High-Net-Worth Trust Settlement: The First 90 Days in 93110
Hope Ranch estates often hold unique multi-generational assets: equestrian facilities on Las Palmas, coastal compounds on Marina Drive, and private water rights. In 2025, your "Duty of Prudence" is measured by your ability to protect the trust's net value against tax reassessment and federal estate tax exposure.
As your Hope Ranch trust administration lawyer, we execute the following technical roadmap:
- Notice to Heirs & Beneficiaries: Issuing the legally required 16061.7 notices within 60 days to trigger the 120-day limit for trust contests—your primary defense against litigation.
- Certification of Trust: Preparing the technical documents to allow you to transact with private banks, the Hope Ranch Park Homeowners Association, and the Santa Barbara County Recorder.
- SS-4 Tax ID Acquisition: Securing a new EIN from the IRS to move the trust from the decedent's social security number to irrevocable status.
- 100% Step-up in Basis: Coordinating with specialized Santa Barbara Probate Referees to establish date-of-death values—including equestrian facilities and beach rights—erasing potential capital gains tax on millions in appreciation.
The 2026 Federal Estate Tax and Hope Ranch Wealth Preservation
On January 1, 2026, federal estate tax exemptions are scheduled to decrease from $13.99M to approximately $7M per individual. For Hope Ranch families with estates exceeding $15M—which includes most Las Palmas and Marina Drive properties—this creates potential exposure to a 40% federal estate tax on amounts above the exemption. If a married settlor dies in 2025, we file Form 706 to elect "Portability" of the unused exemption to the surviving spouse—potentially preserving up to $27.98M in combined tax-free transfers. For trustees managing Hope Ranch's most valuable estates, this planning is the difference between preserving generational wealth and a multi-million dollar federal tax liability.
Private Beach & Equestrian Trail Rights Valuations
Hope Ranch is one of the few communities in California with 23 miles of private bridle trails and exclusive beach access via private keycards. These intangible assets—beach access rights, equestrian trail easements, and HOA memberships—significantly enhance property value by $500,000 to $1M+. Many appraisers overlook these rights, but they are critical for establishing the true Step-up in Basis. We coordinate with specialized Santa Barbara Probate Referees who understand the unique economics of Hope Ranch to ensure these rights are accurately reflected—potentially saving heirs millions in future capital gains taxes when properties are eventually sold.
Prop 19 Defense: Protecting the Ranch Tax Base
In 2025, inheriting property in the prestigious Hope Ranch enclave carries a massive property tax risk. Under Proposition 19, the intergenerational exclusion is capped at $1,044,586 over the parent's original taxable base. On an $8M property with a 1980s tax base of $300,000, a reassessment could increase annual property taxes from $5,000 to over $85,000. If a child moves in as their primary residence within one year, they may preserve the parent's tax base (plus the cap). We manage these filings concurrently with the Santa Barbara County Assessor to protect multi-generational Hope Ranch estates.
Heggstad Petitions: Rescuing Unfunded Hope Ranch Assets
It is common for Hope Ranch settlors to leave a new investment property, equestrian facility, or brokerage account out of their trust. Normally, this would trigger a public probate at the Anacapa Division Courthouse. On a $15M estate, statutory probate fees alone can exceed $180,000. We specialize in Heggstad Petitions (Probate Code § 850). By providing evidence of the settlor's intent, we can often obtain a court order declaring the asset part of the trust retroactively—avoiding the 15-month probate timeline, massive fees, and public disclosure of family wealth.
Accounting & Distribution: Total Legal Closure
The number one reason Hope Ranch trustees are sued is a lack of financial transparency. On a $15M estate, errors like distributing assets too early, missing the Medi-Cal (DHCS) notification deadline, or failing to provide a formal accounting can lead to surcharges exceeding $500,000. Under Probate Code § 16062, beneficiaries have a right to a formal accounting. We prepare attorney-verified accountings and obtain signed beneficiary releases before any final distributions are made, ensuring your job as trustee ends with total legal closure.
Critical Trustee Deadlines for Hope Ranch 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
- 9 Months: Form 706 deadline for portability election
- Immediate: Obtain Trust Tax ID (EIN) from IRS
