California Trust Administration Attorneys
When a loved one dies, serving as the successor trustee can feel overwhelming. You may be responsible for identifying and valuing assets, communicating with beneficiaries, paying expenses and taxes, managing real estate or business interests, and ultimately distributing trust assets according to the terms of the trust.
Trust administration is the legal and financial process of carrying out those responsibilities after the death of a trust creator. Although a properly funded trust may help avoid probate, it does not eliminate the need for administration.
KJMLAW Partners helps trustees and beneficiaries navigate trust administration in California, with particular experience involving complex estates, tax considerations, real estate, closely held businesses, and international assets. Our attorneys work with trustees and other professional advisors to help ensure that the trust is administered properly, efficiently, and in accordance with the trust documents and applicable law.
What Is Trust Administration?
Trust administration is the process of managing and distributing the assets of a trust after the death of the person who created the trust. The successor trustee steps into the role previously held by the trust creator and assumes responsibility for carrying out the trust’s instructions.
Trust administration may involve:
- Identifying and securing trust and estate assets
- Determining the ownership and value of assets
- Providing required notices to beneficiaries and other interested parties
- Managing real estate, investment accounts, business interests, and other assets
- Satisfying valid debts, expenses, and taxes
- Addressing income, estate, gift, and other tax considerations
- Preparing or coordinating required tax filings
- Resolving title and ownership issues
- Accounting for trust assets and transactions
- Making distributions to beneficiaries
- Addressing disagreements or disputes that arise during administration
How KJMLAW Partners Helps Trustees With Trust Administration
Serving as a trustee carries significant legal and fiduciary responsibilities. A trustee must follow the terms of the trust while also complying with California law and acting in the interests of the beneficiaries.
KJMLAW Partners provides legal guidance throughout the administration process so trustees do not have to navigate these responsibilities alone.
Our trust administration services include:
Reviewing and Interpreting Trust Documents
We review the trust agreement and related estate planning documents to identify the trustee’s responsibilities, beneficiary rights, distribution provisions, and issues that may require particular attention.
Identifying and Valuing Trust Assets
A trustee needs to understand what assets are owned by the trust, how those assets are titled, and what they are worth. We assist with the legal issues involved in identifying, valuing, and transferring trust assets and coordinate with appraisers, accountants, financial advisors, and other professionals when appropriate.
Real Estate and Property Issues
Trusts frequently hold real estate, including residential properties, investment properties, and other significant real property interests. We help trustees address ownership, title, transfer, property tax, and distribution issues involving real estate.
Closely Held Businesses and Business Interests
When a trust owns an interest in a closely held business, trust administration can involve issues that go well beyond simply transferring an investment account. We help trustees address ownership, valuation, transfer, and succession issues involving business interests.
Tax Planning and Tax Compliance
Tax considerations can be an important part of trust administration, particularly for larger or more complex estates. Our attorneys assist with estate and gift tax matters and coordinate with tax professionals regarding income tax and other filing requirements.
We routinely handle estate tax return preparation and filing, including issues involving the federal estate tax exemption and portability following the death of a spouse.
International and Cross-Border Trust Administration
Trust administration can become significantly more complicated when a trustee, beneficiary, asset, or family member is located outside the United States.
KJMLAW Partner’s international estate and tax experience allows us to address issues involving U.S. assets owned by foreign individuals, beneficiaries living abroad, foreign trusts and entities, international tax considerations, and potential U.S. and foreign tax consequences.
Beneficiary and Trustee Issues
Trust administration requires trustees to balance competing interests while following the terms of the trust and applicable law. We help trustees understand their fiduciary responsibilities and communicate with beneficiaries regarding administration issues.
When disagreements arise, our attorneys can also advise clients regarding potential trust disputes and litigation.
Trust Administration for Complex and High-Value Estates
Not every trust administration is the same. A relatively straightforward estate may involve a home, bank accounts, and investment accounts. More complex estates may include:
- Multiple real estate properties
- Closely held businesses or partnership interests
- Significant investment portfolios
- Assets located in multiple states
- International assets or beneficiaries
- Complex tax considerations
- Trusts created for spouses, children, or future generations
- Charitable interests
- Assets that were not properly titled in the trust
- Potential disputes among trustees and beneficiaries
KJMLAW Partners brings together experience in trusts and estates, tax, real estate, business matters, and international planning to address these issues as part of the larger administration process.
What Are the First Steps After Someone Dies?
If you have recently become a successor trustee, it is important to understand the trust administration process before making distributions or taking significant action with trust assets.
Generally, the process begins with:
- Locate and review the trust and related estate planning documents.
- Obtain certified copies of the death certificate.
- Identify trust assets and other assets owned by the decedent.
- Determine how assets are titled and whether any assets fall outside the trust.
- Identify beneficiaries and understand their rights.
- Determine the trustee’s legal and fiduciary responsibilities.
- Address required notices, debts, expenses, and tax obligations.
- Determine the value of assets as necessary for tax and administration purposes.
- Resolve title, ownership, or other legal issues.
- Distribute the remaining trust assets according to the terms of the trust.
The order and requirements can vary depending on the circumstances. Trustees should be particularly careful about making distributions before determining whether all necessary expenses, taxes, claims, and other obligations have been addressed.
