Trust Administration: When There is Real Property.

Last week I posted about the most important step in administering a Living Trust after a Settlor has passed away. I am going to start the last week of March about posting about the next step for trust administration where there are real property held in the Living Trust. This is part two of an occasional series on this important topic.

1. An Affidavit of Death of Trustee and Consent of Successor Trustee should be recorded against each real property held in the Living Trust. This Affidavit is recorded with a certified copy of the death certificate. When it is recorded, it changes the title of the property from the trustee (usually the settlor) who has died and into the names of the new trustee(s).

2. Along with this Affidavit, a Preliminary Change of Ownership Form must be completed and recorded at the same time.  This form essentially informs the county recorder why you are recording the Affidavit.

3. And if the Living Trust will transfer the ownership of the real property from parents to children or any other manner exempt from property tax reassessment then the appropriate exemption form should be filled out and mailed to the county assessor's office.

It's a little more complicated than just 1-2-3 as described above, but you get the general idea. The general idea that there's lot to do for trust administration. If you are currently administering a Living Trust, consider hiring an estate planning attorney to assist you through this process.