Successor Trustee Duties California: Complete 90-Day Checklist 2025

By Rozsa Gyene, Estate Planning Attorney (State Bar #208356) | Updated January 24, 2025

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Being named as a successor trustee is both an honor and a responsibility. When the trust creator (grantor/trustor/settlor) passes away, you step into a critical role managing and distributing their assets according to the trust terms.

As a California estate planning attorney with 25+ years of experience, I've guided hundreds of successor trustees through this process. This complete guide provides everything you need to know about your duties, deadlines, and responsibilities as a successor trustee in California in 2025.

⚠️ Important: You Can Be Held Personally Liable

As a successor trustee, you have a fiduciary duty to beneficiaries. Mistakes can result in personal liability, lawsuits, and financial responsibility for losses. This guide helps you avoid those pitfalls.

Overview: Your Role as Successor Trustee

When you become successor trustee, you have three primary responsibilities:

  1. Manage and protect trust assets (secure property, pay bills, maintain insurance)
  2. Settle trust affairs (pay debts, file taxes, handle legal requirements)
  3. Distribute assets to beneficiaries (according to trust terms)

How Long Does Trust Administration Take?

Compare to probate: Trust administration takes 6-12 months vs. 12-18+ months for probate. This is one reason living trusts are so valuable in California.

Immediate Steps (First 7 Days)

1

Locate the Trust Document

Within 24-48 hours

You need the original trust document (or a certified copy). Look in:

Why it's critical: The trust document contains all your instructions: who inherits what, how to distribute assets, and your powers as trustee.

2

Order Death Certificates

Within 2-3 days

Order 10-15 certified death certificates from the County Recorder or funeral home.

Cost: $21 per certificate in California

You'll need them for:

3

Secure Trust Property

Immediately

Take steps to protect trust assets:

4

Cancel Services and Prevent Identity Theft

Within 3-7 days

Notify these agencies to prevent fraud and stop unnecessary bills:

⏰ Critical 7-Day Deadline Summary

First Month Duties (Days 8-30)

5

Open Trust Bank Account

Within 14 days

Open a new bank account titled: "[Trust Name] Trust, [Your Name], Successor Trustee"

You'll need:

Why: All trust income and expenses must flow through this account (not your personal account).

6

Get an EIN (Employer Identification Number)

Within 14 days

Apply for a federal EIN for the trust at IRS.gov (free, takes 10 minutes).

Why: Once the grantor dies, the trust needs its own tax ID number (can't use their Social Security number anymore).

7

Notify Beneficiaries (California Law Requirement)

Within 60 days of death (California Probate Code § 16061.7)

You must send written notice to:

The notice must include:

⚠️ WARNING: Failing to send this notice can result in beneficiaries having UNLIMITED time to contest the trust. Don't skip this!

8

Create Complete Asset Inventory

Within 30 days

Document ALL trust assets with values as of date of death:

Real Estate:

Financial Accounts:

Personal Property:

Business Interests:

Debts and Liabilities:

9

Pay Immediate Bills and Expenses

Ongoing

Keep paying necessary expenses from trust account:

Document everything: Keep receipts and records of all payments.

⏰ Critical First Month Deadlines

Months 2-3: Trust Administration

10

Value All Assets

Months 2-3

Get professional appraisals for:

Why: You need accurate values for tax returns and distribution to beneficiaries.

11

Pay Valid Debts

Months 2-4

Review and pay legitimate debts:

  1. Verify debts are valid
  2. Pay funeral expenses first
  3. Pay secured debts (mortgages)
  4. Pay taxes
  5. Pay remaining creditors

⚠️ Warning: Don't pay debts from your personal funds. Use trust assets only. Also, don't distribute assets to beneficiaries until all debts and taxes are paid — you could be personally liable!

12

Prepare and File Tax Returns

Months 2-6 (depending on deadlines)

Decedent's Final Income Tax Returns:

Trust Income Tax Returns:

Estate Tax Returns (if applicable):

Recommendation: Hire a CPA or tax attorney who specializes in trust and estate taxation. Mistakes can be expensive.

Deadline Task Law/Code
Immediately Secure trust property Fiduciary duty
60 days Notify beneficiaries and heirs CA Probate Code § 16061.7
120 days Beneficiary contest period ends CA Probate Code § 16061.7
4 months File final income tax (if Oct-Dec death) IRS/FTB
9 months File federal estate tax (if required) IRS Form 706
April 15 next year File final income tax returns IRS/FTB

⚠️ Miss a Deadline = Personal Liability

Missing California's 60-day beneficiary notice deadline can expose you to lawsuits. Missing tax deadlines can result in penalties and interest that YOU may have to pay personally.

Financial and Tax Duties

Your Fiduciary Duties Include:

1. Duty of Loyalty

2. Duty of Impartiality

3. Duty to Inform

4. Duty of Prudent Investment

5. Duty to Keep Records

Asset Distribution Process

Once all debts, taxes, and administration costs are paid, you can distribute assets to beneficiaries.

13

Prepare Final Accounting

Create a detailed report showing:

14

Get Beneficiary Receipts and Releases

Before distributing assets, have beneficiaries sign:

Why: Protects you from future lawsuits claiming improper distribution.

