Successor Trustee Duties California: Complete Checklist (2025)

You've just been named successor trustee of a loved one's trust. Now what? Where do you even start?

Being a successor trustee in California comes with serious legal responsibilities. You're a fiduciary - which means you have legal duties to beneficiaries and can be held personally liable for mistakes. But don't panic: this comprehensive checklist walks you through every step of California trust administration, from the first days after death through final distribution.

Whether you're handling a simple family trust or complex estate, this guide gives you the roadmap to fulfill your duties properly and avoid personal liability.

What Is a Successor Trustee in California?

A successor trustee is the person (or institution) named in a trust document to take over management when the original trustee dies or becomes incapacitated.

Your role:

• Manage trust assets
• Follow trust terms exactly
• Protect assets for beneficiaries
• Distribute according to trust provisions
• File tax returns
• Communicate with beneficiaries
• Act as fiduciary with legal duties

You are NOT:

• Free to do whatever you want
• Able to favor yourself or family
• Allowed to ignore beneficiaries
• Permitted to delay unreasonably
• Exempt from accounting requirements

Successor Trustee Legal Duties (Fiduciary Duties)

Under California Probate Code, you owe beneficiaries these fiduciary duties:

1. Duty of Loyalty (§ 16002)

• Act solely in beneficiaries' interests
• No self-dealing
• No conflicts of interest
• Cannot profit from position (except reasonable compensation)

2. Duty to Deal Impartially (§ 16003)

• Treat all beneficiaries fairly
• Cannot favor one beneficiary over another (unless trust allows)
• Balance interests of current vs. remainder beneficiaries

3. Duty of Care (§ 16040-16047)

• Administer trust with care, skill, prudence
• Standard: what would a prudent person do?
• Invest wisely
• Preserve assets
• Act reasonably and promptly

4. Duty to Inform and Account (§ 16060-16069)

• Keep beneficiaries reasonably informed
• Respond to reasonable requests
• Provide accountings
• Disclose material facts

5. Duty to Follow Trust Terms (§ 16000)

• Administer according to trust document
• Cannot change terms (unless court modifies)
• Must distribute as trust requires

Breach of these duties = Personal liability for losses, surcharge, removal, and payment of beneficiaries' attorney fees.

Successor Trustee Checklist: First Steps After Death

Immediate Actions (First 2 Weeks)

☐ Locate Original Trust Document

• Find the original signed trust
• Locate all amendments and restatements
• Find related documents (pour-over will, etc.)
• Make copies for your records

☐ Obtain Certified Death Certificates

• Order 10-15 certified copies
• Needed for: banks, title companies, IRS, insurance, accounts
• Order from county vital records or funeral home
• Cost: ~$25 each

☐ Secure Trust Property

• Take possession of real estate
• Change locks if necessary (especially if beneficiaries have access)
• Ensure adequate insurance
• Secure valuables
• Arrange for property maintenance
• Cancel utilities/services at deceased's residence (or transfer to trust name)

☐ Review Trust Document Thoroughly

• Read entire trust and all amendments
• Identify all beneficiaries
• Understand distribution provisions
• Note any special conditions or timelines
• Check compensation provisions for trustee
• Look for any restrictions on sales or distributions

☐ Notify Key Parties of Death

• Social Security Administration (1-800-772-1213)
• Employer/pension administrator
• Life insurance companies
• Banks and financial institutions
• Investment companies
• Credit card companies
• Utilities
• Subscription services

Month 1-2: Legal Requirements & Notifications

☐ Obtain Tax ID Number (EIN)

• Apply for Employer Identification Number for the trust
• File online at IRS.gov (Form SS-4) - takes 15 minutes
• FREE - don't pay services to do this
• Needed to open trust bank account and file tax returns

☐ Open Trust Estate Bank Account

• Open checking account in trust name
• Use format: "[Your Name], Trustee of [Trust Name] Trust"
• Provide bank with: EIN, death certificate, trust certification (not full trust)
• Deposit all trust income here
• Pay all trust expenses from this account
• NEVER commingle with your personal funds

☐ Send 60-Day Notice to Beneficiaries (CRITICAL!) This is the #1 most commonly missed requirement

Under California Probate Code § 16061.7, you MUST serve written notice to:

• All trust beneficiaries
• All heirs of deceased trustor (even if not in trust)
• Any prior beneficiaries whose interests terminated

Notice must include:

• Your name, address, phone as trustee
• Statement that you're serving as trustee
• Deceased's name and date of death
• Notice of right to request trust copy
• Information about 120-day contest period
• Physical address of administration

