Key Takeaways

• A successor trustee steps in to settle a living trust after the person who created it dies — a real fiduciary job, even though it avoids court supervision.
• A critical early step: send the statutory notice to beneficiaries and heirs within 60 days, which starts a 120-day clock for them to contest the trust.
• The trustee gathers assets, pays debts and taxes, keeps records, and distributes to beneficiaries under the trust’s terms.
• The trustee owes fiduciary duties and can be personally liable for mishandling the trust.
• Trust administration is generally faster and more private than probate, but it isn’t automatic — it has steps and deadlines.

Suddenly You’re the Successor Trustee

When someone with a living trust dies, the person they named as successor trustee steps in to settle it. If that’s you, you may be grieving and suddenly responsible for someone’s entire financial legacy — without a court walking you through it. Trust administration avoids probate’s court supervision, which is its great advantage, but that also means no judge is guiding you or catching your mistakes. The responsibility is real, and so is the potential personal liability if you get it wrong.

The good news: the job follows a recognizable sequence, and most of it is manageable with care and, where needed, guidance. This checklist walks through what a California successor trustee generally needs to do — starting with a deadline that surprises many new trustees.

Step 1: Secure Everything and Get the Documents

Right away, the trustee should locate the trust document (and any amendments) and secure the assets — the home, accounts, valuables, business interests. Read the trust carefully: it’s your instruction manual, telling you who the beneficiaries are, what they get, and how you’re to administer it. Get certified copies of the death certificate (you’ll need several), and begin identifying everything the trust owns.

A key early tool is the certification of trust — a short document proving your authority as trustee without revealing the trust’s private terms. Financial institutions will generally accept it (rather than the full trust) to let you act on the trust’s accounts.

Step 2: Send the 60-Day Notice — This One’s Critical

Here’s the deadline new trustees most often don’t know about, and it’s important. When a revocable trust becomes irrevocable because the settlor died, California law requires the trustee to serve a statutory notice on the trust beneficiaries and the deceased person’s heirs — generally within 60 days of the death.

Why it matters so much: that notice starts the clock on the period during which someone can contest the trust. Once proper notice is given, a recipient generally has 120 days from the notice (or 60 days from getting a copy of the trust terms, if later) to bring a contest. Send the notice promptly and that contest window closes on schedule, giving finality. Fail to send it, and you leave the trust open to challenge for longer — and a trustee who doesn’t give the required notice can face liability. This single step protects both the trust and the trustee, so it belongs at the very top of the to-do list.

Just became a successor trustee? The 60-day notice is a deadline you don’t want to miss. Bay Legal can make sure it’s done right and on time. For guidance on your specific situation, call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

Step 3: Inventory and Value the Assets

The trustee should identify and value all the trust’s assets as of the date of death — accounts, real estate, investments, personal property, business interests. Date-of-death values matter both for administering the trust and for tax purposes (including the stepped-up basis, a CPA matter). For real estate, that usually means an appraisal. This inventory is the foundation for everything that follows — paying debts, accounting to beneficiaries, and distributing correctly.

Step 4: Handle Debts, Expenses, and Taxes

The trustee pays the deceased person’s legitimate debts and final expenses from trust assets, along with the costs of administration. Trust administration doesn’t have probate’s automatic court-supervised creditor cutoff, but California offers an optional creditor-claim procedure a trustee can use to limit the time creditors have — worth considering for an estate with significant or uncertain debts.

On taxes, the trustee handles final income tax matters, any trust income tax filings, and — for large estates — a possible federal estate tax return. These are tax matters for a CPA or tax professional; the firm doesn’t give tax advice. The trustee’s job is to make sure they’re handled, coordinating with the right professional.

Step 5: Keep Records and Account to Beneficiaries

Throughout, the trustee must keep careful records of everything received, spent, and done, and must keep the beneficiaries reasonably informed. Beneficiaries are generally entitled to an accounting — a report of the trust’s transactions — and a trustee who refuses to provide information or account is asking for a dispute. Good records also protect the trustee: they’re the evidence that the job was done properly if anyone later questions it.

Step 6: Distribute and Close

Once debts, taxes, and expenses are handled and the contest window has run, the trustee distributes the trust assets to the beneficiaries according to the trust’s terms — outright, in shares, in continuing sub-trusts, or however the trust directs. The trustee obtains receipts and, where appropriate, a release from beneficiaries confirming they’ve received their distribution. Then the administration winds down and the trust is settled.

A trustee who distributes before debts and taxes are resolved takes the same risk an executor does — potentially being personally responsible for a shortfall. So distribution comes after the obligations are handled, not before.

The Fiduciary Duties Behind It All

Everything above flows from the trustee’s fiduciary duties: to follow the trust’s terms, act loyally and impartially, manage the assets prudently, avoid self-dealing, keep the assets separate, and inform and account to beneficiaries. A trustee who breaches these duties can be held personally liable — surcharged for losses, removed, and more. The duties are essentially the same high standard an executor owes, just without the court looking over your shoulder — which, if anything, makes careful administration more important, not less. Our guide on breach of fiduciary duty covers what happens when a trustee falls short.

The successor trustee job is real fiduciary work — without a judge to catch mistakes. Bay Legal can guide you through it and protect you from missteps. For guidance on your specific situation, call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

How This Fits With the Rest of Probate

Trust administration is the private alternative to probate — see our probate vs. trust administration comparison. It relies on the trust having been properly funded during life, intersects with the stepped-up basis (a CPA matter) and Prop 19 for real estate, and carries the same fiduciary-breach exposure as probate. For the broader picture, see our complete guide to California probate.

Frequently Asked Questions

What does a successor trustee do after death in California?

Secures the trust documents and assets, sends the required notice to beneficiaries and heirs, inventories and values the assets, pays debts and taxes, keeps records and accounts to beneficiaries, and distributes the trust assets according to its terms — all without ongoing court supervision.

What is the 60-day notice in California trust administration?

When a revocable trust becomes irrevocable on the settlor’s death, the trustee generally must serve a statutory notice on beneficiaries and heirs within 60 days. It starts the clock — generally 120 days — for anyone to contest the trust, giving the trust finality once it runs.

Can a successor trustee be held personally liable?

Yes. A trustee owes fiduciary duties and can be surcharged (held personally liable) for losses caused by mishandling the trust, self-dealing, or distributing improperly — and can be removed. The duties mirror an executor’s, without court supervision.

Is trust administration faster than probate?

Generally yes, because it avoids court supervision and the court calendar. But it still involves real steps — notice, inventory, paying debts and taxes, accounting, and distribution — and the contest window and tax matters take time.

Do you need a lawyer to administer a trust?

Not required, but the trustee’s personal liability and the deadlines (especially the 60-day notice) make guidance valuable — particularly for larger trusts, real estate, business interests, or any sign of beneficiary conflict.