What Happens After the Trust Grantor Dies in California?

Someone you loved has passed away. They had a living trust, and now you're trying to understand what comes next. The grief is overwhelming, and the legal responsibilities feel daunting.

This guide walks you through what happens in the weeks and months following a trust grantor's death in California.

The Moment of Death: What Changes

When the person who created the trust (called the grantor, settlor, or trustor) dies, several things happen automatically:

The Trust Becomes Irrevocable

While alive, the grantor could change or revoke the trust anytime. Upon death, the trust becomes permanent—its terms are locked in and cannot be changed.

The Successor Trustee Takes Over

The person named as successor trustee now has full authority to manage and distribute trust assets. No court appointment is needed—authority begins immediately.

Trust Administration Begins

The process of settling the trust—paying debts, filing taxes, and distributing assets to beneficiaries—officially starts.

The First Week: Immediate Priorities

Day 1-2: Secure Everything

Before worrying about legal steps, focus on protecting assets:

The home:

• Lock all doors and windows
• Consider changing locks
• Don't leave it unattended for long periods
• Notify a trusted neighbor

Valuables:

• Secure jewelry, cash, and collectibles
• Don't let anyone "borrow" items
• Consider moving high-value items to a safe location

Mail:

• Collect daily
• Watch for bills, legal notices, and financial statements

Vehicles:

• Secure all cars
• Locate keys and titles

Day 2-3: Find the Trust

The trust document is your roadmap. Without it, you can't proceed.

Where to look:

• Home safe or filing cabinet
• Safe deposit box
• Attorney who prepared the trust
• Family members who might have copies

What you need:

• Original trust document
• ALL amendments (First Amendment, Second Amendment, etc.)
• Any restatement

Day 3-5: Order Death Certificates

You'll need certified death certificates for almost everything—banks, insurance companies, government agencies all require originals.

Order 10-15 copies from:

• Funeral home (easiest)
• County Registrar's office
• California Department of Public Health

Why so many? Each institution needs its own copy, and running out causes delays.

Day 5-7: Identify the Successor Trustee

Read the trust to confirm who should be managing things.

Look for language like: "Upon my death, my daughter Jane Smith shall serve as Successor Trustee."

If you're the successor trustee: You have authority to act now.

If you're not: Contact the named successor trustee to ensure they're aware and willing to serve.

Weeks 2-4: Establishing Authority

Get a Tax ID Number (EIN)

The trust now needs its own tax identification number. You cannot continue using the deceased's Social Security number.

How: Apply online at IRS.gov (takes about 10 minutes) or mail Form SS-4.

Open a Trust Bank Account

Open a new checking account titled in the trust's name:

Example: "Smith Family Trust dated January 15, 2015, Jane Smith, Trustee"

You'll need:

• Trust document (or certification)
• Death certificate
• Your ID
• Trust's EIN

Use this account for:

• All trust income
• All trust expenses
• Keeping trust funds separate from personal funds

Notify Financial Institutions

Contact every bank, brokerage, and financial company where the deceased had accounts:

• Notify them of the death
• Provide death certificate and trust certification
• Ask what they need to recognize you as trustee
• Don't request withdrawals yet—just establish your authority

Record Real Property Documents

If the trust owns real estate, record an "Affidavit of Death of Trustee" with the county recorder's office where each property is located.

This puts the world on notice that the original trustee died and you're now in charge.

Month 1-2: Required Notices and Inventory

Send the 60-Day Notice (CRITICAL DEADLINE)

Within 60 days of the death (or becoming trustee), you MUST send written notice to:

• All beneficiaries named in the trust
• All legal heirs (people who would inherit if there were no trust)

The notice must include:

• Trust name and date
• Your contact information
• Statement that the trust is now irrevocable
• Their right to request trust terms
• The 120-day period to contest the trust

Send via certified mail and keep proof. Missing this deadline causes serious problems.

Create a Complete Asset Inventory

List everything the trust owns:

Asset Type	Examples
Real estate	Home, rental property, vacant land
Bank accounts	Checking, savings, CDs
Investments	Stocks, bonds, mutual funds
Retirement accounts	IRAs, 401(k)s (check beneficiary designations)
Life insurance	Check if trust or individuals are beneficiaries
Vehicles	Cars, boats, RVs
Personal property	Jewelry, art, collectibles, furniture
Business interests	Partnership interests, LLC membership

Get date-of-death values for everything—this establishes the "stepped-up basis" for tax purposes.

