The Trust Administration Process in California: A Complete Overview
If you're facing trust administration for the first time, the process can feel overwhelming. What steps are required? How long will it take? What are the legal obligations?
This guide provides a high-level overview of the entire California trust administration process from start to finish—so you understand the big picture before diving into the details.
What Is Trust Administration?
Trust administration is the process of managing and distributing a living trust's assets after the trust creator (grantor/settlor) dies. It's the trust equivalent of probate—but faster, cheaper, and private because it happens outside the court system.
The goal: Carry out the grantor's wishes by paying debts, handling taxes, and distributing assets to the people the grantor chose to receive them.
Trust Administration vs. Probate
| Factor | Trust Administration | Probate |
|---|---|---|
| Court involved? | No (usually) | Yes |
| Timeline | 3-12 months | 12-18+ months |
| Cost | $3,000-$15,000 typical | $25,000-$100,000+ |
| Privacy | Completely private | Public record |
| Court supervision | None | Required |
| Flexibility | Trustee-directed | Court-controlled |
Trust administration is generally simpler and more flexible because there's no judge looking over your shoulder at every step.
Who Is Involved?
The Successor Trustee
The person who takes over management of the trust after the grantor dies. They're responsible for the entire administration process.
Key responsibilities:
- Securing and managing assets
- Sending required notices
- Paying debts and taxes
- Distributing to beneficiaries
The Beneficiaries
The people entitled to receive trust assets. They have rights to:
- Receive notice of the trust
- Request information about the trust
- Receive accountings
- Receive their distributions
Professional Advisors
Most trust administrations involve:
- Attorney: Legal guidance and document preparation
- CPA/Accountant: Tax return preparation
- Appraiser: Asset valuations (if needed)
- Financial advisor: Investment management (if needed)
The Trust Administration Process: 7 Phases
Phase 1: Taking Control
When: Immediately after death Duration: 1-2 weeks
What happens:
The successor trustee steps into their role and takes control of trust assets. Unlike probate, there's no court appointment needed—authority begins automatically.
Key tasks:
- Locate and review the trust document
- Obtain death certificates (10-15 copies)
- Secure the home and valuables
- Notify key parties (banks, insurance, etc.)
- Begin identifying all trust assets
Critical point: The trustee has authority from day one, but should act carefully until they fully understand the trust's terms and assets.
Phase 2: Establishing Authority
When: Weeks 2-4 Duration: 2-3 weeks
What happens:
The trustee formalizes their authority and sets up administrative infrastructure.
Key tasks:
- Apply for trust EIN (tax ID number)
- Open trust bank account
- Prepare trustee certification
- Record affidavit of death (for real property)
- Notify financial institutions
- Establish record-keeping system
Critical point: Use the trust's EIN—not the deceased's Social Security number—for all trust transactions going forward.
Phase 3: Notice and Inventory
When: Month 1-2 Duration: 4-8 weeks
What happens:
The trustee sends legally required notices and creates a comprehensive inventory of everything the trust owns and owes.
Key tasks:
- Send 60-day notice to all beneficiaries and heirs (REQUIRED)
- Inventory all assets with values
- Inventory all debts and liabilities
- Obtain appraisals where needed
- Document date-of-death values (for tax purposes)
Critical point: The 60-day notice deadline is strict. Missing it can extend the trust contest period indefinitely.
Phase 4: Administration Period
When: Months 2-5 Duration: 3-4 months (minimum)
What happens:
The trustee manages trust assets, pays ongoing expenses, addresses creditors, and waits for the contest period to expire.
Key tasks:
- Manage real property (maintenance, insurance, taxes)
- Collect income (rent, dividends, interest)
- Pay legitimate debts
- Maintain insurance coverage
- Communicate with beneficiaries
- Wait for 120-day contest period to pass
Critical point: Don't rush to distribute assets. The 120-day contest period must expire first, and all debts and taxes must be addressed.
Phase 5: Taxes
When: Throughout administration, with specific deadlines Duration: Ongoing
What happens:
The trustee handles all tax obligations for both the deceased person and the trust.
Tax returns typically required:
| Return | What It Covers | Deadline |
|---|---|---|
| Final Form 1040/540 | Deceased's income (Jan 1 - death date) | April 15 following year |
| Form 1041/541 | Trust income after death | April 15 following year |
| Form 706 | Estate tax (if over $13.61 million) | 9 months from death |
Critical point: Tax mistakes can be costly. Most trustees work with a CPA for this phase.
Phase 6: Distribution
When: After contest period and debts/taxes settled Duration: 2-8 weeks
What happens:
The trustee distributes trust assets to beneficiaries according to the trust's terms.
