Trust Administration Checklist California: The Complete Guide

This comprehensive checklist covers every step of California trust administration from start to finish. Print it, check off items as you complete them, and use it to ensure nothing falls through the cracks.

PHASE 1: IMMEDIATE ACTIONS (Days 1-7)

Secure the Trust Document

☐ Locate original trust document

☐ Locate all trust amendments

☐ Locate any trust restatements

☐ Make copies for your records

☐ Store original in safe location

Obtain Death Certificates

☐ Order certified death certificates (10-15 copies minimum)

☐ Sources: funeral home, county registrar, California CDPH

☐ Keep track of how many you have remaining

Secure Trust Assets

☐ Secure residence (change locks if needed)

☐ Set alarm system

☐ Secure vehicles

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

☐ Collect mail daily

☐ Secure important documents

☐ Photograph condition of property and valuables

Emergency Notifications

☐ Notify home insurance company of death

☐ Notify auto insurance company

☐ Continue paying mortgage/rent

☐ Continue paying utilities

☐ Continue paying property taxes

☐ Continue paying insurance premiums

PHASE 2: ESTABLISH AUTHORITY (Days 7-30)

Confirm Your Role

☐ Read trust document thoroughly

☐ Confirm you are the named successor trustee

☐ Verify no conditions prevent you from serving

☐ Decide whether to accept the trusteeship

☐ Understand your powers and limitations

Obtain Tax ID Number

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

☐ Record EIN for future use: ________________

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

Prepare Authority Documents

☐ Prepare trustee certification/affidavit of trust

☐ Have certification notarized

☐ Make multiple copies of certification

Real Property Records

☐ Record Affidavit of Death of Trustee (for each property)

☐ Attach certified death certificate

☐ File with county recorder where property is located

☐ Counties with trust property:

• ☐ _______________________
• ☐ _______________________
• ☐ _______________________

Open Trust Bank Account

☐ Choose bank for trust administration

☐ Open checking account in trust name

☐ Account title: "[Trust Name], [Your Name], Trustee"

☐ Obtain checks and debit card

☐ Set up online banking

PHASE 3: REQUIRED NOTICES (Days 1-60)

Statutory Notice to Beneficiaries and Heirs

DEADLINE: 60 days from death or becoming trustee

☐ Identify ALL trust beneficiaries

☐ Identify ALL legal heirs (even if not beneficiaries)

☐ Obtain current addresses for all recipients

☐ Prepare Probate Code §16061.7 notice including:

• ☐ Trust name and date created
• ☐ Settlor's name and date of death
• ☐ Your name, address, and phone number
• ☐ Attorney's name and contact (if applicable)
• ☐ Statement that trust is now irrevocable
• ☐ Right to receive copy of trust terms
• ☐ 120-day contest period notice

☐ Send notices via certified mail, return receipt requested

☐ Keep copies of all notices sent

☐ Keep all certified mail receipts

☐ Record date each notice was mailed

Notices Sent:

Recipient	Address	Date Mailed	Receipt #

Other Notifications

☐ Notify known creditors (recommended)

☐ Social Security Administration

☐ Medicare/Medicaid

☐ Pension plan administrators

☐ Veterans Administration (if applicable)

☐ Employer (if recently employed)

PHASE 4: ASSET INVENTORY (Days 14-60)

Real Property

Property Address	Estimated Value	Mortgage Balance	Date of Death Value

☐ Obtain date-of-death appraisals for each property

☐ Order preliminary title reports

☐ Verify property is titled in trust name

☐ Note any liens or encumbrances

☐ Document rental income (if applicable)

☐ Document property condition

Bank Accounts

Institution	Account Type	Account #	Date of Death Balance

☐ Notify each bank of death

☐ Provide death certificate and trust certification

☐ Retitle accounts to successor trustee

☐ Transfer funds to trust administration account

Investment Accounts

Institution	Account Type	Account #	Date of Death Value

☐ Notify each institution of death

☐ Obtain date-of-death valuations

☐ Determine cost basis (for tax purposes)

☐ Document stepped-up basis values

Retirement Accounts

Institution	Account Type	Beneficiary	Date of Death Value

☐ Determine named beneficiaries (trust or individuals?)

