Successor Trustee Checklist: Administering a Trust in California

Robert E. Williams, Attorney at Law · Updated October 4, 2026 · 6 min read

Being named successor trustee is an honor, and also a serious legal responsibility. When the person who created a revocable living trust dies, the trust becomes irrevocable and the successor trustee becomes responsible for managing, protecting and eventually distributing everything the trust owns. California law gives trustees specific duties and deadlines, and trustees can be held personally liable if they ignore them.

This checklist walks through the typical stages of trust administration in California, from the first weeks after a death to the final distribution.

First Weeks: Secure and Organize

• Read the trust carefully. Locate the original trust document and every amendment. Note who the beneficiaries are, how and when they receive their shares, and any special instructions.
• Order certified death certificates. You will need several for financial institutions, the county recorder and insurance companies.
• Secure the property. Change locks if appropriate, keep homeowner's and auto insurance in force (tell the insurer the owner has died), and safeguard valuables, mail and important papers.
• Find the pour-over will. Deliver the original will to the superior court clerk as required by law, even if you expect no probate.
• Make a list of assets and debts. Review bank statements, brokerage accounts, tax returns, deeds and mail to identify everything the decedent owned and owed, and how each asset is titled.

Within 60 Days: Send the Required Notice

When a revocable trust becomes irrevocable because of the settlor's death, the trustee must serve a notice by mail on each beneficiary and on each heir of the deceased settlor (Probate Code section 16061.7). The notice must include specific information, including the identity of the settlor, the trustee's name and address, the address where the trust is administered, the beneficiary's right to request a copy of the trust terms, and a warning in bold type about the deadline to contest the trust.

Under Probate Code section 16061.8, a person who receives the notice generally may not bring an action to contest the trust more than 120 days after the notice is served, or 60 days after a copy of the trust terms is delivered, whichever is later. Sending a correct notice promptly starts that clock and protects both the trustee and the beneficiaries. Keep proof of mailing.

Taxes and Identification Numbers

While the settlor was alive, the trust usually reported income under the settlor's Social Security number. After death, the trust needs its own Employer Identification Number from the IRS. Use the new number to retitle or open trust accounts.

Tax tasks commonly include:

• Filing the decedent's final individual income tax returns (federal Form 1040 and California Form 540).
• Filing fiduciary income tax returns for the trust while it holds assets and earns income (federal Form 1041 and California Form 541).
• Determining whether a federal estate tax return (Form 706) is required or advisable. For deaths in 2026, the exemption is $15 million per person. Even below that amount, a surviving spouse may want to file to preserve the deceased spouse's unused exemption ("portability").

California has no state estate tax or inheritance tax.

Valuation and Basis

Obtain date-of-death values for real estate, securities and other significant assets. A qualified real estate appraisal is usually worthwhile. These values matter because most inherited assets receive a new income tax basis equal to fair market value at death. In a community property state like California, both halves of community property held by a married couple generally receive the new basis when the first spouse dies, which can greatly reduce capital gains tax if the survivor later sells.

Real Property Tasks

• Change in Ownership Statement. A Change in Ownership Statement (Death of Real Property Owner) must generally be filed with the county assessor within 150 days after the death for each parcel of California real property.
• Proposition 19. If a child or grandchild will inherit the family home, review whether they qualify for the parent-child exclusion. Since February 2021, the exclusion generally applies only if the child makes the home their principal residence within one year, and the benefit is limited for higher-value homes. Claim forms must be filed with the assessor.
• Affidavit of death of trustee. To show that you now have authority over real estate held in the trust, record an affidavit of death of trustee with the county recorder, along with a certified death certificate.

Managing Assets During Administration

As trustee you must act as a prudent investor, keep trust property separate from your own, and treat all beneficiaries impartially. Practical steps include:

• Open a trust checking account and pay all trust expenses from it.
• Keep a record of every dollar received and spent.
• Avoid self-dealing: do not buy trust property, borrow from the trust or use trust property for your own benefit unless the trust clearly allows it and the beneficiaries are fully informed.
• Communicate with beneficiaries. Regular updates prevent misunderstandings.

Paying Debts and Expenses

The trustee pays legitimate debts, final medical bills, funeral costs, taxes and administration expenses. A trustee may use the optional creditor claim procedure in Probate Code sections 19000 and following, which publishes notice and sets a deadline for creditors, similar to probate. If the settlor received Medi-Cal benefits, check whether the state has a recovery claim; under current California rules, recovery is generally limited to assets that pass through the probate estate, but the issue should be confirmed.

Retirement Accounts and Other Non-Trust Assets

Many assets pass outside the trust by beneficiary designation, including IRAs, 401(k)s and life insurance. Those beneficiaries deal directly with the account custodian. If the trust itself is named as beneficiary, special income tax rules apply to how quickly the account must be withdrawn. If an asset was accidentally left outside the trust, the trustee may be able to use a small estate affidavit or a petition under Probate Code section 850 (often called a Heggstad petition) to bring it into the trust without full probate. Our guide to funding a living trust explains how to prevent this problem.

Accounting and Distribution

California trustees have a duty to account to beneficiaries at least annually and at the termination of the trust, unless the accounting is waived (Probate Code section 16062). A final account typically shows the starting inventory, all receipts and disbursements, gains and losses, trustee and professional fees, and the proposed distribution.

Before distributing, it is common to hold a reserve for final tax returns and expenses. Many trustees ask beneficiaries to sign a receipt and release when they receive their shares. If the trust continues for a minor or a beneficiary with special needs, the trustee's work may continue for years.

Trustee Compensation

Unless the trust says otherwise, a California trustee is entitled to reasonable compensation (Probate Code section 15681). Family members often waive compensation, but professional or non-family trustees typically charge an hourly or percentage-based fee. Keep time records if you plan to request compensation.

Conclusion

Trust administration usually avoids court, but it is not informal. A successor trustee should secure the assets, send the 60-day notice, obtain a tax ID and valuations, handle real property filings, pay debts and taxes, keep careful records and account to the beneficiaries before distributing. Trustees who follow these steps protect the family's inheritance and protect themselves from liability. If questions come up about taxes, real estate or a beneficiary dispute, a California trust attorney can help keep the administration on track. For comparison with court-supervised estates, see our overview of the California probate process.

Related Articles

• The California Probate Process, Step by Step
• How to Fund Your Living Trust (and Why It Matters)
• Special Needs Trusts in California: Protecting SSI and Medi-Cal

This article provides general information about California and federal law as of October 4, 2026. It is not legal advice and does not create an attorney–client relationship.