Successor Trustee Duties Checklist: Complete California Guide

You've become the successor trustee of a California living trust. Whether the trust creator has passed away or become incapacitated, you now have legal responsibilities to fulfill.

This comprehensive checklist will guide you through every step of trust administration.

PHASE 1: IMMEDIATE STEPS (Days 1-14)

Gather Essential Documents

☐ Locate the original trust document

☐ Find all trust amendments (if any)

☐ Obtain certified death certificates (order 10-15 copies)

☐ Locate the deceased's will (pour-over will)

☐ Find previous tax returns (last 3 years)

☐ Gather Social Security information

☐ Locate life insurance policies

☐ Find retirement account statements

☐ Gather bank and investment account statements

☐ Locate real estate deeds

☐ Find vehicle titles

☐ Gather business ownership documents

Secure Assets Immediately

☐ Secure the residence (change locks if needed)

☐ Secure vehicles

☐ Collect mail and watch for bills

☐ Locate and secure valuables (jewelry, art, collectibles)

☐ Secure important documents

☐ Notify home insurance company

☐ Continue paying essential bills (mortgage, utilities, insurance)

☐ Do NOT distribute any assets yet

Notify Key Parties

☐ Contact an estate planning attorney

☐ Contact a CPA or tax professional

☐ Notify the post office if needed

☐ Notify Social Security Administration

☐ Notify pension/retirement plan administrators

☐ Notify life insurance companies

☐ Notify employer (if deceased was employed)

PHASE 2: ESTABLISH YOUR AUTHORITY (Days 7-30)

Obtain Tax Identification Number

☐ Apply for trust EIN from IRS (IRS.gov or Form SS-4)

☐ Do NOT use the deceased's Social Security number going forward

Open Trust Bank Account

☐ Open bank account in trust name using EIN

☐ Deposit any checks payable to deceased or trust

☐ Transfer funds from deceased's accounts (as institutions allow)

Establish Your Trustee Authority

☐ Prepare trustee certification/affidavit of trust

☐ Provide death certificate and trust certification to financial institutions

☐ Retitle accounts into trust name (as successor trustee)

☐ Notify investment companies of trustee change

☐ Record affidavit of death of trustee (for real property)

PHASE 3: REQUIRED NOTICES (Days 1-60)

Send Statutory Notice to Beneficiaries and Heirs

DEADLINE: Within 60 days of death or becoming trustee

☐ Identify all trust beneficiaries

☐ Identify all legal heirs (even if not beneficiaries)

☐ Prepare Probate Code §16061.7 notice including:

• Trust name and date
• Trustee's name and contact information
• Statement that trust is now irrevocable
• Right to receive copy of trust terms
• 120-day deadline to contest trust

☐ Send notice via certified mail

☐ Keep copies of notices and mailing receipts

☐ Document the date each notice was sent

Other Required Notices

☐ Notify known creditors (recommended)

☐ Notify government agencies receiving benefits

PHASE 4: INVENTORY AND VALUATION (Days 14-60)

Create Complete Asset Inventory

Real Property:

☐ List all real estate owned by trust

☐ Obtain date-of-death appraisals

☐ Note any mortgages or liens

☐ Determine current rental income (if applicable)

Financial Accounts:

☐ List all bank accounts with balances

☐ List all investment/brokerage accounts

☐ List all retirement accounts (IRA, 401k, etc.)

☐ Document date-of-death values

Life Insurance:

☐ List all policies

☐ Determine beneficiaries (trust or individuals)

☐ File death claims

Personal Property:

☐ Inventory vehicles with values

☐ Inventory valuable personal property

☐ Obtain appraisals for significant items

☐ Document household contents

Business Interests:

☐ List any business ownership

☐ Obtain business valuations

☐ Identify business debts and obligations

Other Assets:

☐ Digital assets and accounts

☐ Intellectual property

☐ Money owed to deceased

☐ Tax refunds expected

Create Liability List

☐ Outstanding mortgages

☐ Credit card balances

☐ Medical bills

☐ Funeral expenses

☐ Outstanding loans

☐ Taxes owed

☐ Other debts

PHASE 5: ADMINISTRATION (Months 1-6)

Ongoing Asset Management

☐ Collect income (rents, dividends, interest)

☐ Pay ongoing expenses from trust account

☐ Maintain insurance coverage

☐ Make necessary repairs to property

☐ Manage investments prudently

☐ Keep all receipts and records

Handle Debts and Claims

☐ Review all debts for validity

☐ Pay legitimate debts from trust funds

☐ Negotiate settlements if appropriate

☐ Document all payments

Tax Obligations

☐ File deceased's final federal income tax return (Form 1040)