Deadline: Within 60 days after death OR after you accept role as trustee

Failure to send this notice:

• Extends beneficiaries' time to contest indefinitely
• Can lead to your removal as trustee
• Creates personal liability risk
• Courts take this very seriously

☐ Provide Trust Copies to Beneficiaries

• Any beneficiary who requests gets complete copy
• Must include all amendments
• Cannot charge fee
• Cannot refuse or delay
• Cannot redact or withhold portions

☐ Notify Creditors

• Not legally required (unlike probate)
• But good practice to notify known creditors
• Publish notice in newspaper (optional but recommended)
• Creates deadline for claims (120 days)

Months 2-4: Asset Management & Valuation

☐ Inventory All Trust Assets

Create comprehensive list including:

Real Property:

• Addresses
• Legal descriptions
• How titled (should be in trust name)
• Mortgage information

Bank Accounts:

• Institution names
• Account numbers
• Account types
• Balances as of date of death

Investment Accounts:

• Brokerage accounts
• Stocks, bonds, mutual funds
• Retirement accounts (IRA, 401k)
• Number of shares and values at death

Personal Property:

• Vehicles (with VIN numbers)
• Jewelry
• Art, collectibles
• Furniture, household goods
• Business interests
• Intellectual property

Life Insurance:

• Policy numbers
• Beneficiary designations
• Death benefit amounts

Debts:

• Mortgages
• Credit cards
• Personal loans
• Medical bills
• Utilities

☐ Obtain Date-of-Death Valuations

For ALL assets, get values as of date of death:

• Real estate: Professional appraisal ($300-800)
• Stocks/bonds: Trading price on death date
• Business interests: Business valuation (CPA or specialist)
• Personal property: Appraisal for valuable items
• Retirement accounts: Statement showing death-date balance

Why critical: Date-of-death values determine:

• Basis for capital gains tax purposes
• Estate tax calculations (if estate over $13.61M)
• Fair distribution among beneficiaries

☐ Retitle Assets Into Trust Name (If Needed)

Assets should already be in trust, but often some aren't:

• Real property: Record new deed showing trust ownership
• Bank accounts: Provide death certificate to transfer
• Investment accounts: Transfer to trust name
• Vehicles: Transfer title through DMV

☐ Manage Trust Assets Prudently

• Maintain property (repairs, landscaping, insurance)
• Review investments for diversification
• Don't let assets sit idle losing value
• Consider selling declining assets
• Collect rents if rental property
• Deposit all income into trust account

☐ Pay Trust Expenses and Debts

Pay promptly:

• Mortgage payments (don't let property go into foreclosure)
• Property taxes
• Insurance premiums
• Utilities
• Maintenance
• HOA fees
• Legitimate creditor claims

Pay from trust account and document everything.

Months 4-8: Tax Returns & Accounting

☐ File Deceased's Final Income Tax Return

• IRS Form 1040 for January 1 - date of death
• Due: April 15 of following year
• Shows income deceased earned before death
• Estate pays any tax owed from estate assets

☐ File Estate Tax Return (If Required)

• IRS Form 706 required if estate exceeds $13.61M (2024 exemption)
• Due: 9 months after death (can request extension)
• Complex - hire estate tax attorney/CPA
• California has NO estate tax (but federal may apply)

☐ File Trust Income Tax Returns

• IRS Form 1041 (Fiduciary Income Tax Return)
• Due: April 15 for calendar year trusts
• Reports income earned by trust after death
• Required if trust has $600+ income OR any taxable income
• May need to file estimated quarterly taxes

☐ File Final Property Tax Statement

• Notify county assessor of owner's death
• Prevent property tax reassessment if transferring to children (Prop 19)
• Pay property taxes when due

☐ Prepare Accounting

Even if not required by trust, prepare detailed accounting showing:

• All assets at death (with values)
• All income received
• All expenses paid
• All distributions made
• All gains/losses
• Current asset values

Format: Beginning balance + income - expenses - distributions = ending balance

Keep receipts for EVERYTHING. Beneficiaries can demand accounting and you must provide within 60 days.

