The California Successor
Trustee Checklist: 12 Steps
Taking over as successor trustee after a loved one passes is one of the most significant legal responsibilities a person can be handed — often with little warning and no preparation. This checklist walks you through every step in the right order. Check off each item as you complete it. For complex situations, always work alongside a qualified estate attorney.
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Step 01Locate and review the trust documentFind the original trust document and all amendments. Read it carefully — it contains your authority, your obligations, and the instructions for distributing assets. If you cannot locate it, check with the grantor's attorney, bank, or safe deposit box.⏱ Immediately
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Step 02Obtain multiple certified copies of the death certificateYou will need certified copies — not photocopies — for banks, title companies, government agencies, and other institutions. Order at least 8-10 copies from the county vital records office or funeral home. Running out is a common and frustrating delay.⏱ Within 1 week
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Step 03Notify beneficiaries as required by California lawCalifornia Probate Code Section 16061.7 requires that all beneficiaries and heirs at law be notified of the grantor's death and their rights under the trust within 60 days of you becoming successor trustee. This notification must include a copy of the trust or a summary. Missing this deadline can create legal liability.⏱ Within 60 days
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Step 04Secure all trust assetsTake immediate steps to protect trust property. For real estate: change locks, maintain utilities, verify insurance is in force, and address any immediate maintenance issues. For financial accounts: notify banks of the grantor's death and your successor trustee status. For personal property: inventory and secure valuables.⏱ Immediately
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Step 05Obtain a Taxpayer Identification Number (TIN) for the trustUpon the grantor's death, a revocable living trust becomes irrevocable and requires its own federal tax identification number — separate from the grantor's Social Security number. Apply for an EIN at irs.gov. This is required to open trust bank accounts and file trust tax returns. Takes about 15 minutes online.⏱ Within 2 weeks
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Step 06Open a trust bank accountOpen a checking account in the name of the trust using the new EIN. All trust income, expenses, and transactions should flow through this account. This keeps trust finances separate from your personal finances — which is essential for your protection as trustee and for the accounting you will provide to beneficiaries.⏱ Within 2 weeks
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Step 07Prepare a complete inventory and appraisal of trust assetsDocument every asset held in the trust with its fair market value as of the date of death. For real property, obtain a professional appraisal — this establishes the stepped-up basis for tax purposes and demonstrates your fiduciary diligence. For financial accounts, request date-of-death statements from each institution.⏱ Within 60 days
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Step 08Identify and pay valid debts and creditor claimsThe trust is responsible for the grantor's outstanding debts, final bills, and valid creditor claims. Unlike probate, there is no formal creditor notice period for a trust — but you should make reasonable efforts to identify outstanding obligations before distributing to beneficiaries. Distributing assets before paying valid debts can create personal liability for the trustee.⏱ Before distribution
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Step 09File required tax returnsTax obligations include: the grantor's final individual income tax return (Form 1040), a fiduciary income tax return for the trust (Form 1041 / California Form 541) for each year the trust has income, and potentially a federal estate tax return (Form 706) if the estate exceeds the federal exemption. Work with a CPA experienced in estate and trust taxation.⏱ Per IRS deadlines
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Step 10Sell or transfer real property as directed by the trustIf the trust directs that real property be sold, hire an agent experienced in trust administration sales. Your fiduciary duty requires selling at or near fair market value — document the pricing decision carefully. Sign all documents as "Trustee of [Trust Name]." Provide the buyer's title company with a Certification of Trust confirming your authority. If the property is to be distributed to a beneficiary rather than sold, record a new deed transferring title from the trust to the beneficiary.⏱ Per trust instructions
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Step 11Prepare a final accounting for beneficiariesBefore making final distributions, prepare a complete accounting showing all assets received, all income earned, all expenses paid, and all proposed distributions. Provide this to all beneficiaries and obtain their written approval — or wait the statutory period for objections. This accounting protects you from future claims and is a legal requirement in most trust administrations.⏱ Before final distribution
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Step 12Make final distributions and close the trustDistribute remaining assets to beneficiaries according to the trust's instructions. Get signed receipts from each beneficiary acknowledging receipt of their distribution. Close trust bank accounts, file a final tax return, and retain all trust records for at least 7 years. Congratulations — your duties as trustee are complete.⏱ After accounting approved
Step 10 — selling trust real property — is where many trustees find themselves most in need of guidance. Wolf Allies connects trustees with agents who have deep, proven experience in trust administration sales across Southern California. The service is completely free — our involvement never affects what you pay your agent.
Frequently Asked Questions for Successor Trustees
How long does trust administration take in California?
A straightforward trust administration typically takes 6-12 months from the grantor's death to final distribution. The timeline depends on the complexity of the assets, whether real property needs to be sold, and whether any disputes arise among beneficiaries.
Do I need an attorney to serve as successor trustee?
California law does not require a trustee to hire an attorney, but it is strongly advisable for any trust of significant complexity. Trustee errors can result in personal liability. An estate attorney's fees are paid from trust assets — not your personal funds — and are typically well worth the cost.
Can I be paid for serving as trustee?
Yes. California law allows trustees to receive reasonable compensation unless the trust document says otherwise. Keep records of all time spent from day one. "Reasonable" is generally interpreted as 1-2% of the trust's value annually, or a reasonable hourly rate.
What if a beneficiary disputes my decisions?
Beneficiaries have the right to petition the court to review trustee actions. The best protection is to follow the trust's instructions, document every decision, act transparently, and communicate regularly. If a dispute becomes serious, consult your estate attorney immediately.
