Written by When grantors create a trust, they appoint a trustee to manage it according to specific terms. The grantor transfers assets into the trust intending to benefit their designated beneficiaries. Upon the grantor’s passing, these beneficiaries will receive their assets based on the instructions in the trust document.
A trustee assumes responsibility for administering the trust based on its type and terms. Most often, trustees begin their duties after the grantor’s death. They have a fiduciary duty to act in the interests of the beneficiaries and ensure they receive their rightful share of the assets.
In California, the trust administration has specific guidelines that dictate how to manage this tool after the grantors death. The process typically includes notifying beneficiaries, managing investments, settling debts and taxes, and distributing assets. However, the actual steps may vary depending on the type of trust.
Given the complexity of their role, the trustee must execute every phase of the trust administration carefully to ensure legal compliance. Understanding the different stages can better prepare you to meet your obligations effectively.
Immediate Steps Following The Grantor’s Death
Prompt and thoughtful actions following the grantor’s death are essential for a smooth and efficient trust administration. They set a solid foundation for the entire process. Taking the earlier steps carefully helps prevent complications and disputes that could arise later on.
Obtain The Trust Document & Related Paperwork
As the trustee, your primary task is to locate and secure the original trust document, which outlines the grantor’s terms. Understanding these instructions is essential, as the grantor may have included specific conditions you must strictly follow.
In addition to the trust document, gather all relevant paperwork, including death certificate, property deeds, and financial statements. It is also advisable to obtain multiple copies of the death certificate. Different processes often require their copy, including notifying financial institutions, transferring assets, and other legal obligations.
Notify Relevant Parties
Once you have the trust document and necessary paperwork, notify all relevant parties of the grantor’s passing. California law imposes specific deadlines for these notifications, making timely action essential to avoid legal penalties.
You must inform the beneficiaries within 60 days of the grantor’s death. If any beneficiary is serving jail time, you must write a notice to the California Victim Compensation Board Director within 90 days of the passing.
Failing to send a notice can leave the trust vulnerable to future claims from unexpected beneficiaries. You may be personally liable for any resulting damages if assets are improperly distributed.
Additionally, if the grantor received California health care benefits, you must notify the Director of Health Services within 90 days. In some instances, you may need to inform the county recorder or assessor within 150 days of the grantor’s death. This applies when the trust property includes taxable real estate or a manufactured floating home in California.
Los Angeles Probate Attorneys
445 S Figueroa St, Suite 3100
Los Angeles, CA 90071
(424) 402-1228
https://www.LosAngelesProbateAttorneys.com/
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