15

Distribute Assets According to Trust Terms

Follow the trust document exactly:

16

Transfer Property Titles

17

Close Trust

After all distributions:

Common Mistakes to Avoid

1. Mixing Personal and Trust Funds

Never use your personal account for trust transactions. This is called "commingling" and can expose you to personal liability.

2. Distributing Assets Too Early

Wait until ALL debts and taxes are paid. If you distribute assets and then discover unpaid taxes, you may be personally liable for those taxes.

3. Failing to Notify Beneficiaries Within 60 Days

California law requires notice within 60 days. Miss this deadline and beneficiaries can contest the trust indefinitely.

4. Not Getting Professional Help When Needed

If the trust involves businesses, significant assets, or complex tax issues, hire professionals. The cost is worth avoiding costly mistakes.

5. Poor Communication with Beneficiaries

Keep beneficiaries informed. Most lawsuits against trustees arise from poor communication, not actual misconduct.

6. Making Distributions Based on Verbal Promises

"Dad always said I could have the house" doesn't matter. Follow the trust document exactly. Verbal promises are not enforceable.

7. Not Keeping Detailed Records

Every transaction should be documented. You may need to provide accounting to beneficiaries or defend yourself in court.

When to Get Professional Help

Consider hiring an attorney if:

Cost: $250-500/hour for estate attorney, or $3,000-10,000 flat fee for full administration help.

💡 When to DIY vs. Hire Help

DIY-friendly trusts:

Hire an attorney for:

Complete 90-Day Successor Trustee Checklist

Week 1 (Days 1-7)

Day 1: Locate original trust document
Day 1-2: Order 10-15 certified death certificates
Day 1-2: Secure trust property (change locks, secure valuables)
Day 2-3: Notify Social Security Administration
Day 3-7: Forward mail to your address
Day 3-7: Notify credit bureaus to prevent identity theft
Day 5-7: Contact banks to secure accounts

Weeks 2-4 (Days 8-30)

Day 8-14: Apply for EIN at IRS.gov
Day 10-14: Open trust bank account
Day 10-30: Create complete asset inventory
Day 15-30: Begin paying necessary bills from trust account
Day 30: Complete initial asset valuation

Months 2-3 (Days 31-90)

Day 40-60: Send required notices to beneficiaries (within 60 days)
Day 45-75: Get professional appraisals (real estate, business, valuables)
Day 60-90: Review and pay valid debts
Day 60-90: Begin tax return preparation
Day 75-90: Prepare accounting for beneficiaries
Day 180: After all debts/taxes paid, begin distributions

Frequently Asked Questions

How long do I have to distribute assets to beneficiaries?

California law doesn't specify a strict timeline, but trust documents often require "prompt" distribution. Generally, 6-12 months is reasonable for most trusts. However, you should NOT distribute until all debts, taxes, and expenses are paid.

Can I be compensated as successor trustee?

Yes. California law allows "reasonable compensation." Typical trustee fees are 1-1.5% of trust assets annually, or hourly rates of $50-100/hour. Check your trust document for specific compensation provisions.

What if a beneficiary disagrees with my decisions?

Document everything and follow the trust document exactly. If serious disputes arise, consider mediation or consult an estate attorney. Beneficiaries can petition the court, but you're protected if you acted in good faith and followed the trust.

Do I need to file a tax return for the trust?

Yes, if the trust earns more than $600 in income after the grantor's death. You'll need to file Form 1041 (federal) and Form 541 (California). Hire a CPA specializing in estate and trust taxes.

Can I resign as successor trustee?

Yes, but you must properly resign by giving written notice to beneficiaries and the successor trustee named in the trust. You can't just walk away — you need to transfer responsibilities formally.

What if the trust doesn't name a successor trustee?

Beneficiaries can agree on a successor trustee, or the court can appoint one. Consult an estate attorney immediately.

How do I transfer real estate from the trust to beneficiaries?

You'll need to record a deed (typically a "Trustee's Deed") with the county recorder transferring property from the trust to the beneficiary. Consider hiring a real estate attorney or title company to handle this.

What records should I keep?

Keep ALL records for at least 7 years:

Need Help Administering a Trust in California?

As successor trustee, you have significant legal responsibilities. Don't go it alone.

Free 30-Minute Consultation

Call (818) 291-6217 to speak with California estate planning attorney Rozsa Gyene

State Bar Attorney #208356 | 25+ Years Experience | Flat-Fee Trust Administration Available

Key Takeaways for California Successor Trustees

  1. Act Quickly: Secure property and death certificates within 7 days
  2. Know Your Deadlines: 60 days for beneficiary notice, various tax deadlines
  3. Get an EIN: Required for trust bank account and tax returns
  4. Document Everything: Keep detailed records of ALL transactions
  5. Don't Rush Distributions: Pay all debts and taxes first
  6. Communicate: Keep beneficiaries informed throughout the process
  7. Get Help When Needed: Complex trusts warrant professional assistance

Being a successor trustee is a significant responsibility, but with proper organization and attention to deadlines, you can successfully administer the trust and honor your loved one's wishes.

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