Trust Administration Attorney in Huntington Beach, CA
As successor trustee of a parent’s or spouse’s living trust, you are now responsible for everything the trust owns, which may include a Huntington Beach house your family has held for decades. Settling a trust is usually private, with no court case, but a trustee still owes legal duties to the beneficiaries and faces deadlines that start soon after the death. The Soto Law Group guides Huntington Beach trustees through each stage, and when a question needs a judge, we bring it to the Orange County Superior Court, which currently takes up trust petitions at the Costa Mesa Justice Complex.
Learn more about our trust administration services.
Your Duties as Successor Trustee
- Secure the property. Protect the house, keep its insurance in force, and collect the trust, any amendments, the will and certified copies of the death certificate.
- Notify the family. Probate Code Section 16061.7 gives the trustee 60 days from the date the trust becomes irrevocable to notify each beneficiary and heir. That notice starts the 120-day window to contest the trust, and anyone who receives it can ask for a copy of the trust’s terms.
- Open the trust’s accounts. Obtain a tax ID number and move cash into an account in the trust’s name.
- Value what the trust owns. Appraise the house and other assets as of the date of death, since those values usually become the new tax basis.
- Pay what is owed. Settle valid debts and expenses, and file the final personal and trust income tax returns.
- Report and distribute. Account to the beneficiaries and divide the property as the trust directs.
The Family Home: Assessor Filings, Proposition 19 and Basis
When the house is the trust’s largest asset, it is usually also the hardest decision. The Orange County Assessor needs a Change in Ownership Statement within 150 days of the death. If the house goes to a child, Proposition 19 generally means it will be reassessed unless that child makes it their primary residence, and the protection for a child who does is capped. A home owned for decades often carries a low assessed value, so a reassessment can raise the property tax bill sharply.
On the income tax side, the date-of-death value generally becomes the beneficiaries’ basis, which can make a sale after the death far less costly in capital gains tax. When siblings disagree, with one wanting to keep the house and another wanting to sell, the trustee has to follow the trust’s terms and treat each beneficiary impartially.
Huntington Harbour Homes, Boats and Rentals
A trust that owns a waterfront home, a boat or a rental asks more of its trustee. An empty house still needs insurance and upkeep. A boat has to be kept up, insured and then sold or transferred to the right beneficiary, which means dealing with its separate title. A rental means collecting rent, handling tenants and keeping clean records, because every dollar in and out will appear in the trustee’s accounting. Trustees generally must account to the beneficiaries at least annually, when the trust ends and when a trustee changes, unless an exception applies.
When the Trust Needs the Court
Court involvement is the exception in trust administration, but an older trust can raise issues that call for it. A petition can ask the court to bring in an asset that was never transferred to the trust, such as a house that was deeded out for a refinance and never deeded back, or to instruct the trustee when a provision is unclear. Beneficiaries can also petition to compel an accounting or to remove a trustee, which is one more reason careful records and regular communication protect you.
Frequently Asked Questions About Trust Administration in Huntington Beach
How long does it take to settle a trust in Huntington Beach?
Many trusts are settled in 12 to 18 months. A trust holding mostly cash can close sooner, while a house sale or a disagreement among beneficiaries can take longer.
Can I be the trustee and also a beneficiary?
Yes. It is common for an adult child to serve as trustee of a parent’s trust and share in it too. You must still treat the other beneficiaries impartially, keep them reasonably informed and avoid using trust property for your own benefit.
Does the house have to be sold?
Not necessarily. Depending on the trust’s terms, the house may be sold, distributed to one or more beneficiaries, or kept by one beneficiary who buys out the others.
What if I don't want to serve as trustee?
You aren’t required to accept the role. If you decline, the next successor named in the trust can step in. A trustee who has already started can resign as the trust allows, with the beneficiaries’ consent or with court approval.
Why Work With The Soto Law Group
We write trusts as well as settle them, so we can usually see what the person who signed an older trust meant to accomplish, even when the language is dated. Attorney Romelia “DeDe” Soto stays involved in your administration until the last asset is distributed, backed by more than 20 years of legal experience.
Related Services in Huntington Beach
Trust Administration in Other Locations
- Trust Administration in Newport Beach
- Trust Administration in Costa Mesa
- Trust Administration in Irvine
- Trust Administration in Riverside
- Trust Administration in San Bernardino
- Trust Administration in Laguna Beach
- Trust Administration in Santa Ana
- Trust Administration in Anaheim
- Trust Administration in Orange County
Directions to Our Office From Huntington Beach
Get Guidance as a Successor Trustee
Before your first deadline arrives, call (949) 945-0059 to go over your next steps as trustee, or contact us online.