Technical Execution: The First 90 Days in Santa Barbara
Successor Trustees in Santa Barbara often manage complex portfolios including coastal real estate, private equity, and art collections. In 2025, your "Duty of Prudence" is under more scrutiny than ever. The transition from the decedent's Social Security Number to a permanent Irrevocable Trust Tax ID (EIN) is just the beginning.
As your Santa Barbara trust administration lawyer, we execute the following technical roadmap:
- Notice to Heirs & Beneficiaries: Issuing the legally required notices to lock in the 120-day statute of limitations on trust contests.
- Certification of Trust: Preparing the technical documents to allow you to transact with family offices, brokerage firms, and the Santa Barbara County Recorder.
- Date-of-Death Valuations: Coordinating with specialized Probate Referees to establish the 100% Step-up in Basis—erasing capital gains tax on appreciated Santa Barbara assets.
- Prop 19 Assessor Filings: Managing the intergenerational transfer exclusion with the Santa Barbara County Assessor to prevent a massive tax spike on legacy properties.
The 2026 Estate Tax Sunset and Santa Barbara Wealth Preservation
On January 1, 2026, federal estate tax exemptions are scheduled to decrease from $13.99M to approximately $7M per individual. For high-net-worth Santa Barbara families with estates exceeding this threshold, trust administration in 2025 must include strategic planning. 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 $13.99M in tax-free transfers even after the sunset. For trustees managing estates on the Upper East or Mission Canyon, this planning is the difference between a tax-free legacy and a 40% federal tax hit.
Trustee Personal Liability Protection
Successor trustees in Santa Barbara are often family members who do not realize they can be held personally liable for mistakes. Common errors like distributing assets too early, missing the Medi-Cal (DHCS) notification deadline, or failing to provide a formal accounting can lead to surcharges. Under Probate Code Section 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.
Heggstad Petitions: Rescuing Santa Barbara Assets at Anacapa Division
It is common for high-net-worth settlors to leave a new investment or a secondary residence out of their trust. Normally, this would trigger a public probate at the Anacapa Division Courthouse. However, we specialize in Heggstad Petitions (Probate Code Section 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 and public disclosure of family wealth.
Prop 19 Defense for Santa Barbara County
In 2025, inheriting property in Santa Barbara's prestigious neighborhoods carries significant property tax risk. Under Proposition 19, the exclusion cap is $1,044,586 over the existing tax base. If a Successor Trustee fails to properly coordinate the heir's residency and the Santa Barbara County Assessor filing within one year, the property tax bill on a $2.5M home could jump from $6,000 to over $25,000 annually. We manage these filings concurrently with the administration to protect the family's financial legacy.
Critical Trustee Deadlines for Santa Barbara 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
