If you’ve been named as a trustee, you’re now responsible for managing and distributing someone’s trust according to California law. The process can involve complex steps, including collecting assets, notifying beneficiaries, paying debts and taxes, and ensuring compliance with the trust’s terms. Knowing what to do and when to do it is key to avoiding liability and protecting beneficiaries’ interests.
At OC Trial Group, APC, we help trustees throughout Orange County fulfill their legal obligations with precision and confidence. Our team ensures every step is handled correctly, from the first notice to the final distribution.
Why Choose OC Trial Group
Working with an experienced legal team makes the trust administration process smoother and more compliant with state law.
You can rely on us because we offer:
- Extensive experience in California trust and probate matters
- Step-by-step legal guidance for every trustee duty
- Support for resolving disputes or unclear trust provisions
- Transparent communication and detailed recordkeeping assistance
- Representation that protects both trustees and beneficiaries
What Does a Trustee Do in California?
A trustee’s job begins as soon as they accept their appointment. You must follow the terms of the trust, act in good faith, and keep beneficiaries informed. Trustees have both legal and fiduciary duties under the California Probate Code.
Typical trustee responsibilities include:
- Managing and safeguarding trust assets
- Paying legitimate debts and taxes
- Communicating regularly with beneficiaries
- Keeping complete and accurate records
- Making timely distributions as directed by the trust
California Trust Administration Checklist
Step 1: Review the Trust Document
Start by reading the trust carefully. Identify the beneficiaries, specific instructions, and any co-trustees. You’ll need to understand your authority before taking action.
Step 2: Notify Beneficiaries and Heirs
Within 60 days of the trust becoming irrevocable, California law requires the trustee to send formal written notice to beneficiaries and heirs. This notice triggers important legal deadlines.
Step 3: Collect and Secure Assets
Gather all property owned by the trust, including bank accounts, investment portfolios, and real estate. Change ownership titles when needed and protect physical assets.
Step 4: Obtain a Tax ID and Open a Trust Account
A trust must have its own Employer Identification Number (EIN). All funds should flow through a separate trust bank account to ensure transparency.
Step 5: Pay Final Bills, Debts, and Taxes
You must identify and pay all valid debts and taxes before distributing any assets. This includes filing the decedent’s final income tax return and any required trust tax filings.
Step 6: Distribute Assets to Beneficiaries
Once obligations are satisfied, you can distribute the remaining assets according to the trust’s terms. Keep detailed records of each transfer or payment.
Step 7: Maintain Records and Provide Accountings
Trustees must keep beneficiaries “reasonably informed” under California Probate Code §16060–16064. Annual accountings or updates help prevent misunderstandings or claims of mismanagement.
How an Orange County Trust Lawyer Can Help
Trust administration can quickly become complex when legal, financial, and family issues intersect. Disagreements among beneficiaries, vague trust language, or tax complications often require careful legal guidance to resolve effectively.
At OC Trial Group, APC, we assist trustees with:
- Preparing and reviewing trust accountings
- Communicating with beneficiaries and financial institutions
- Handling disputes or petitions in probate court
- Ensuring compliance with California trust law
- Advising on tax and asset-transfer issues
We help trustees act confidently, stay compliant, and reduce the risk of litigation.
Protecting Yourself as a Trustee
A trustee’s duties carry significant legal responsibility. To protect yourself:
- Keep clear financial records
- Separate personal funds from trust assets
- Document all decisions and communications
- Seek professional legal advice before making distributions
With OC Trial Group, you have a partner who ensures every action aligns with your fiduciary obligations.
Need Help Managing a California Trust?
Whether you’re beginning the administration process or addressing disputes, our Orange County trust attorneys can help you fulfill your duties correctly. We’ll provide step-by-step guidance so you can manage assets, taxes, and distributions with confidence.
Contact OC Trial Group, APC today to schedule a consultation and get clear answers to your trust administration questions.
FAQ
How long does trust administration take in California?
Most trusts are settled within 12–18 months, but timing depends on asset complexity, tax filings, and any disputes.
What happens if a trustee doesn’t follow the trust’s terms?
Beneficiaries may file a court petition to remove the trustee or demand an accounting. The trustee could face personal liability for mismanagement.
Can a trustee be compensated for their work?
Yes. Trustees are entitled to reasonable compensation under California law, either as stated in the trust or determined by the court.