☐ Notify custodians of death

☐ Understand distribution options and deadlines

☐ Coordinate with beneficiaries on distributions

Life Insurance

Company	Policy #	Beneficiary	Death Benefit

☐ File death claims with each company

☐ Determine beneficiaries (trust or individuals?)

☐ Track claim status

Vehicles

Year/Make/Model	VIN	Title Location	Estimated Value

☐ Locate titles

☐ Determine if titled in trust

☐ Obtain valuations (Kelley Blue Book)

☐ Maintain insurance until transferred or sold

Business Interests

Business Name	Type	Ownership %	Estimated Value

☐ Obtain business valuations

☐ Review operating agreements

☐ Understand succession provisions

☐ Coordinate with business partners

Personal Property

☐ Inventory valuable items (jewelry, art, antiques, collectibles)

☐ Photograph items

☐ Obtain appraisals for significant items

☐ Document location of items

☐ Secure valuable items

Digital Assets

☐ Email accounts

☐ Social media accounts

☐ Online banking

☐ Cryptocurrency

☐ Domain names/websites

☐ Cloud storage

Other Assets

☐ Money owed to deceased

☐ Pending tax refunds

☐ Lawsuits/settlements

☐ Royalties/residuals

☐ Intellectual property

☐ Safe deposit boxes

PHASE 5: LIABILITIES (Days 14-60)

Document All Debts

Creditor	Type	Amount Owed	Due Date

Categories of Debt

☐ Mortgages

☐ Home equity loans/lines of credit

☐ Credit cards

☐ Personal loans

☐ Auto loans

☐ Medical bills

☐ Funeral expenses

☐ Outstanding taxes

☐ Utility bills

☐ Other: _______________

Debt Review

☐ Verify each debt is valid

☐ Check for life insurance paying off debt

☐ Determine secured vs. unsecured debts

☐ Identify priority claims

☐ Consider negotiating settlements

PHASE 6: ONGOING ADMINISTRATION (Months 1-6)

Asset Management

☐ Collect all income (rent, dividends, interest)

☐ Deposit income to trust account

☐ Pay ongoing expenses from trust account

☐ Maintain adequate insurance

☐ Make necessary property repairs

☐ Manage investments prudently

☐ Keep all receipts

Record Keeping

☐ Maintain chronological transaction log

☐ Keep all bank statements

☐ Save all receipts and invoices

☐ Document all decisions made

☐ Keep copies of all correspondence

☐ Organize files by category

Communication

☐ Provide regular updates to beneficiaries

☐ Respond to beneficiary inquiries promptly

☐ Document all communications

☐ Send written updates quarterly (recommended)

PHASE 7: DEBTS AND TAXES (Months 2-6)

Pay Valid Debts

☐ Pay funeral/burial expenses

☐ Pay last illness medical bills

☐ Pay secured debts (mortgage, car loans)

☐ Pay priority unsecured debts

☐ Pay remaining valid debts

☐ Document all payments

Tax Returns Required

Deceased's Final Income Tax Returns:

☐ Federal Form 1040 (due April 15 of following year)

☐ California Form 540 (due April 15 of following year)

☐ Gather all income documents (W-2s, 1099s, etc.)

☐ Determine filing status

☐ Claim all eligible deductions

Trust Income Tax Returns:

☐ Federal Form 1041 (due April 15 or 65 days after fiscal year)

☐ California Form 541

☐ Report all trust income

☐ Deduct administration expenses

☐ Issue K-1s to beneficiaries

Estate Tax Return (if applicable):

☐ Federal Form 706 (if estate exceeds $13.61 million)

☐ Due 9 months from death (extension available)

☐ Portability election (for married couples)

Tax Deadlines

Return	Due Date	Filed Date	Extension?
Final 1040
Final 540
Form 1041
Form 541
Form 706

PHASE 8: PRE-DISTRIBUTION (Months 4-6)

Confirm Contest Period Expired

☐ Calculate 120-day contest period expiration

☐ Date notices were sent: _______________

☐ Contest period expires: _______________

☐ Confirm no trust contests filed

Verify Ready for Distribution

☐ All debts paid or reserved for

☐ All taxes filed or reserved for

☐ Sufficient funds for administration expenses

☐ No pending claims or disputes

☐ All assets valued and accounted for

Calculate Distributions

☐ Review trust distribution provisions

☐ Calculate each beneficiary's share

☐ Determine specific gifts

☐ Calculate residuary distributions

☐ Prepare distribution schedule

Prepare Distribution Documents

☐ Trustee's deeds for real property

☐ Assignment documents for investments

☐ Stock transfer documents

☐ Vehicle title transfers

☐ Personal property distribution list

PHASE 9: DISTRIBUTION (Months 5-12)

