Trustee Duties in California: What a Successor Trustee Must Do During Trust Administration After Death

Upon the settlor’s death, a living trust usually becomes irrevocable under California law. This transition is significant because the trustee’s role shifts from following the settlor’s instructions to administering the trust solely in the beneficiaries’ interests.

The trustee is no longer subject to the direction of the person who created the trust and must instead follow the trust instrument and statutory duties.

At this stage, the successor trustee must take control of the trust assets, begin administering in accordance with the terms of the trust, and prepare to comply with notice requirements.

Trust administration is the process by which debts are addressed, assets are managed, and eventual distributions are made. Even if the trust avoids probate court, California probate law still governs many aspects of trustee conduct.

One of the most important statutory obligations within the first 60 days is to provide formal notice. California Probate Code section 16061.7 requires that, when a trust becomes irrevocable due to the settlor’s death, the trustee must serve notice on specific individuals.

The successor trustee has 60 days from the settlor’s death or from the date the new trustee becomes aware that the trust is irrevocable to send notice.

The notice must be provided to:

• All known trust beneficiaries
• All heirs at law of the deceased settlor

This notice must include a copy of the trust terms or information on how to request a copy of the trust document. The statute mandates specific language and disclosures, and failure to comply can delay or invalidate the deadline to contest the trust.

Before taking any substantive action, the trustee must review the trust document carefully. The trust’s instructions govern how assets are managed, when distributions occur, and the trustee’s powers. Reviewing the trust allows the trustee to confirm whether they were properly named as a successor trustee and whether any conditions apply to their authority.

California law requires trustees to administer the trust in accordance with its terms, unless those terms conflict with mandatory provisions of the California Probate Code.

Understanding the trust instrument early helps the trustee avoid missteps, especially when multiple beneficiaries and heirs are involved.

Another early duty involves locating and protecting assets. Trust assets may include real property, bank accounts, investment accounts, business interests, or trust funds.

The trustee must determine what the trust owns and ensure that assets are not lost, misused, or improperly accessed.

Creating an inventory is a foundational step in the administration process. Even if distributions will not occur for months, identifying what the trust owns allows the trustee to manage risk, maintain accurate records, and meet future accounting obligations. This step also supports transparency and protects beneficiaries’ interests.

From the moment the trust becomes irrevocable, the trustee owes a fiduciary duty to the beneficiaries. This fiduciary duty requires the trustee to act impartially, prudently, and solely in the beneficiaries’ interests.

Self-dealing, favoritism, or failure to comply with the trust terms can expose the trustee to liability and undue influence, potentially resulting in trust litigation.

California Probate Code sections governing trustee duties require honesty, loyalty, and reasonable care. Even routine decisions, such as paying expenses or managing trust funds, must be made with caution. Acting as a successor trustee without legal guidance can be overwhelming, especially during the emotionally charged period following the settlor’s death.

OC Trusts Lawyer, Max Alavi, specializes in beneficiary representation to ensure trusts and assets are properly handled.

Yes. One of the main purposes of the statutory notice is to trigger the deadline to contest the trust. Once notice is properly served under Probate Code 16061.7, beneficiaries and heirs generally have 120 days to bring an action to contest the trust.

If notice is not sent correctly, that deadline may never begin properly. This exposes the trustee and the trust to prolonged uncertainty and potential litigation.

Proper notice protects both the trustee and the trust administration process by creating a clear legal timeline.

1. What are the first steps a successor trustee should take after a settlor dies in California?

The first 60 days are critical. A successor trustee must immediately review the trust document to understand their authority, identify and secure trust assets (such as bank accounts and real estate), and prepare an inventory. Most importantly, they must begin the process of notifying beneficiaries and heirs as required by the California Probate Code.

2. What is a Notification of Trustee under California Probate Code 16061.7?

This is a mandatory legal notice that a successor trustee must serve when a trust becomes irrevocable (usually upon the death of the settlor). The notice informs beneficiaries and heirs at law that the trust is being administered, provides the trustee’s contact information, and alerts them to their right to request a copy of the trust terms.

3. How long does a trustee have to notify beneficiaries after a death in California?

Under California law, a successor trustee has 60 days from the date of the settlor’s death (or the date they became aware of the death) to serve the formal notice to all required beneficiaries and heirs.

4. Who is entitled to a copy of the trust after the settlor dies?

According to California Probate Code, all named beneficiaries in the trust and all “heirs at law” (legal relatives who would inherit if there were no will or trust) are entitled to receive notice and can request a complete copy of the trust terms and any amendments.

5. How long do beneficiaries have to contest a trust in California?

Once the trustee serves the formal notice required by Probate Code Section 16061.7, beneficiaries and heirs typically have 120 days to file a trust contest in court. If the notice is not served correctly, this window of time may stay open much longer, leaving the trust vulnerable to litigation.

6. Does a trust have to go through probate court in California?

One of the primary benefits of a trust is that it is designed to avoid the formal probate court process. However, the trustee must still follow California Probate Code requirements for administration. While the court is not usually involved in the day-to-day distribution, legal disputes or “trust contests” may still require court intervention.

7. What are the fiduciary duties of a successor trustee?

A trustee has a legal “fiduciary duty” to act with the highest’s degree of loyalty, honesty, and care. This includes acting impartially (not favoring one beneficiary over another), avoiding self-dealing, protecting trust assets, and following the specific instructions laid out in the trust document.

8. What happens if a trustee fails to follow California notice requirements?

If a trustee fails to send the required notice within the 60-day window, they may be held liable for damages, attorney fees, and costs resulting from the delay. Additionally, the statute of limitations to contest the trust will not start, meaning the trustee may be unable to safely distribute assets for a much longer period due to the risk of future lawsuits.