So You've Been Named Successor Trustee: A 72-Hour Orientation Guide for California

Being named a Successor Trustee is a profound honor, but in California, it is also a position of significant legal peril. Whether you are settling a family trust involving a Glendale residence or a multi-parcel Santa Ynez ranch, the clock starts ticking the moment the Settlor passes away.

As a firm that has guided thousands of families through Trust Administration at both the Stanley Mosk Courthouse (Los Angeles) and the Anacapa Division (Santa Barbara), we know that the first 72 hours are the most critical.

Here is your orientation roadmap to ensure you fulfill your fiduciary duties and avoid personal liability.

Critical Deadlines at a Glance

Deadline	Action Required
72 Hours	Secure Assets
30 Days	Insurance Vacancy Notice
60 Days	16061.7 Notice to Beneficiaries
120 Days	Contest Window Closes
9 Months	Estate Tax Return (if required)

Phase 1: The "Safety First" Phase (Hours 1-72)

Before you look at a bank statement, you must secure the physical assets. This is your first fiduciary duty and your first opportunity to make a costly mistake.

For Los Angeles Properties

• Ensure the residence is locked and secure
• Notify the insurance carrier immediately of the death
• Many policies have "vacancy clauses" that void coverage if a house sits empty for 30+ days
• Consider hiring a house-sitter or starting mail forwarding
• Turn off automatic payments from decedent's accounts

For Santa Ynez Agricultural Land

• Ensure "continuity of care" for livestock, vineyards, or crops
• Appoint an interim manager for irrigation or feeding schedules
• Review any Williamson Act contracts for compliance requirements
• Secure equipment, vehicles, and outbuildings
• Contact existing ranch employees about continuity

72-Hour Checklist

Immediate (Day 1):

• Secure all properties
• Locate original trust documents
• Order 10-15 death certificates
• Notify insurance carriers

Within 72 Hours:

• Secure valuables (jewelry, art, cash)
• Photograph all property conditions
• Identify all bank/investment accounts
• Contact attorney for guidance

Phase 2: The Statutory Shield - Probate Code 16061.7

In California, you are legally required to serve a formal "Notice of Administration" to all heirs and beneficiaries within 60 days of the date of death.

Why This Protects You

Serving this notice triggers a 120-day statute of limitations. Once that window closes, a disgruntled family member generally cannot contest the trust on grounds of incapacity, undue influence, or improper execution. This notice is your legal shield against future litigation.

The Risk of NOT Serving Notice

Failing to serve this notice properly can leave you personally liable for "breach of fiduciary duty" years down the line. Beneficiaries may argue they were denied their right to contest, and courts take this seriously. Don't skip this step.

What the 16061.7 Notice Must Include

• Identity of the Settlor (the person who created the trust)
• Date of death
• Name and address of each trustee
• Address of the principal place of administration
• Statement that the recipient is entitled to a copy of the trust terms
• 120-day contest period notice

Learn more about your notification duties: Complete Guide to the 60-Day Notice

Phase 3: Marshaling Assets - The EIN and Affidavit

You cannot use the decedent's Social Security number to manage the trust after their death. The trust is now a separate tax entity.

Obtain a Federal Tax ID (EIN)

• Apply online at IRS.gov (free)
• Required for all trust bank accounts
• Required for filing Form 1041
• Takes about 15 minutes
• You'll receive the EIN immediately

Record Affidavit of Change of Trustee

• Record in county where real estate is located
• LA County: Los Angeles County Recorder
• SB County: Santa Barbara County Clerk-Recorder
• Establishes your authority to act
• Required before selling property

Heggstad Alert: Unfunded Assets

If you discover an asset that was intended for the trust but never titled correctly—a house that was never deeded, a bank account in the decedent's individual name—do not attempt to transfer it yourself.

You will likely need a Probate Code section 850 petition (Heggstad Petition) to rescue it from full probate. We can often complete this in 60-90 days, saving tens of thousands compared to probate. Learn about Heggstad Petitions

Phase 4: The "No-No" List for New Trustees

These mistakes can result in personal liability, removal as trustee, or even surcharge petitions where you're forced to repay losses from your own pocket:

Do NOT Commingle Funds

Never put trust money in your personal account, even temporarily. Open a dedicated trust account at a bank with the trust's EIN. Commingling is the fastest way to face breach of fiduciary duty claims.

Do NOT Distribute Assets Prematurely

Do not distribute assets until all debts, taxes, and administration expenses are accounted for. If you distribute too early and there isn't enough left to pay creditors or taxes, you may be personally liable for the shortfall.

Do NOT Ignore Beneficiary Requests

Silence is the #1 cause of Trust Litigation. Beneficiaries have a legal right to information about trust administration. Failing to communicate—even when you have nothing to report—breeds suspicion and lawsuits. Learn about Trust Litigation

Do NOT Make Self-Dealing Transactions

Never buy trust property for yourself, loan trust money to yourself, or engage in any transaction where you benefit personally. Even if the deal is "fair," self-dealing is a presumptive breach of fiduciary duty.

