When someone passes away and leaves behind a trust, the process of managing and distributing the assets in that trust is referred to as trust administration. In California, this process can be detailed and time-sensitive, affecting both trustees and beneficiaries. If you’ve been named a trustee or are a beneficiary of a loved one’s trust, it’s helpful to understand how the process works and what steps are involved.
At OC Trial Group, APC, we work closely with trustees and beneficiaries in Orange County and throughout California to make sure trust administration is handled properly and fairly. Whether you’re overseeing the process or waiting for your share of the trust, we can help you stay informed and protect your rights.
Understanding the Basics of a Trust
A trust is a legal arrangement that allows a person (the trustor) to place their assets under the management of another person (the trustee) for the benefit of one or more people (the beneficiaries). Some trusts take effect during the trustor’s lifetime, while others become active after their death.
In California, the most common type is a revocable living trust, which becomes irrevocable upon the trustor’s death. Once that happens, the trustee is responsible for managing and distributing the trust’s assets according to its terms.
The Trustee’s First Steps After the Trust Becomes Irrevocable
When a trust becomes irrevocable, often after the death of the trustor, the trustee must act promptly and carefully. Some of the initial steps include:
- Locating and reviewing the full trust document.
- Notifying all beneficiaries and legal heirs within 60 days, as required by California Probate Code.
- Gathering and securing all trust assets, including real estate, bank accounts, and personal property.
- Opening a separate trust bank account and applying for a federal tax ID (EIN).
These early actions help set the stage for a smooth administration process. Trustees have a legal obligation to act in the best interests of the beneficiaries and to follow the trust’s instructions carefully.
Legal and Financial Duties Trustees Must Fulfill
Trustees in California carry significant responsibilities. The trust may allow for some discretion, but the law imposes certain duties regardless of the trust’s language. These include:
- Keeping accurate records of all transactions.
- Providing a written accounting to beneficiaries, either annually or upon request.
- Paying any valid debts and final expenses before distributing assets.
- Filing state and federal tax returns on behalf of the trust and the decedent.
- Avoiding conflicts of interest or self-dealing.
While some trustees are comfortable handling these tasks on their own, many choose to work with an attorney or tax professional to make sure everything is done correctly.
What Beneficiaries Should Expect
Beneficiaries have the right to be kept informed and to receive their share of the trust in accordance with its terms. Here’s what you can typically expect:
- A written notice from the trustee, including a copy of the trust upon request.
- Updates on the status of the administration and the anticipated timeline for distribution.
- A detailed accounting of the trust’s income, expenses, and remaining assets.
- A fair and timely distribution, though delays may happen due to taxes, debts, or disagreements.
If something feels off—for example, if the trustee refuses to communicate or is withholding information—it’s worth speaking with an attorney.
Common Issues and How We Help Resolve Them
Trust administration doesn’t always go as planned. Sometimes there are disputes over how the trust should be interpreted. In other cases, beneficiaries may question the trustee’s actions or asset valuations. Common problems include:
- Delays in distribution
- Missing or undervalued assets
- Miscommunication between family members
- Suspected mismanagement
At OC Trial Group, APC, we represent both trustees and beneficiaries in navigating trust administration and resolving disputes. With extensive experience litigating complex trust and estate matters across California, we know where problems typically arise—and how to avoid them. Our deep litigation background allows us to proactively advise clients during trust administration to minimize conflict and reduce the risk of costly lawsuits. Whether you’re administering a trust or seeking to protect your beneficiary rights, we are committed to providing practical, results-oriented strategies that safeguard your interests and help avoid unnecessary litigation whenever possible.
When Legal Guidance Is Valuable
Even in straightforward cases, trust administration can feel overwhelming. Trustees often juggle family dynamics, financial decisions, and legal obligations simultaneously. Beneficiaries may be unsure of their rights or concerned about transparency.
We help by providing clear advice, answering questions, and stepping in when needed to prevent or resolve disputes. Whether you need occasional guidance or full legal representation, we’re here to support you every step of the way.
What Comes Next in the Trust Administration Process
Administering a trust in California takes clear communication and careful attention to the rules. When trustees and beneficiaries understand their roles early on, it’s easier to avoid confusion and keep the process on track.
If you’re involved in a trust administration and have questions or concerns, OC Trial Group, APC is here to help. Contact us to schedule a consultation and learn how we can support your role in the process.