Key tasks:
- Calculate each beneficiary's share
- Prepare transfer documents (deeds, assignments)
- Distribute cash to beneficiaries
- Transfer real estate
- Distribute investments
- Deliver personal property
- Obtain receipts from beneficiaries
Distribution methods by asset type:
| Asset | How It's Distributed |
|---|---|
| Cash | Check or wire transfer |
| Real estate | Trustee's deed recorded with county |
| Investments | Transfer to beneficiary's account |
| Vehicles | Title transfer at DMV |
| Personal property | Physical delivery |
Critical point: Get signed receipts from every beneficiary acknowledging what they received.
Phase 7: Closing
When: After all distributions complete Duration: 2-4 weeks
What happens:
The trustee wraps up all remaining tasks and formally closes the trust administration.
Key tasks:
- Prepare final accounting
- Provide accounting to beneficiaries
- File final trust tax returns
- Close trust bank accounts
- Obtain releases from beneficiaries (recommended)
- Store records securely
Critical point: Keep all records for at least 5-7 years in case questions arise later.
Timeline: How Long Does It Take?
Trust administration timelines vary based on complexity:
Simple Trust: 3-6 Months
- One or two beneficiaries
- No real estate (or simple transfer)
- Few accounts
- No disputes
- Cooperative beneficiaries
Moderate Trust: 6-12 Months
- Multiple beneficiaries
- Real estate to sell
- Multiple accounts
- Some tax complexity
- No significant disputes
Complex Trust: 12-18+ Months
- Many beneficiaries
- Multiple properties
- Business interests
- Tax complications
- Disputes or litigation
- Sub-trusts required
Key Deadlines to Remember
| Deadline | Task |
|---|---|
| Immediately | Secure assets |
| ASAP | Get death certificates |
| 60 days | Send statutory notice to beneficiaries/heirs |
| 120 days after notice | Contest period expires |
| April 15 | Deceased's final income tax return |
| April 15 | Trust income tax return |
| 9 months | Estate tax return (if required) |
Common Complications
Real Estate Sales
If the trust owns property that must be sold:
- Add 3-5 months to timeline
- Requires listing, selling, and closing
- Title issues may need resolution
- Capital gains implications
Business Interests
If the trust includes business ownership:
- Valuation required
- May need to coordinate with partners
- Operating agreements affect options
- Can significantly extend timeline
Family Disputes
If beneficiaries are in conflict:
- Everything takes longer
- May require mediation
- Could escalate to litigation
- Costs increase substantially
Tax Complications
If tax issues are complex:
- Estate tax returns take months
- Audits can delay closure
- Amended returns may be needed
- Professional help essential
What Can Go Wrong?
Missing the 60-day notice deadline: Contest period never starts; trust remains in limbo.
Distributing too early: If a claim arises later, trustee may be personally liable.
Poor record-keeping: Can't prove what happened; vulnerable to challenges.
Ignoring beneficiaries: Breeds suspicion; may trigger legal action.
Tax mistakes: Penalties, interest, and potential personal liability.
Self-dealing: Using trustee position for personal benefit is prohibited.
When Court Gets Involved
Most trust administrations never see a courtroom. But courts can get involved for:
- Trust contests (challenges to validity)
- Disputes between trustee and beneficiaries
- Requests to interpret unclear trust terms
- Trustee removal petitions
- Approval of trustee fees
- Modification of irrevocable trusts
If litigation occurs, the process becomes longer and more expensive.
Do You Need an Attorney?
Technically, no. California law doesn't require attorney involvement.
Practically, usually yes. Most trust administrations benefit from professional guidance:
- Ensures legal requirements are met
- Protects trustee from liability
- Handles complex documents
- Navigates tax issues
- Prevents costly mistakes
- Attorney fees come from trust assets
Consider DIY only if:
- Trust is extremely simple
- No real estate involved
- Only one or two beneficiaries
- Everyone gets along
- You have relevant experience
Understanding the Big Picture
Trust administration follows a logical progression:
- Take control → Secure assets and understand what you're working with
- Establish authority → Set up the infrastructure to act as trustee
- Notify and inventory → Tell required parties and document everything
- Administer → Manage assets, pay debts, wait for contest period
- Handle taxes → File all required returns
- Distribute → Give beneficiaries what they're entitled to
- Close → Wrap up and store records
Each phase builds on the previous one. Trying to skip steps or rush the process creates problems.
Need Guidance?
The Law Offices of Rozsa Gyene guides trustees through every phase of California trust administration. We help you understand the process, meet your deadlines, and fulfill your duties properly.
Call (818) 291-6217 for a consultation, or visit our contact page.
Serving Glendale, Burbank, Pasadena, and all of Los Angeles County.
This article provides a general overview of the trust administration process in California. Every trust is different. Consult an attorney for guidance specific to your situation.
Written by Rozsa Gyene, Esq.
California State Bar #208356 | 25+ Years Probate & Estate Experience
Last Updated: November 28, 2025