Fiduciary Duty & Technical Execution in the "Good Land"
Goleta successor trustees often manage high-equity assets including residential real estate, agricultural land, and tech-sector stock options from UCSB-affiliated startups. In 2025, your "Duty of Prudence" requires immediate action. The first 60 days following a settlor's death determine your personal liability level for the rest of the administration.
As your Goleta trust administration lawyer, we provide a full-service technical roadmap:
- Probate Code § 16061.7 Notices: Formally notifying all heirs at law to trigger the 120-day limit for trust contests—your primary defense against litigation.
- SS-4 Tax ID Acquisition: Securing a new EIN from the IRS to move the trust from the decedent's social security number.
- Certification of Trust: Preparing the documents to allow you to transact with private banks and the Santa Barbara County Recorder.
- 100% Step-up in Basis: Coordinating with specialized Probate Referees to establish date-of-death values, erasing potential capital gains tax on millions in appreciation.
The 2026 Federal Estate Tax and Goleta Wealth Preservation
On January 1, 2026, the federal estate tax exemption is scheduled to decrease from $13.99M to approximately $7M per individual. For Goleta families with significant real estate holdings, tech equity, or agricultural land, trust administration must include strategic Portability (Form 706) elections. This locks in the deceased spouse's exemption for the survivor, protecting the family from a future 40% tax hit as assets continue to appreciate.
Prop 19 Defense for Goleta Neighborhoods
In 2025, inheriting a home in San Antonio Creek or Brandon Park carries a significant tax risk. Under Proposition 19, the intergenerational exclusion is capped at $1,044,586 over the parent's factored base year value. If a Successor Trustee fails to properly coordinate the child's residency and the Santa Barbara County Assessor filing within one year, a Goleta property tax bill could jump from $9,000 to over $25,000 annually. We manage these filings concurrently with the trust administration to protect the heirs' financial legacy.
Agricultural Land & Williamson Act Considerations
Many Goleta families hold agricultural land near Winchester Canyon or Ellwood that may be subject to Williamson Act contracts. These contracts provide reduced property tax assessments in exchange for agricultural use restrictions. During trust administration, we coordinate with the Santa Barbara County Assessor to ensure the Williamson Act benefits are preserved for heirs while still securing the maximum Step-up in Basis for future capital gains protection.
Heggstad Petitions: Rescuing Unfunded Goleta Assets
Settlors frequently forget to transfer a high-value asset—such as a brokerage account or a home near Ellwood—into their living trust. Normally, this would require a public probate at the Anacapa Division Courthouse. However, we specialize in Heggstad Petitions (Probate Code § 850). By providing evidence of the settlor's intent, we ask the court to declare the asset part of the trust retroactively, bypassing the 15-month probate timeline and public disclosure of family wealth.
Accounting & Distribution: Total Legal Closure
The number one reason Goleta trustees are sued is a lack of financial transparency. Under Probate Code § 16062, beneficiaries have a right to a formal accounting. Before distributing a single dollar to beneficiaries, you must provide a formal trust accounting and obtain a signed beneficiary release. This release is your legal closure; without it, you can be sued years later. We prepare attorney-verified accountings and distribution agreements to ensure your job as trustee ends with total legal protection.
Critical Trustee Deadlines for Goleta Estates
Missing these statutory deadlines can expose you to personal liability:
- 60 Days: Serve 16061.7 Notice to all beneficiaries and heirs
- 90 Days: Notify DHCS (Medi-Cal) if applicable
- 150 Days: File Notice of Death with Santa Barbara County Assessor
- 12 Months: Prop 19 exclusion deadline for primary residence
- Immediate: Obtain Trust Tax ID (EIN) from IRS