☐ File deceased's final California income tax return (Form 540)

☐ File trust income tax returns (Form 1041 federal, Form 541 California)

☐ Pay any taxes owed

☐ File estate tax return if required (estates over $13.61 million)

☐ Consider stepped-up basis for assets

Maintain Records

☐ Keep detailed records of all transactions

☐ Save all receipts and invoices

☐ Document time spent on administration

☐ Keep copies of all correspondence

☐ Maintain separate trust accounting

PHASE 6: DISTRIBUTION PREPARATION (Months 4-6)

Wait for Contest Period

☐ Wait until 120-day contest period expires

☐ Confirm no trust contests have been filed

☐ Resolve any disputes before distributing

Prepare for Distribution

☐ Confirm all debts are paid

☐ Confirm all taxes are filed and paid

☐ Calculate each beneficiary's share

☐ Determine how to divide specific items

☐ Prepare deeds for real property transfers

☐ Prepare assignment documents for other assets

Consider Sub-Trusts

☐ Determine if sub-trusts must be created (for minors, etc.)

☐ Prepare sub-trust documentation

☐ Fund sub-trusts appropriately

PHASE 7: DISTRIBUTION (Months 5-12)

Distribute Assets

☐ Prepare and record trustee's deeds for real property

☐ Transfer investment accounts to beneficiaries

☐ Distribute cash to beneficiaries

☐ Transfer vehicles (DMV title transfer)

☐ Deliver personal property items

☐ Distribute any remaining specific gifts

Document Distributions

☐ Obtain signed receipts from all beneficiaries

☐ Document what was distributed to whom

☐ Keep copies of all transfer documents

PHASE 8: CLOSING (Final Month)

Final Accounting

☐ Prepare final accounting showing:

• All assets at beginning
• All income received
• All expenses paid
• All distributions made
• Final balance (should be zero or near zero)

☐ Provide accounting to beneficiaries

☐ Obtain approval or releases if possible

Close the Trust

☐ File final trust tax returns

☐ Close trust bank accounts

☐ Distribute any remaining funds

☐ Prepare trust termination document (if required)

Record Retention

☐ Retain all records for at least 5 years

☐ Store records securely

☐ Inform beneficiaries where records are kept

KEY DEADLINES SUMMARY

Task	Deadline
Secure assets	Immediately
Send beneficiary notices	60 days from death/becoming trustee
Contest period ends	120 days from notice
Final income tax return	April 15 of following year
Trust tax returns	April 15 annually (or 65 days after trust year end)
Estate tax return (if required)	9 months from death

WHAT NOT TO DO

❌ Don't distribute assets before contest period expires

❌ Don't pay yourself before paying debts and taxes

❌ Don't mix trust funds with personal funds

❌ Don't ignore beneficiary requests for information

❌ Don't make major decisions without professional advice

❌ Don't throw away any documents

❌ Don't forget to send the 60-day notice

❌ Don't assume you know the trust terms—read carefully

WHEN TO GET PROFESSIONAL HELP

Hire an attorney if:

• Trust has real estate
• Trust has business interests
• There are multiple beneficiaries
• Any beneficiary is a minor or disabled
• There are potential disputes
• Trust is complex
• You're unsure about any step

Hire a CPA if:

• Estate has significant income
• There are capital gains issues
• Estate may owe estate taxes
• Tax situation is complex

Related Articles

Learn more about successor trustee duties:

• Common Trust Administration Mistakes California - Top mistakes new successor trustees make and how to avoid liability and beneficiary disputes.

• 60-Day Notice to Trust Beneficiaries California - One of your first duties as successor trustee is sending proper notice to all beneficiaries.

• Form 1041 Trust Tax Return Guide - Understanding your tax filing obligations and deadlines as successor trustee.

• When Trustees Fail to Communicate California - Communication requirements with beneficiaries and consequences of failing to keep beneficiaries informed.

• Trustee Removal California - When failure to fulfill duties leads to removal and how to protect yourself from removal petitions.

Need Help?

The Law Offices of Rozsa Gyene guides successor trustees through every step of California trust administration. We help you meet deadlines, fulfill your duties, and avoid costly mistakes.

Call (818) 291-6217 for a consultation, or visit our contact page.

Serving Glendale, Burbank, Pasadena, and all of Los Angeles County.

---

This checklist provides general guidance for California successor trustees. Every trust is different. Consult an attorney for advice specific to your situation.