Trust Administration

What is a Trust administration?

Trust administration refers to the process of carrying out the instructions of a deceased settlor. During their life, the settlor signed a revocable living trust and assigned their property to the trust estate. Upon the settlor’s death, the named successor trustee must gather such property and follow any instructions listed in the trust.

The successor trustee should take possession of all of the settlor’s property, including their house, vehicles, and personal property, and make sure such property is secured and insured. The trustee should also take steps to ensure that they have proper legal title to such property. Once all of the settlor’s property is located, the trustee should pay off any debts or expenses of the estate and then make any distributions required by the trust.

A trust administration attorney can help you prepare appropriate transfer documents, give legal notices, and advise about common practices for dealing with beneficiaries and creditors.

Call (510) 443-0443 for a no-cost consultation, or follow the link below.

What are the first things a successor trustee should do?

(1) Collect all of the trust property. Take the keys to any homes or buildings owned by the trust and make sure the property is locked and secure. Make sure that there is appropriate insurance covering the property. Find the settlor’s bank accounts and take control of them by delivering death certificates to the bank or financial institution.

(2) Send notice to beneficiaries. The beneficiaries of the trust and any of the settlor’s family who are not beneficiaries must receive a notice pursuant to Probate Code section 16061.7. That notice triggers a 120 day statute of limitations to challenge the validity of the trust.

(3) Give notice of death. Notice of the settlor’s death should normally be given to social security, the county where the decedent owned any real property, any banks or financial institutions where the settlor had accounts, and other organizations.

(4) Obtain an EIN and open a bank account. An EIN or tax-id is a unique number assigned to the trust by the IRS to identify the trust for tax purposes. It functions much like a social security number for the trust. You will need an EIN to open a bank account for the trust. Open an account and collect all of the trust’s liquid assets in one place as soon as possible.

How long does a trust administration take?

All trust administrations are unique and there is no specific timeline applicable to all situations, but most trust administrations can be completed over the course of several months.

The simplest trust administrations involving no real property, disputes between beneficiaries, or other procedural issues can be completed in weeks.

When real property, like a house or land, needs to be sold or partitioned, the process to accomplish either can delay the administration of the trust. Additionally, the trust calls for distributions to be made to beneficiaries over the course of many years, then the trust may have to remain in existence indefinitely to fulfill its terms.

How much does trust administration cost?

The Law Office of Ravi Patel provides trust administration services on a flat rate basis dependent on the size and complexity of the estate.