What Is Trust Administration

The Work That Begins After a Trust Is Triggered

Trust administration is the legal and financial process of settling a revocable living trust after the grantor's death - or, in the case of an irrevocable trust, after a triggering event such as incapacity. In California, trustees are bound by the California Probate Code (Division 9) and owe fiduciary duties to beneficiaries that are enforceable in court. Acting as your own trustee without counsel carries significant personal liability risk.

The process involves notifying beneficiaries and heirs under Probate Code Section 16061.7, marshaling and valuing trust assets, paying creditors and taxes, preparing accountings, and ultimately distributing property to beneficiaries. Depending on the complexity of the estate - real property, business interests, retirement accounts, and out-of-state assets all add layers - trust settlement can take anywhere from several months to several years.

The Berhe Law Firm provides full-scope trust administration counsel. We serve both trustees who need guidance on their legal duties and beneficiaries who want to ensure the process is being handled correctly. Our approach is direct and thorough - we identify potential issues early, keep all parties appropriately informed, and move the administration forward without unnecessary delay.

120
Days - statutory notice period under Probate Code 16061.7

9+
Months - typical administration timeline for a mid-size estate

Services

What We Handle

Post-Death Trust Settlement

Full administration of revocable trusts following the grantor's death - from initial inventory to final distribution, handled in compliance with California Probate Code requirements.

Trustee Guidance & Representation

Ongoing legal counsel for individual and successor trustees - clarifying fiduciary duties, managing liability exposure, and advising on prudent-investor obligations under California law.

Beneficiary Notifications

Preparation and delivery of required statutory notices to all trust beneficiaries and heirs-at-law under Probate Code Section 16061.7, protecting the trustee from future contest claims.

Asset Identification & Distribution

Systematic marshaling and valuation of trust assets - real property, financial accounts, business interests, and personal property - followed by legally compliant distribution to beneficiaries.

Trust Accountings

Preparation of formal trust accountings as required under Probate Code Sections 16062 through 16064, documenting all receipts, disbursements, and distributions to beneficiaries.

Fiduciary Compliance

Ensuring the trustee satisfies all statutory obligations under California's Uniform Prudent Investor Act and Trust Law, minimizing liability and protecting against beneficiary claims.

Our Approach

How Trust Administration Works With Our Firm

Initial Assessment

We review the trust instrument, any amendments, and the estate's asset inventory. We identify the trust's structure, applicable California law, potential creditor claims, and any issues that could complicate administration - before they become problems.

Administration & Compliance

We handle statutory notices, asset transfers, tax filings, creditor resolution, and ongoing trustee guidance throughout the administration period. You are kept informed at each stage - nothing moves forward without your understanding and approval.

Final Distribution & Closure

We prepare final accountings, obtain beneficiary receipts and releases, and complete all transfers needed to close the trust estate. Where appropriate, we petition the court for instructions or approval to protect the trustee from future liability.

Common Questions

Trust Administration - What Clients Ask

Answers to the questions trustees and beneficiaries most frequently raise. This information is general in nature and does not constitute legal advice.

California trust administration timelines vary significantly based on the estate's complexity. At minimum, trustees must wait 120 days after sending required notices under Probate Code Section 16061.7 before making final distributions - this gives creditors and potential contestants time to come forward. A straightforward estate with liquid assets may close in 9 to 12 months. Estates involving real property, business interests, multi-state assets, or pending litigation can take 2 to 3 years or longer. Tax considerations - particularly the filing of the decedent's final income tax return and a federal estate tax return if the estate exceeds the exemption amount - also affect the timeline. This information is general in nature and does not constitute legal advice for your specific situation.

California law imposes numerous mandatory duties on trustees, codified primarily in Probate Code Sections 16000 through 16105. These include the duty of loyalty (acting in the beneficiaries' best interests), the duty of impartiality (balancing the interests of current and remainder beneficiaries), the duty to keep beneficiaries reasonably informed, the duty to invest prudently under the Uniform Prudent Investor Act, and the duty to maintain records and render accountings. Trustees who breach these duties may be held personally liable for resulting losses. Serving as a trustee without understanding these obligations is one of the most common sources of trust litigation in California. This is general information and not legal advice.

A properly funded revocable living trust does avoid the formal probate process administered by the Superior Court. However, trust administration is not "automatic" - it still requires a structured process of notifying beneficiaries, collecting and transferring assets, paying debts and taxes, and making distributions. Assets that were never transferred into the trust, or that name the decedent as sole owner without a designated beneficiary, may still require a probate or small-estate proceeding under Probate Code Section 13100. Trust administration is generally faster, more private, and less expensive than probate, but it is not without its own legal requirements. This information is general in nature and does not constitute legal advice.

Yes. Under California Probate Code Section 16062, trustees are generally required to account to beneficiaries at least annually, upon termination of the trust, and upon a change of trustee. Beneficiaries have a right to review trust accountings and to petition the court for a judicial accounting if the trustee fails to provide one. The accounting must show all assets at the beginning and end of the accounting period, receipts, disbursements, gains and losses, and distributions. Beneficiaries who believe a trustee is mismanaging assets or withholding information can petition the Superior Court for relief under Probate Code Section 17200. This is general information only and not legal advice specific to your circumstances.

When a settlor dies and a revocable trust becomes irrevocable, California Probate Code Section 16061.7 requires the trustee to provide written notice to all trust beneficiaries and to all heirs at law within 60 days. Once the notice is served, the recipient has 120 days to file a trust contest. If no contest is filed within that window, the right to contest the trust is generally foreclosed - this is the "120-day cutoff." Failing to send the required notices promptly can extend the trustee's exposure to contest claims indefinitely. Proper notice protects the trustee and allows the administration to proceed on a defined timeline. This is general information and does not constitute legal advice.

Most California trust administrations are handled entirely outside of court. However, court involvement becomes necessary or advisable in several situations: when a beneficiary files a trust contest or petition challenging the trustee's conduct; when there is a dispute about the interpretation of trust terms; when the trustee needs court approval to deviate from the trust's investment or distribution provisions; when a creditor dispute requires resolution; or when a trustee seeks a court order confirming that administration has been properly completed. Trustees who are uncertain about a particular decision may also petition for instructions under Probate Code Section 17200, which can provide valuable protection against future liability. This information is general in nature and is not legal advice.

Trust Administration in California