Inventory Debts

List all money the deceased owed:

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

Don't pay debts yet (except essentials like mortgage and utilities). You'll address them systematically later.

Months 2-4: Administration and Waiting

The 120-Day Contest Period

After you send the required notices, beneficiaries and heirs have 120 days to contest the trust.

During this period:

• Don't make final distributions to beneficiaries
• You can make preliminary distributions if necessary, but it's risky
• Continue managing assets and paying necessary expenses

Why wait? If someone successfully contests the trust after you've distributed assets, you may be personally liable to recover them.

Manage Assets Prudently

While waiting, you must manage trust property responsibly:

Do:

• Maintain insurance coverage
• Pay property taxes
• Make necessary repairs
• Collect rent (if applicable)
• Manage investments reasonably

Don't:

• Make speculative investments
• Let property deteriorate
• Mix trust funds with personal funds
• Make major decisions without considering beneficiary interests

Address Creditor Claims

• Review all debts for validity
• Negotiate settlements if appropriate
• Pay legitimate debts from trust funds
• Document all payments

Communicate with Beneficiaries

Keep beneficiaries informed:

• What you're doing and why
• Expected timeline
• Any issues that arise

Silence breeds suspicion. Over-communicate rather than under-communicate.

Months 4-6: Taxes and Preparing for Distribution

File Required Tax Returns

Deceased's Final Income Tax Returns:

• Federal Form 1040
• California Form 540
• Due: April 15 of the year following death
• Report income from January 1 through date of death

Trust Income Tax Returns:

• Federal Form 1041
• California Form 541
• Report trust income after date of death
• Issue K-1s to beneficiaries for distributions

Estate Tax Return (rare):

• Federal Form 706
• Only if estate exceeds $13.61 million
• Due 9 months from death

Confirm Contest Period Expired

Calculate when 120 days from your notices have passed. Once this deadline passes without a contest, you can proceed with confidence.

Prepare Distribution Documents

Start preparing the paperwork for distributions:

• Trustee's deeds for real property
• Investment account transfer forms
• Vehicle title transfers
• Distribution schedule showing each beneficiary's share

Months 5-12: Distribution

When You Can Distribute

Distribute after:

• 120-day contest period expires
• All debts are paid
• All taxes are filed (or funds reserved)
• No pending disputes

How Assets Are Distributed

Real estate:

• Prepare and sign trustee's deed
• Record with county recorder
• Provide title insurance (if selling)

Cash and bank accounts:

• Write checks or wire funds
• Close accounts after final distributions

Investment accounts:

• Transfer to beneficiary accounts
• Provide cost basis documentation

Vehicles:

• Sign over title
• DMV transfer process

Personal property:

• Physical delivery
• Consider fair division if multiple beneficiaries

Get Receipts

Have each beneficiary sign a receipt acknowledging what they received. This protects you from later claims.

Final Steps: Closing the Trust

Prepare Final Accounting

Create a report showing:

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

Provide this to all beneficiaries.

Close Accounts

• Close trust bank account
• Close any remaining investment accounts
• Cancel insurance policies
• Cancel subscriptions

Retain Records

Keep all records for at least 5 years (7 is safer):

• Trust documents
• Bank statements
• Tax returns
• Correspondence
• Receipts and invoices

Store securely and tell beneficiaries where records are located.

Timeline Summary

Timeframe	What Happens
Day 1	Trust becomes irrevocable; successor trustee has authority
Week 1	Secure assets, find trust, order death certificates
Week 2-4	Get EIN, open trust account, notify institutions
Day 60	DEADLINE: Send notices to beneficiaries/heirs
Months 1-4	Inventory assets, manage property, pay debts
Day 120+	Contest period expires (after notices sent)
Months 4-6	File tax returns, prepare for distribution
Months 6-12	Distribute assets, close trust

You Don't Have to Do This Alone

Trust administration after losing someone you love is overwhelming. You're grieving AND handling complex legal responsibilities.

The Law Offices of Rozsa Gyene guides families through California trust administration with compassion and expertise. We help you meet deadlines, avoid mistakes, and honor your loved one's wishes.

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 what happens after a trust grantor dies in California. Every trust is different. Consult an attorney for guidance specific to your situation.