Months 6-12: Distributions

☐ Review Distribution Provisions

• Understand who gets what
• Check for conditions (age requirements, milestones)
• Identify immediate vs. delayed distributions
• Note any continuing trusts for beneficiaries

☐ Determine Distribution Timing

Can distribute when:

• All debts and taxes paid
• Sufficient reserves maintained for unknown claims
• No disputes or litigation pending
• Trust terms allow (some require waiting periods)

Typical timeline: 6-18 months after death

☐ Obtain Tax Clearance (If Applicable)

• If estate tax return filed, wait for IRS closing letter
• Ensures no tax liability before distributing
• Protects you from personal liability

☐ Make Distributions

Options:

• In-kind distribution: Transfer actual assets (house, stocks)
• Cash distribution: Sell assets, distribute proceeds
• Combination: Some in-kind, some cash

Distribution methods:

• Real property: Record new deed to beneficiaries
• Cash: Checks from trust account
• Securities: Transfer to beneficiary accounts
• Personal property: Physical delivery with receipt

☐ Obtain Receipt and Release

Before distributing, get beneficiaries to sign:

• Receipt acknowledging distribution received
• Release of trustee from liability
• Agreement not to sue
• Approval of accounting

If beneficiary refuses to sign: You can still distribute, but document thoroughly. Consider petitioning court for approval.

☐ File Final Accounting

• Prepare final accounting showing all transactions
• Provide to all beneficiaries
• Keep for your records
• May need to file with court (depends on trust terms)

Final Steps: Closing Administration

☐ Pay Final Expenses

• Attorney fees
• Accounting fees
• Your trustee compensation (if claiming)
• Final tax preparation
• Court costs (if any)

☐ Close Trust Bank Account

• After all distributions complete
• All checks cleared
• Keep final statement for records

☐ Cancel Insurance Policies

• After property distributed
• Obtain proof of cancellation
• Claim refunds if applicable

☐ Notify Social Security/Pension

• Report final distributions
• Stop any ongoing benefits

☐ Retain Records

• Keep all trust administration records for at least 7 years
• Store: trust documents, accountings, receipts, tax returns, correspondence
• Beneficiaries have 3-4 years to challenge accounting

Timeline: How Long Does Trust Administration Take?

Typical timelines:

• Simple trust (liquid assets, no disputes): 6-9 months
• Average trust (house, stocks, standard assets): 9-18 months
• Complex trust (business, disputes, tax issues): 18-36 months

Minimum timeline: ~6 months (due to creditor claim period, tax filings)

Factors affecting timeline:

• Estate complexity
• Real estate sales needed
• Beneficiary disputes
• Tax issues
• Illiquid assets
• Court involvement

Common Successor Trustee Mistakes to Avoid

❌ Mistake 1: Not Sending 60-Day Notice This is the #1 violation. Extends beneficiaries' contest period indefinitely. Always send proper notice within 60 days.

❌ Mistake 2: Commingling Funds NEVER mix trust money with your personal money. Maintain separate trust account for everything.

❌ Mistake 3: Favoring Yourself or Family If you're also a beneficiary, you cannot favor yourself. Treat all beneficiaries equally unless trust says otherwise.

❌ Mistake 4: Ignoring Beneficiary Requests Beneficiaries have legal rights. Respond promptly to requests for information, copies of trust, accountings.

❌ Mistake 5: Delaying Unreasonably "I'm busy" is not valid excuse. If you can't fulfill duties promptly, resign and let someone else serve.

❌ Mistake 6: Not Keeping Records Document EVERYTHING. Save every receipt, statement, communication. You'll need it for accounting and to defend yourself if challenged.

❌ Mistake 7: Making Distributions Too Early Wait until debts/taxes paid and claim period expires. Distributing too early creates personal liability if money needed later.

❌ Mistake 8: Not Getting Professional Help 90% of non-lawyer trustees make mistakes. Hire an attorney - it's worth it for asset protection and liability protection.

❌ Mistake 9: Using Trust Assets Personally Cannot live in trust house rent-free, drive trust car, or use trust funds for personal benefit. Self-dealing = breach of duty.

❌ Mistake 10: Not Maintaining Property Letting property deteriorate, missing insurance payments, or ignoring maintenance = breach of duty of care.

Do You Need an Attorney for Trust Administration?

Legally required? No. Practically essential? YES.

90% of trustees who "do it themselves" make costly mistakes:

• Miss 60-day notice requirement
• Fail to obtain proper valuations
• Don't maintain adequate records
• Make improper distributions
• Miss tax filing deadlines
• Expose themselves to personal liability

Attorney helps with:

• 60-day notices (proper format, service, documentation)
• Creditor notification and claim procedures
• Tax planning and returns
• Accounting preparation
• Beneficiary disputes
• Distribution planning
• Protecting YOU from liability

Cost: Typically 1-3% of estate value. Much less than defending against beneficiary lawsuit or paying surcharge for mistakes.

Trustee Compensation California

You're entitled to reasonable compensation under Probate Code § 15681.

