Trust Administration After Someone Dies

Living Trusts require administration after the death of a settlor (the person who created the trust).

Upon a person's death -- there are many steps that need to be taken in accordance to California laws to properly administer their Living Trust:

To start, California Probate Code Section 16061.7 requires notification by trustee to beneficiaries/heirs of the person who passed away as the first step.  See our blog post on this notice requirement.

California also requires a trustee to give notice of death to the Department of Health Services as it relates to Medi-Cal benefits. This notice allows the Department of Health Services to determine whether the decedent was receiving Medi-Cal benefits and if there is any right by the state for reimbursement.

Real property assets held in trust need to have titled cleared. An Affidavit of Death of Trustee is commonly filed along with other Trust Transfer Deeds to properly distribute the property as directed by the Living Trust.

Trust assets need to be appraised and otherwise handled.

And tax issues need to be considered and handled with the assistance of a qualified CPA or accountant experienced in estate matters.

And, lastly, it is prudent to wrap up the administration of a Living Trust with an agreement signed by the trustee and all of the beneficiaries to protect the parties.

This is a quick run down of the trust administration issues and is not meant to be all inclusive. Please consult with an attorney for specific advice regarding your trust administration matter.

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Estate Planning, Probate and Trusts involve complex areas of law. Individual circumstances must be considered before any advice can be given.  The general information above is not to be construed as legal advice, which can only be given after consideration of the unique facts of each matter. Please seek the advice or counsel of your attorney, financial advisor or CPA as it may be appropriate.

Comments

[Pam]

I'm wondering if you can answer a related question. My mother's home (paid off) is in a trust made out to all four of us kids. My mom recently passed away. I am wondering if there is a way for three of the siblings to sign over the deed to the fourth sibling? True, one of us could "buy" the home, but what we want to do is have one of us "own" it without having to do all the real estate closing costs and credit checks, etc. Is that possible if all four of us are in agreement? (only one of the siblings is asking for her financial share of the home...so we would outright "pay her off" with her having no further claims)

If you could advise or point us in the right direction, that'd be great.

Thanks!

[Larry Pine]

After doing my aunt's trust, I was told I would be billed for back taxes by the assessors office. The assessors office contacted me after I did the distribution. I could not find any time limit for this reassessment. Watch out! The notice was over a year after she died. Larry

[Lora VanLaningham]

My x-mother in law died leaving all assets by will to my son. Then my son died intestate. The attorney handling the whole thing removed money from my son's client trust account, allegedly for "safekeeping" from other relatives. He refuses to distribute it to me unless I sign an all-encompassing release of liability. I refused to do so, and he still has the money after over a year. I reported this to the State Bar, but you must know how worthless they are at acting inside of about 3 years. I know there is a petition to force distribution, but can't find it on any of the Judicial Council websites. I live in Oceanside, he lives/practices in Sacramento. Can you give me a document site to the Sac Co probate form for forced distribution? I'd really appreciate it.
Lora VanLaningham, Esq.