Probate and Trust Property Information and Resources

You're the Trustee. Now what?

You have a job to do and need to know where to start...

Someone passed away and you are now the successor Trustee of their estate under the terms of the trust they created. The trust document is your guide for settling the affairs of the estate. It should include a list of the estate assets and their locations. If there are associated account numbers, they, too, should be enumerated in the trust.

If the trust was created as a revocable living trust for an individual, it became irrevocable upon the creator's death. If it was a married trust and one spouse died, usually the remaining spouse becomes the trustee and the trust remains revocable until his or her death. If it was an A/B trust or one of the many other forms of trust, it will function similarly, but there will be variations in the settlement process that go beyond the scope of this discussion.

Any powers of attorney created by the decedent during his or her lifetime become null and void upon the creator's passing. All estate and asset management authority then will emenate from the trust.

It's all about the details for you, too.

You need to gather detailed information about all the assets of the deceased. That can be easy if the trust is current or it can be tough of it is not. Many times, people create trusts years before their passing. Assets and their locations may change during the intervening time and often trust documents are not updated to reflect those changes. Verify that bank accounts and other stated assets are still active. If a bank account is not a trust account, is there a POD (Payable On Death) on record? Verify that all real properties are titled in the name of the trust. If a property has for some reason been left out of the trust, you will have to probate that property. Did the decedent own a business? If so, how was that business held? Will it need to be included in probate?

Probate will be needed in California if the value of non-trust assets exceed $150,000. Information on this website germane to settling probate properties will be helpful for you. If there are no excluded properties and non-trust assets are under $150,000 in value, your task is normally very straightforward - just settle outstanding debts and follow the terms of the trust.

As a Trustee, where do you begin?

Start by reviewing the trust document. Also, review our "Executor's Duties" chart. Your responsibilities will be similar.

The trust will tell you about the final wishes of the deceased. If pre-arrangements have not been made, you will need to make final arrangements for burial or cremation. Get lots of death certificates. You'll need them when settling accounts. If there is life insurance or annuities involved, report the decedent's passing. If the responsible insurance agent is identifiable, it is best to work with that person. As the successor trustee, you can contact the insurance carrier directly.

The trust should stipulate who the beneficiaries are and what they are to receive from the trust. The trust is your authorizing document to disburse assets. It is your job to see that any remaining debts are paid including last medical expenses. You are responsible to file the decedent's final tax return. If the trust earns income from assets before it is fully settled, you will probably need to get a tax ID for the trust and file a separate tax return for it as well. See a qualified tax specialist for guidance in this area.

If there was a reverse mortgage on any real estate, that property must be either refinanced or sold typically within a year of the decedent's passing. If you have questions about this process, we can help. We understand the various forms of financing that may exist on a property. We specialize in assisting with the sale of residential and commercial trust properties.

If there is a business involved in the estate, it should be valued at the earliest possible date following the death of the owner. Our office can assist with that valuation and the sale of the business if a sale is desired.