Content courtesy of the Geiger Law Office, (760) 448-2220 or at http://geigerlawoffice.com/contact.cfm. Author is Brenda Geiger, J.D.
We are frequently asked by clients what a Successor Trustee does. Although there is no one set of items every Trustee is responsible for, there are some common responsibilities. The reason not all Trustees will be required to do the same tasks is because each estate is unique and different. This could be due to the type of assets, the ages of the beneficiaries, or due to the instructions the Grantors left in the trust itself.
However, there are some things that most Successor Trustees will likely be doing in their capacity as Trustee. Here are some of those items (although this list is certainly not exhaustive):
Providing legal notice to trust beneficiaries and heirs at law of the death of the Grantor;
Obtaining an IRS Tax ID Number for the trust (although not in the case of a simple Survivor’s Trust);
Filing a final income tax return for the decedent;
Possibly filing a death tax return;
Filing a trust income tax return annually for as long as the trust is held open;
Sometimes publishing a legal notice in a local newspaper regarding the death of the Grantor of the trust;
Marshalling all of the assets together and protecting the trust assets;
Opening a bank account for the trust;
Paying financial and last expenses of the decedent;
Collecting life insurance policy proceeds;
Determining if a formal Probate court action needs to be opened with the court for any assets not titled in the trust;
Notifying all banks and financial institutions of the death and that they are the nominated Successor Trustee;
Providing banks and financial custodians with legal proof that they are the Successor Trustee;
Providing legal notice to the V.A. (if applicable) and Department of Health Services of the death;
Determining beneficiary status of all the decedent’s retirement accounts.
Obtaining valuations on all property subject to capital gains as of the date of death of the decedent including real estate, brokerage accounts and business interests;
Examining whether any taxable lifetime gifts were made by the decedent;
Determining if an estate tax is due on the decedent’s Estate;
Paying off all of the debts of the Grantor of the trust from the assets of the trust;
Paying ongoing expenses of trust administration from the trust such as legal and CPA expenses, etc.;
Liquidating assets where necessary to pay off the debts of the Grantor;
Investing assets of the trust in a safe and prudent manner during trust administration;
Distributing the trust assets to the beneficiaries or to continuing trusts for the beneficiaries after all of the above has been completed.
Obtaining receipts for distributions from beneficiaries.
Providing accountings to the beneficiaries.
Presenting a settlement agreement to the beneficiaries for execution.
If you or a friend or loved one needs legal help administering a trust in California after a death, please contact us at (760) 448-2220 or at http://geigerlawoffice.com/contact.cfm