Trust Administration

When the creator of a living trust dies or becomes incapacitated, the successor trustee is responsible for managing and administering the trust in accordance with its terms and California law. This process is known as trust administration.

Trust administration serves the same general purpose as probate but is typically handled without court involvement. As a result, it is generally much faster, less expensive, and more private.

The successor trustee has important legal duties and responsibilities. These may include notifying beneficiaries and heirs, identifying and appraising trust assets, ensuring that title to assets is properly transferred to the appropriate beneficiaries, paying debts and expenses, handling tax matters, and ultimately distributing the trust assets in accordance with the terms of the trust.

If these steps are not handled properly, the trustee may face personal liability to beneficiaries or creditors. Improper administration can also result in delays, disputes, and unintended tax consequences.

Hempel & Mudd Law can advise trustees regarding their duties and guide them through each stage of the administration process, helping ensure that the trust is administered efficiently, correctly, and in accordance with the law.