Administering Luxury Assets in Mulholland Park & Tarzana Hills
Tarzana's luxury enclaves—from the equestrian estates of Melody Acres to the guarded gates of Mulholland Park—require a sophisticated level of administration. In 2025, a Successor Trustee's duty of "prudence" is measured by their ability to protect the trust's net value. This involves more than just reading the document; it requires surgical execution of the Uniform Principal and Income Act and the Uniform Prudent Investor Act.
As your Tarzana trust administration lawyer, we provide the technical precision required by the Stanley Mosk Courthouse and the Los Angeles County Probate Division. While trust administration is designed to be a private process, any administrative errors can trigger a lawsuit that forces the trust into a public and expensive court battle.
Proposition 19: The Property Tax Threat for Tarzana Heirs
If you are administering a trust that includes a primary residence south of Ventura Boulevard, you are on a strict clock. Under California Proposition 19, if the children do not move into the parent's home as their primary residence within 12 months, the property tax will be reassessed to market value. The 2025 exclusion cap is $1,044,586—meaning for a $2M home in Silver Hawk Ridge or Tarzana Hills, the heirs could face annual taxes jumping from $4,000 to $25,000 permanently. We specialize in "Prop 19 Defense," ensuring all filings with the LA County Assessor are completed accurately to protect the family legacy.
Trustee Personal Liability Protection
Successor trustees in Tarzana 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. In Tarzana's high-stakes real estate market, beneficiaries are often sophisticated and litigious. If a trustee fails to provide a Probate Code Section 16060 accounting or makes an "unproductive" investment choice, they can be held personally liable (surcharged) for the loss. We provide attorney-verified accountings and distribution waivers to ensure that when you finally distribute the trust assets, you are legally released from all future claims.
The 2026 Federal Estate Tax Sunset
On January 1, 2026, federal estate tax exemptions are scheduled to revert from $13.99M to approximately $7M. For Tarzana families with significant real estate, business interests, or investment portfolios, 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.
The Heggstad Rescue: When Assets are Left Out
Did you find a Tarzana property that was never formally transferred into the trust? Before you file for a full 18-month probate, let us evaluate if we can file a Heggstad Petition (Probate Code Section 850). We have successfully rescued millions in Tarzana real estate by asking the court to retroactively "fund" the trust, saving heirs significant time and money. These petitions are filed at the Stanley Mosk Courthouse in downtown Los Angeles.
Critical Trustee Deadlines for Tarzana 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 LA County Assessor
- 12 Months: Prop 19 exclusion deadline for primary residence
- Immediate: Obtain Trust Tax ID (EIN) from IRS
