6 Steps to Trust Administration

What Every Trustee Should Know: The 6 Key Stages of Trust Administration in California 

Serving as a trustee can feel like stepping into a complex maze — just when you’re grieving the loss of a loved one, you’re suddenly responsible for handling legal, financial, and family matters that most people have never encountered before. 

The good news? You don’t have to go it alone. And with a clear roadmap, the path becomes a lot more manageable. 

Below is a simplified breakdown of the 6 key stages of California trust administration — so you can understand what’s ahead and avoid costly mistakes. 

✅ Stage 1: Review & Gather 

Your first job is to get organized. That means reviewing the trust document, locating the will, obtaining the death certificate, and identifying assets and debts. You’ll also want to understand the family dynamics — this can reveal potential issues that might affect the process. 

Tip: California law requires that the will be lodged with the court within 30 days of death. Don’t skip this step! 

✅ Stage 2: Accept the Role 

Before you can act as trustee, you must formally accept the role — and notify institutions, creditors, and agencies. This includes getting a new tax ID for the trust and understanding whether a bond is required. 

Note: If you don’t formally accept in writing, your actions could still be interpreted as acceptance if you start managing trust assets. 

✅ Stage 3: Administer the Trust 

This is where most of the heavy lifting happens. You’ll need to: 

• Notify all beneficiaries 
• Inventory and safeguard trust assets 
• File tax documents 
• Handle debts and communicate with creditors 
• Cancel accounts and subscriptions 

It’s also the time to engage professional support, including tax preparers, appraisers, and legal counsel as needed. 

✅ Stage 4: Accounting 

Trustees have a legal duty to keep beneficiaries informed. This includes preparing an accounting of trust activity unless everyone waives that right. 

The accounting must disclose: 

• All receipts and disbursements 
• Current trust assets 
• Trustee and advisor compensation 

This transparency protects both the trustee and the beneficiaries. 

✅ Stage 5: Sub-Trust Creation (If Required) 

Some trusts create sub-trusts — for children, grandchildren, or beneficiaries with special needs. If the trust calls for these, you’ll need to legally create them (but not fund them yet). Each sub-trust will need its own documentation and tax ID. 

✅ Stage 6: Distribution & Sub-Trust Funding 

Now comes the final stretch: carrying out specific gifts, distributing remaining assets, and funding any required sub-trusts. Keep a reserve for closing expenses, taxes, and possible disputes before wrapping up. 

⚠️ Final Thought 

Trust administration isn’t just a checklist — it’s a fiduciary responsibility with serious legal consequences if done incorrectly. If you’re a trustee feeling overwhelmed or unsure of where to start, you’re not alone. I help trustees like you navigate this process with confidence and clarity. 

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