If you have been named a successor trustee in your sibling’s trust, parent’s trust, or friend’s trust, you need to know that this is a serious task.
Generally, serving as a trustee during trust administration entails many crucial responsibilities. A San Diego estate planning attorney can help you understand these duties and perform them effectively through the following steps of trust administration.
- Collect and Read the Trust Document: First, you need to collect and review all the available trust documents, and determine if any documents have been amended or restated recently. Read the documents to understand the wishes of the grantor and the type and amount of assets contained within the trust. After collecting all the trust documents available, request the grantor’s death certificate and make several copies. The certificate can be obtained in the County where the grantor lived or the funeral home.
- Create an Inventory: The next step is to take custody of the trust assets. This involves taking the initial inventory of the assets, valuing, and securing them. It is important to prepare a list of assets to ensure the assets, bank accounts, and other investments are appropriately titled. You should also check for any benefits to the trust so they can be reviewed.
- Notify Beneficiaries and Creditors: Once confirmed as a successor trustee, you should notify the involved parties, including beneficiaries and creditors, of your new appointment. Provide them with your contact details and let the beneficiaries and heirs know they can get copies of the trust. At this point, it is important that you retain an estate planning attorney who can help you prepare the notices required by the California Probate Code.
- Pay Taxes, Debts, and Expenses: When the grantor dies, the trust becomes binding and an independent tax-paying establishment. As a trustee, you are required to apply for a new tax identification number for the trust. Part of your duties includes paying the approved taxes, final expenses, and unpaid debts owed by the grantor.
- Asset Administration: The final step of trust administration is to allocate the assets per the trust's provisions. Every trust has its unique asset administration criteria. While some trusts will split the assets immediately after administration, others will hold them for several years.
Get in Touch with a San Diego Estate Planning Attorney Today
If you have questions about fulfilling your responsibilities as a successor trustee in San Diego, California, the estate planning attorneys at Sole Law, APC, are ready to help. Call our office at (619) 369-9600 to schedule a consultation with our lead attorney, Sole Webb-Suchomel.