Trust & Probate Administration in Westlake Village, CA | Sindon Law

After you create your revocable living trust, and for the balance of your lifetime, you have little to no work to do to manage or administer your trust. You will want to review your trust every 3-5 years or so, and when life events or tax law changes occur, you may want to amend your trust to keep it up-to-date; but during your lifetime you will have little to no legal responsibilities or duties as the creator or initial trustee of your trust.

More typically, when you hear someone talking about “trust administration,” they are talking about the process of managing and distributing the trust assets of a loved one after they have died. At that time, it becomes the legal responsibility of the “successor trustee,” who is usually a surviving spouse or adult child of the trust’s creator, to honor the wishes of the creator by managing and distributing the trust’s assets according to the “terms of the trust.”

Once you have created your trust, I will work with you during your lifetime to ensure your trust remains legally effective and up to date. In the event of your death, I will also continue to work with your “successor trustee” to provide comprehensive trust administration services.

Unlike the trust’s creator, a “successor trustee” has many legal responsibilities and duties that must be carried out with precision and care to comply with legal requirements, and even if the trust administration process is informal the “successor trustee” should seek out the services of an experienced attorney to advise and counsel the trustee through the process.

When the time comes to administer your trust, I will work with your “successor trustee” step-by-step through the process:

Step 1. Trustee Guidance and Support – a “successor trustee” has significant legal responsibilities, and I provide your “successor trustee” comprehensive guidance and support, helping them navigate their duties with confidence and clarity. I help “successor trustees” in fulfilling their fiduciary duties regarding asset management, record-keeping, trust accounting and distribution, and ensuring compliance with law.

Step 2. Asset Inventory and Valuation – I will work with your “successor trustee” to compile a thorough inventory of the trust’s assets, including real estate, investments, and personal property; and to engage appraisers to ensure an accurate valuation of the trust’s assets. Accurate valuation is crucial for proper distribution and tax purposes.

Step 3. Debt Settlement and Expense Management – part of the trust administration process involves paying the debts of the decedent and expenses of the trust, and I will work with your “successor trustee” to ensure that all obligations are met in a timely manner.

Step 4. Trust Accounting and Distribution of Trust Assets – I will prepare appropriate “trust accountings” your “successor trustee” may owe to trust beneficiaries, and oversee the trustee’s distribution of trust assets to beneficiaries according to the “terms of the trust.” This process is handled with transparency and fairness, ensuring each beneficiary receives their rightful inheritance.

Step 5. Tax Filing and Compliance – trust administration involves complex income tax considerations, and I will work closely with your “successor trustee” and your accountant or tax preparer to ensure all tax filings are accurately and timely, minimizing any potential tax liabilities for the trust and its beneficiaries.

Trust administration is most usually an informal process that does not require any Court involvement. Trust administration still requires the assistance of an experienced attorney, but the time required is typically measured in months, and the costs involved are typically much less than in probate cases.

“Probate administration” is a court-supervised process which is legally required when someone dies either without a will (“intestate”), or with a will but no trust (“testate”). In almost every case, a properly designed estate plan that includes a revocable living trust can completely avoid the probate process, but if you die without a trust, your “administrator” (if you have no will) or “executor” (if you have a will) may well need to petition the Probate Court to administer your estate.

If a “probate administration” is required for your estate, I will guide and support your “administrator” or “executor” step-by-step through the process.

Step 1. Probate Petition Filing – I will prepare the initial Petition for Probate with the appropriate Court, initiating the probate process. I will appear at the hearing of the petition, notify beneficiaries and creditors, and manage all court-required documentation.

Step 2. Estate Inventory and Appraisal – I will work with your “administrator” or “executor” to create a detailed inventory of the estate’s assets and obtain necessary appraisals from Court-appointed referees where appropriate.

Step 3. Debt and Claim Resolution – I will work with your “administrator” or “executor” to manage the settlement of any debts and claims against the estate, ensuring all obligations are resolved efficiently and in accordance with legal requirements.

Step 4. Probate Accounting and Distribution of Probate Assets – once the estate’s debts and claims are provided for, I will work with your “administrator” or “executor” to file an appropriate report, probate accounting, and plan of distribution for the Court’s approval, and after the Court orders distribution, I will oversee the distribution of the remaining assets to beneficiaries transparently and equitably. After distribution, I will also secure the discharge of your “administrator” or “executor” from further liability by the Court.

Step 5. Tax Considerations. The probate process can involve significant tax obligations, and I will work with your “administrator” or “executor, in collaboration with your accountant or tax preparer and financial advisor to handle all necessary income tax filings, ensuring tax compliance and minimizing tax liabilities.

Because the probate process is court-supervised, it is much more formal than in cases of trust administration. Your “administrator” or “executor will need the assistance of an experienced attorney to guide him or her through the probate process, and the time required to complete a probate is typically longer (12-18 months), and the costs involved are typically much higher than in trust administrations. This is why we lawyers will try to influence you to set up a trust.