Trust Administration After Both Parents Die in California

Losing both parents is one of life's most profound experiences. If they had a joint living trust—as many married couples do—you may now be facing trust administration for the first time. The legal responsibilities can feel overwhelming when you're already grieving.

This guide explains what happens and what you need to do when the surviving parent passes away and you become responsible for their trust.

How Joint Trusts Work After Both Deaths

Most married couples create a single joint trust that operates in stages:

While Both Spouses Are Alive

Both parents serve as trustees and can change the trust anytime.

After the First Parent Dies

Typically, the surviving parent:

• Continues as sole trustee
• Has access to all trust assets
• May be able to modify their share of the trust
• The deceased spouse's share may become irrevocable

After the Second Parent Dies

The trust becomes fully irrevocable, and distribution to children/beneficiaries begins.

This is when full trust administration happens.

Understanding Your Role

If You're Named as Successor Trustee

You are now responsible for:

• Managing all trust assets
• Paying debts and final expenses
• Filing tax returns
• Distributing assets to beneficiaries

Your authority begins immediately upon your surviving parent's death. No court appointment is needed.

If You're Named as Beneficiary (But Not Trustee)

Someone else handles administration. Your rights include:

• Receiving notice about the trust
• Requesting trust information
• Receiving accountings
• Receiving your distribution

You're entitled to be kept informed, but you're not responsible for administration.

If You're Both Trustee and Beneficiary

This is common. You manage the trust AND receive assets from it. See our article on this topic for guidance on managing potential conflicts.

What's Different After Both Parents Die

The Trust Becomes Fully Irrevocable

After the first parent died, part of the trust may have remained revocable (changeable) by the surviving parent. Now, everything is permanent. No one can change the trust terms.

All Assets Are Now Subject to Distribution

Assets that the surviving parent used during their lifetime now pass to the ultimate beneficiaries—typically children and grandchildren.

Sub-Trusts May Be Created

Many trusts create separate sub-trusts after both parents die:

• Children's trusts (for minor or young adult children)
• Special needs trusts (for disabled beneficiaries)
• Grandchildren's trusts
• Generation-skipping trusts

Review your parents' trust carefully to see if sub-trusts are required.

Different Tax Treatment

After both parents die:

• The full trust may now owe income tax on accumulated income
• Estate tax may apply if the combined estate exceeds $13.61 million
• Stepped-up basis applies to assets again (for the surviving parent's share)

Step-by-Step: What to Do Now

Week 1: Immediate Steps

1. Find the Trust Document

Locate:

• Original trust
• All amendments
• Any restatements

Where to look:

• Parents' home (safe, filing cabinet)
• Safe deposit box
• Attorney who prepared the trust
• Your copies (if you have them)

2. Obtain Death Certificates

Order 10-15 certified copies of your surviving parent's death certificate.

3. Secure Assets

• Secure the home
• Collect mail
• Protect valuables
• Don't let anyone take anything yet

4. Read the Trust Carefully

Understand:

• Who receives what
• Are there conditions on distributions?
• Are sub-trusts required?
• Who are the successor trustees if you can't serve?

Weeks 2-4: Establish Authority

5. Get an EIN

Apply for a tax ID number for the trust at IRS.gov.

6. Open a Trust Bank Account

Open a checking account for trust administration.

7. Notify Financial Institutions

Contact banks, investment companies, and insurance companies about the death.

8. Record Property Documents

If the trust owns real estate, record an affidavit of death with the county recorder.

Month 1-2: Required Notices

9. Send the 60-Day Notice

Within 60 days, send written notice to:

• All beneficiaries
• All legal heirs (even if not beneficiaries)

This notice starts the 120-day contest period.

10. Create Asset Inventory

List everything the trust owns with date-of-death values:

• Real estate
• Bank accounts
• Investments
• Retirement accounts
• Personal property
• Vehicles

Months 2-6: Administration

11. Manage Trust Assets

• Continue paying mortgage, taxes, insurance
• Collect any income
• Maintain the property

12. Pay Legitimate Debts

• Funeral expenses
• Medical bills
• Credit cards
• Other obligations

13. Wait for Contest Period

The 120-day period must expire before final distributions.

Months 4-8: Taxes and Distribution

14. Handle Tax Returns

File:

• Surviving parent's final income tax return
• Trust income tax return

15. Distribute to Beneficiaries

After the contest period expires and taxes/debts are paid:

• Transfer real estate
• Distribute cash
• Transfer investments
• Deliver personal property

16. Create Sub-Trusts (If Required)

If the trust requires creating separate trusts for minors or others, fund and establish those trusts.

Final Steps: Close Administration

17. Prepare Final Accounting

Document everything that happened during administration.

18. Get Receipts from Beneficiaries

Have each beneficiary sign acknowledging what they received.

19. File Final Tax Returns

File the trust's final income tax return.

20. Retain Records

Keep all records for at least 5-7 years.

Special Situations

If Your Parents Lived in Different States

If parents owned property in multiple states:

• The trust should cover all properties
• You may need to work with attorneys in other states
• Recording requirements vary by state
• Tax rules may differ

If the Trust Wasn't Fully Funded

Sometimes parents don't transfer all assets to the trust. Assets outside the trust may require:

• Small estate procedures
• Probate
• Beneficiary designations

If There Are Minor Children (Your Siblings)

If you have minor siblings who are beneficiaries:

• Their shares likely stay in trust until they reach a specified age
• You may be trustee of their sub-trusts
• You have ongoing management duties
• Annual accountings may be required

If a Beneficiary Has Special Needs

If a sibling has disabilities and receives government benefits:

• Their share likely goes to a special needs trust
• Distributions must not disqualify them from benefits
• Special rules apply
• Consider consulting a special needs attorney

If There Are Family Conflicts

If siblings don't get along:

• Document everything meticulously
• Communicate in writing
• Consider using a professional trustee
• Mediation may help
• An attorney can provide buffer and guidance

Emotional Considerations

Administering your parents' trust while grieving is emotionally exhausting.

Give Yourself Grace

• You don't have to do everything immediately
• It's okay to ask for help
• Taking care of yourself is important

Communicate with Siblings

• Keep everyone informed
• Don't make major decisions alone
• Address concerns before they become conflicts

Manage Expectations

• Administration takes time (6-12 months typically)
• Not everything will go smoothly
• Some frustration is normal

Seek Support

• Lean on family and friends
• Consider grief counseling
• Professional help (attorney, CPA) reduces stress

The Final Gift

Administering your parents' trust is, in a way, a final act of love. You're honoring their wishes and ensuring their legacy passes to the people they chose.

It's hard work during an already difficult time. But completing this process properly honors everything your parents built and planned for.

Get Professional Help

You don't have to navigate this alone. The Law Offices of Rozsa Gyene helps families through trust administration after the loss of their parents—with compassion, expertise, and attention to detail.

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

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

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This article provides general information about trust administration after both parents die. Every trust and family situation is different. Consult an attorney for guidance specific to your circumstances.