Typical rates:

• Family trustees: Often serve without compensation (but entitled to it)
• Professional trustees: 1-1.5% of estate value OR $50-150/hour
• Corporate trustees: 1-2% of estate value annually

Factors affecting reasonableness:

• Time spent
• Complexity of estate
• Skill required
• Results achieved
• Customary fees in community

Must be "reasonable" - courts can reduce excessive fees.

Document your time even if not charging. Helps defend against beneficiary challenges.

When Can You Resign as Successor Trustee?

You CAN resign if:

• Job too overwhelming
• Conflicts with beneficiaries
• Don't have time
• Health issues
• Moving away

Proper resignation process:

1. Review trust for resignation provisions
2. Send written notice to all beneficiaries (30-60 days advance notice)
3. Prepare accounting through resignation date
4. Identify successor trustee (per trust terms)
5. Transfer all records and assets to new trustee
6. File resignation with court (if required)

Cannot resign to:

• Avoid liability for past breaches
• Escape accounting requirements
• Abandon duties midstream

Red Flags: When to Get Legal Help Immediately

Contact attorney if:

• Beneficiaries threatening to sue
• You're unsure about distribution provisions
• Estate over $2 million (increased liability)
• Business interests involved
• Estate tax return required (>$13.61M)
• Beneficiaries demanding removal
• Disputes among beneficiaries
• Claims against estate
• You're also a beneficiary (conflict of interest issues)
• Real property needs to be sold
• Complex assets (intellectual property, partnerships)

Successor Trustee Duties FAQ

Q: How long do I have to notify beneficiaries? A: 60 days after death or after accepting role as trustee. This is mandatory under Probate Code § 16061.7.

Q: Can I be paid as successor trustee? A: Yes, you're entitled to reasonable compensation even if you're a family member. Typically 1-1.5% of estate value or hourly rate.

Q: Do I need court approval to sell trust property? A: Usually NO (unlike probate). Trustee has authority to sell unless trust document restricts it. But must sell for fair market value.

Q: What if beneficiaries are fighting? A: You must follow trust terms regardless of family disputes. Consider petitioning court for instructions. Don't favor one side.

Q: Can I hire professionals and pay from trust? A: Yes - you can (and should) hire attorney, accountant, appraiser, etc. Pay from trust assets as administrative expenses.

Q: What if I make a mistake? A: Consult attorney immediately. Small mistakes may be fixable. Serious breaches can lead to surcharge (personal liability). Don't hide mistakes.

Q: How do I know what beneficiaries are entitled to? A: Read distribution provisions carefully. If unclear, get attorney to interpret. When in doubt, petition court for instructions.

Q: Can beneficiaries remove me? A: Yes, if you breach fiduciary duties. They must petition court and show cause (failure to account, self-dealing, mismanagement, etc.).

Conclusion: Successor Trustee Duties Checklist Summary

✓ First 2 weeks:

• Locate trust document
• Get death certificates (10-15)
• Secure property
• Review trust thoroughly

✓ Months 1-2:

• Get EIN for trust
• Open trust bank account
• SEND 60-DAY NOTICE (critical!)
• Provide trust copies to beneficiaries

✓ Months 2-4:

• Inventory all assets
• Get date-of-death valuations
• Retitle assets into trust
• Pay debts and expenses

✓ Months 4-8:

• File tax returns (1040, 1041, 706 if needed)
• Prepare accounting
• Manage assets prudently

✓ Months 6-12:

• Determine distribution timing
• Make distributions
• Get receipts/releases
• File final accounting

✓ Final steps:

• Pay final expenses
• Close trust account
• Retain records (7 years)

Get Professional Help - Successor Trustee Attorney

Serving as successor trustee is serious responsibility. California law holds you to high fiduciary standards, and mistakes can lead to personal liability.

Our Los Angeles County trust administration attorney has guided hundreds of successor trustees through the process, ensuring:

• All legal requirements met
• Proper 60-day notices sent
• Accountings correctly prepared
• Tax returns timely filed
• Distributions properly made
• YOU protected from liability

We offer:

• Flat-fee trust administration (predictable costs)
• Hourly consultation as needed
• Full-service administration
• Trustee representation in disputes
• Beneficiary communication
• Accounting preparation
• Tax return coordination

Free consultation: (818) 291-6217

Whether you need complete administration help or just guidance on specific issues, we make the process smooth and ensure you fulfill your duties properly.

Successor trustee help California - Don't navigate this alone. Call today to discuss your situation and get a clear roadmap for administering the trust.

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Attorney Rozsa Gyene (CA State Bar #208356) has helped 1,000+ successor trustees properly administer trusts in Los Angeles County. This guide reflects California law as of January 2025.