Do NOT Favor One Beneficiary Over Another

You have a duty of impartiality. Unless the trust specifically allows unequal treatment, you must treat all beneficiaries fairly. Giving one beneficiary information or distributions that others don't receive is a breach.

Phase 5: Regional Considerations - LA vs. Santa Barbara

Trust administration procedures vary based on where the trust assets are located:

Consideration	Los Angeles County	Santa Barbara County
Deed Recording	LA County Recorder, 12400 Imperial Hwy, Norwalk	SB County Clerk-Recorder, 1100 Anacapa St, Santa Barbara
If Heggstad Needed	Stanley Mosk Courthouse, 90-120 days typical	Anacapa Division, 60-90 days typical
Property Tax	LA County Assessor, File Prop 19 claim if applicable	SB County Assessor, Williamson Act review if agricultural
Special Considerations	High property values, Condo/HOA issues common	Agricultural land, Williamson Act compliance, Water rights

For a detailed comparison of courthouse procedures, see: Stanley Mosk vs. Anacapa Division: A Practical Guide

Complete Trust Administration Timeline

Days 1-3: Secure & Document Secure properties, locate documents, order death certificates, photograph assets, notify insurance

Days 3-14: Administrative Setup Obtain EIN, open trust bank account, record Affidavit of Change of Trustee, begin asset inventory

Days 14-60: Notice & Inventory Serve 16061.7 notice, complete asset inventory, obtain appraisals, identify debts and creditors

Days 60-180: Administration Phase Pay debts and expenses, manage investments, sell real estate if needed, file Heggstad petition if assets missing from trust

Days 180-365: Tax & Distribution File Form 1041 trust tax return, prepare final accounting, distribute assets to beneficiaries

Final: Close the Trust Obtain receipts from beneficiaries, file final tax returns, close bank accounts, retain records for 3+ years

Timeline varies based on complexity. Simple trusts may close in 6-9 months; complex estates with real estate sales or tax issues may take 12-18 months. Read our detailed timeline guide

When to Hire a Trust Administration Attorney

Not every trust administration requires an attorney, but most benefit from professional guidance. You should definitely consult an attorney if:

High Priority

• Assets weren't properly titled in the trust
• Beneficiaries are hostile or threatening litigation
• The trust owns real estate in multiple counties
• Estate may owe federal estate tax ($13.61M+ in 2024)
• Trust involves business interests

Recommended

• First time serving as trustee
• Complex asset mix (real estate, investments, retirement accounts)
• Minor or incapacitated beneficiaries
• Special needs beneficiaries
• Trust language is unclear or contradictory

Frequently Asked Questions

What is the first thing a Successor Trustee should do when the Settlor dies?

Secure the physical assets. Lock residences, secure valuables, and notify insurance carriers. For vacant properties, many insurance policies have "vacancy clauses" that can void coverage after 30 days. For agricultural land, ensure continuity of care for livestock or crops.

What is the 60-day notice requirement for California trustees?

Under Probate Code section 16061.7, Successor Trustees must serve a formal "Notice of Administration" to all heirs and beneficiaries within 60 days of the date of death. This triggers a 120-day statute of limitations for trust contests, protecting you from future challenges.

Can a Successor Trustee be held personally liable?

Yes. Successor Trustees face personal liability for breach of fiduciary duty, including failing to serve proper notices, commingling funds, making improper distributions, or failing to account to beneficiaries. This liability extends to your personal assets, not just the trust.

Do I need to get a new tax ID number for the trust?

Yes. You cannot use the decedent's Social Security number after their death. You must obtain a Federal Tax ID (EIN) for the trust from the IRS. This can be done online and is free. The trust becomes a separate tax entity after death.

What if I discover property that wasn't transferred into the trust?

Do not attempt to transfer it yourself. Property that should have been in the trust but wasn't properly titled typically requires a Heggstad Petition (Probate Code section 850) to avoid full probate. This court process can transfer the asset into the trust in 60-90 days.

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Successor Trustee Case Audit

Are you unsure if you've cleared your first 60-day legal hurdles?

Contact us for a Fiduciary Duty Review. We will review your trust document and provide a tailored timeline for your Los Angeles or Santa Barbara County administration.

What's Included:

• Review of trust document & amendments
• Asset inventory assessment
• Customized administration timeline
• Identification of potential issues (unfunded assets, tax concerns)
• Clear next steps for your specific situation

Schedule a consultation: Contact Us | Call: (818) 291-6217

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Related Resources for Successor Trustees

• Trust Administration Services - Professional guidance for LA & Santa Barbara trustees
• Heggstad Petitions - Fix unfunded assets without full probate
• 60-Day Notice Guide - Complete 16061.7 compliance guide
• Form 1041 Tax Guide - Trust income tax filing requirements
• Successor Trustee Duties Checklist - Complete step-by-step guide

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The Law Offices of Rozsa Gyene has guided thousands of families through trust administration. Whether you're settling an estate in Glendale, Pasadena, Santa Barbara, or the Santa Ynez Valley, we provide the expertise you need to fulfill your fiduciary duties with confidence.

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