trustee is unable or unwilling to serve.

Role of the Successor Trustee

Many Successor Trustees are family members or trusted friends rather than professional fiduciaries. Although they may accept the role out of a sense of responsibility to a loved one, serving as Trustee carries significant legal duties.

A Successor Trustee is a fiduciary and must act in accordance with the trust instrument and applicable California law. Among other duties, a Trustee may be required to act loyally and impartially, protect and preserve trust property, invest and manage assets prudently, keep appropriate records, provide required notices and information to beneficiaries, and account for trust activity.

After assuming office, the Successor Trustee typically begins by reviewing the trust and related estate-planning documents, identifying and securing trust assets, determining outstanding debts and expenses, and addressing any required notices or statutory deadlines.

Depending on the terms of the trust and the assets involved, the Trustee may need to retitle assets, manage or sell property, work with financial institutions and tax professionals, resolve creditor or beneficiary issues, and maintain appropriate reserves for taxes and expenses.

When the administration is ready to conclude, the Trustee distributes the remaining trust assets according to the terms of the trust.

Accurate recordkeeping is essential throughout the process. Trustees should maintain records of receipts, disbursements, asset values, expenses, and distributions so that they can provide beneficiaries with an appropriate accounting when required.

Guidance for Successor Trustees

Trust administration can involve far more than simply collecting assets and making distributions. Trustees must comply with fiduciary duties, statutory requirements, tax obligations, and the specific terms of the trust.

The Law Office of Maureen Lyons, PC assists Successor Trustees with each stage of the administration process, including interpreting trust provisions, satisfying notice requirements, addressing beneficiary issues, coordinating with financial and tax professionals, preparing accountings, and completing distributions.

If you have been named as a Successor Trustee and are unsure where to begin, we can help you understand your responsibilities and move the administration forward efficiently and appropriately.