How Long Does Trust Administration Take in California?
There is no single timeline for administering a trust in California.
A relatively simple trust may be administered in a matter of months. More complex administrations can take a year or longer, particularly when the trust owns real estate, closely held businesses, substantial investment assets, or international assets, or when tax filings, valuations, or disputes are involved.
The goal should not simply be to distribute assets as quickly as possible. A trustee must first ensure that the trust has been properly administered and that outstanding obligations and legal requirements have been addressed.
Do You Need a Trust Administration Attorney?
A trustee is not required to handle every aspect of trust administration personally. In many circumstances, obtaining legal advice early in the process can help a trustee understand fiduciary responsibilities, identify potential problems, and avoid costly mistakes.
An attorney can be particularly valuable when the trust involves:
- Significant or complex assets
- Real estate
- Closely held businesses
- Estate or gift tax considerations
- International assets or beneficiaries
- Multiple trusts
- Unclear or conflicting trust provisions
- Assets that may not have been properly transferred to the trust
- Disagreements among beneficiaries or family members
KJMLAW Partners can work with a trustee from the beginning of the administration or become involved when a specific legal or tax issue arises.
When Trust Administration Becomes a Trust Dispute
Most trust administrations do not need to become litigation matters. However, disagreements can arise concerning the interpretation of a trust, distributions, trustee conduct, asset valuation, or the rights of beneficiaries.
Because KJMLAW Partners also handles trust litigation, our attorneys can help clients address disputes that emerge during administration and determine whether a matter can be resolved without litigation or requires court intervention.
Why Choose KJMLAW Partners for Trust Administration?
Trust administration often touches several areas of law at once. A trustee may need advice about trusts and estates one day, tax the next, and real estate or business ownership shortly thereafter.
KJMLAW Partners’ broader practice allows our attorneys to address these issues within one legal team. Our experience includes estate planning and trusts, trust administration, probate, tax planning, real estate, business matters, and international estate and tax planning.
For trustees administering more complex estates, that combination of experience can be particularly important.
Frequently Asked Questions About Trust Administration
A successor trustee is the person or entity named in a trust to take over management and administration of the trust when the original trustee can no longer serve, including after the death of the trust creator.
A properly funded living trust generally allows assets held in the trust to pass to beneficiaries without a traditional probate proceeding. However, assets that were not properly transferred to the trust, assets governed by other beneficiary designations, or other circumstances may require additional legal procedures or, in some cases, probate.
A successor trustee generally must identify and secure trust assets, review the trust documents, provide required notices, address debts and expenses, manage trust property, address applicable tax obligations, keep appropriate records, and distribute assets to beneficiaries according to the trust.
Not necessarily. A trustee should generally determine the trust’s obligations, address applicable debts and expenses, evaluate tax and other legal requirements, and determine whether sufficient assets must be retained before making final distributions.
An asset that was not properly transferred to a trust may require a different legal process. Depending on the circumstances, there may be procedures available to transfer the asset to the trust, or the asset may need to be handled through probate or another legal proceeding.
Trustees have fiduciary duties and must comply with the terms of the trust and applicable law. A trustee who improperly administers trust assets or breaches a fiduciary duty may face personal liability. Obtaining legal advice can help a trustee understand and fulfill those responsibilities.
There is not a blanket requirement that every trustee hire an attorney. However, legal counsel can be particularly important when administering a complex estate, dealing with significant assets, addressing tax issues, handling real estate or business interests, or resolving beneficiary disputes.
After the trustee has completed the necessary administration, trust assets are distributed according to the terms of the trust. Distribution may require transferring title to real estate, coordinating with financial institutions, selling or distributing business interests, or completing other legal and financial steps.
The tax issues depend on the assets and circumstances of the estate. Potential issues can include the decedent’s final income tax return, income earned by the trust after death, estate and gift tax considerations, property taxes, capital gains, and tax considerations involving international assets.
Yes. International issues can arise when a decedent, trustee, beneficiary, or asset has a connection to another country. The analysis may involve U.S. tax law, foreign tax law, tax treaties, foreign trusts or entities, and the location and ownership of assets.
The length of trust administration depends on the complexity of the trust and its assets. Some administrations can be completed within several months, while complex estates involving real estate, businesses, tax filings, international assets, or disputes may take a year or longer.
Start by locating the trust and related estate planning documents, securing information about the decedent’s assets, and understanding your responsibilities before making significant decisions or distributions. Because early decisions can affect the remainder of the administration, consulting with a trust administration attorney at the outset can help identify potential issues before they become more difficult or expensive to resolve.
Talk With a California Trust Administration Attorney
If you have been named successor trustee or are responsible for administering a trust after the death of a loved one, KJMLAW Partners can help you understand your responsibilities and navigate the administration process.
Our attorneys represent trustees and beneficiaries throughout California, with particular experience involving complex estates, tax matters, real estate, closely held businesses, and international assets.
To find out how our KJMLAW Partners trust administration attorneys can help you with the administration of an estate, please call our office at 626-565-5680.
The information on this page is provided for general informational purposes and is not legal advice. Every trust administration is different, and the appropriate legal strategy depends on the specific facts and governing documents.