Distribute Specific Gifts

☐ Distribute specific cash bequests

☐ Transfer specific real property

☐ Distribute specific personal property items

☐ Transfer specific investment accounts

Distribute Residuary Estate

☐ Calculate residuary amounts

☐ Transfer cash to beneficiaries

☐ Transfer investment accounts

☐ Record real property deeds

☐ Transfer vehicles

☐ Deliver personal property

Documentation

☐ Obtain signed receipts from ALL beneficiaries

☐ Document what was distributed to whom

☐ Document date of each distribution

☐ Keep copies of all transfer documents

Distribution Log:

Beneficiary	Asset	Value	Date	Receipt Signed
				☐
				☐
				☐

PHASE 10: SUB-TRUSTS (If Required)

☐ Determine if sub-trusts are required by trust document

Common sub-trusts:

• ☐ Trusts for minor children
• ☐ Special needs trusts
• ☐ Bypass/credit shelter trusts
• ☐ Marital trusts (QTIP)
• ☐ Generation-skipping trusts

☐ Prepare sub-trust documentation

☐ Obtain separate EIN for each sub-trust

☐ Open separate accounts for each sub-trust

☐ Fund sub-trusts appropriately

☐ Prepare for ongoing administration

PHASE 11: FINAL ACCOUNTING (Final Month)

Prepare Final Accounting

☐ List all assets at start of administration

☐ List all income received

☐ List all gains/losses

☐ List all expenses paid

☐ List all distributions made

☐ List all assets remaining (should be zero or near zero)

Provide Accounting to Beneficiaries

☐ Send final accounting to all beneficiaries

☐ Allow time for review and questions

☐ Address any concerns

☐ Obtain approval or acknowledgment if possible

Obtain Releases (Recommended)

☐ Prepare release and receipt forms

☐ Have each beneficiary sign

☐ Releases protect you from future claims

PHASE 12: CLOSE THE TRUST (Final Month)

Final Tax Returns

☐ File final trust income tax return

☐ Pay any final taxes due

☐ Keep copies of all returns

Close Accounts

☐ Close trust bank account

☐ Close investment accounts

☐ Cancel insurance policies

☐ Cancel subscriptions and services

☐ Forward mail to your address

Record Retention

☐ Organize all records

☐ Store records securely

☐ Retain for at least 5 years (7 years recommended)

☐ Inform beneficiaries where records are stored

Trust Termination

☐ Prepare trust termination letter/document (if required)

☐ Document completion of administration

☐ File any required court documents (rare)

KEY DEADLINES SUMMARY

Deadline	Task
Immediately	Secure assets
7 days	Begin notifications
60 days	Send statutory beneficiary notices
120 days	Contest period expires (after notice)
4 months	Complete asset inventory
April 15	Deceased's final income tax returns
April 15	Trust income tax returns
9 months	Estate tax return (if required)
12 months	Target completion (simple trusts)
18 months	Target completion (complex trusts)

PROFESSIONAL CONTACTS

Role	Name	Phone	Email
Attorney
CPA
Financial Advisor
Real Estate Agent
Appraiser

NOTES

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Related Articles

Learn more about trust administration:

• Common Trust Administration Mistakes California - Avoid costly errors during trust administration including missing deadlines, improper distributions, and tax mistakes.

• Form 1041 Trust Tax Return Guide - Complete guide to filing trust income tax returns, reporting requirements, and trustee tax obligations.

• How to Distribute Trust Assets California - Step-by-step process for distributing assets to beneficiaries including real estate, investments, and personal property.

• Trustee Removal California: Process and Grounds - When beneficiaries can remove a trustee for failure to follow proper administration procedures.

• Trust Administration IRS Audit - How improper administration and tax reporting trigger IRS audits and how to avoid them.

Need Help?

The Law Offices of Rozsa Gyene guides trustees through every step of California trust administration.

Call (818) 291-6217 or visit our contact page.

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

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