First Steps After You've Been Named Trustee
Being named trustee of a loved one's trust can feel overwhelming. You may be grieving while also facing a long to-do list full of legal, financial, and administrative tasks. So where do you even start?
Below is a list of what to do first, so you can get organized and get successfully administer the trust.
1. Read the Trust Document
The trust instrument is your roadmap. Carefully review it to confirm:
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Who the beneficiaries are
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Whether you are the sole trustee or serving with co-trustees
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The terms for how property is to be managed and distributed
Make a copy (and a digital copy), take notes, and flag important provisions. If you need help deciphering the terms, reach out to an attorney.
2. Secure the Trust Property
Your next duty is to safeguard trust assets. That may include:
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Locking up the decedent's home, removing valuables, and caring for pets
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Making sure vehicles and personal property are protected
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Checking insurance coverage to prevent lapses
Think of yourself as the “guardian” of the trust's property until it's ready to be distributed.
3. Send Required Notices
Under California Probate Code § 16061.7, you must notify all heirs and beneficiaries when the trust becomes irrevocable. This formal “trustee notice” includes key details about the trust and starts a 120-day period for beneficiaries to contest it.
When talking with new clients, this is the most commonly missed requirement. Failing to send this notice on time and in the correct format can cause legal headaches later and open the trustee up to liability.
4. Obtain Death Certificates
Most financial institutions and government agencies require certified copies of the death certificate. Plan on ordering at least ten copies to use throughout the process.
5. Get a Tax ID Number (EIN) for the Trust
Once the trust becomes irrevocable, it is treated as its own legal entity. You'll need an Employer Identification Number (EIN) from the IRS to:
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Open a trust bank account
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Report income earned by the trust
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File required tax returns
This is a simple step but a crucial one.
6. Open a Trust Bank Account
Never use your personal bank account for trust funds. All trust income and expenses must flow through a dedicated account titled in the name of the trust. This protects you from personal liability and makes accounting much easier.
7. Redirect Mail and Cancel Accounts
Forward the decedent's mail to you as trustee. This helps you identify assets, accounts, and bills. You should also:
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Notify Social Security of the death
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Cancel credit cards, subscriptions, or services to prevent fraud or unnecessary charges
Moving Forward
Completing these initial steps in the first few weeks lays the foundation for smooth trust administration. From there, you'll move into reviewing assets, addressing debts, filing taxes, and eventually distributing property to beneficiaries.
At Finlay Law Group, we strive to make life's most stressful moments less stressful by providing caring, individualized, and responsive service in trust administration, probate, and estate planning. If you've been named trustee, contact us today to get the guidance and peace of mind you deserve.
Disclaimer: The above information is intended for information purposes alone and is not intended as legal advice. Please consult with counsel before taking any steps in reliance on any of the information contained herein.