Living Trust Administration After Death of an Owner
When an owner of a living trust dies (whether there is one owner, or two), the law requires the person who is the successor trustree named in the trust to administer the trust. Trust administration is similar to probate, but without the need for continuous involvement of the Probate Court. It involves identifying the assets, paying the debts of the deceased, filing a final income tax return for the deceased and paying any gift or estate tax owed, and distributing the assets in the way the trust requires.
Most successor trustees
find they need help when faced
with the serious fiduciary responsibilities
involved with California trust
administration of living trusts.
This is especially true for complex
living trust estates that include
real property, stock portfolios,
powers of appointment, life insurance
and business ownership.
R. Anthony Bauman, APLC, is highly experienced in all trust administration matters, including the preparation of IRS Tax Form 706, Federal Estate Tax Return. If you are trustee, successor trustee, or beneficiary under a living trust, our office can help you will all aspects of the trust administration process. Please just call for an appointment; I consider trust administration to be urgent, and will fit you in as soon as possible.
Some people believe that having a living trust avoids probate and magically whisks away all of the tasks required to administer a living trust estate. Not true. As the old saying goes, you can cut out the middleman (i.e., the Probate Court), but you cannot cut out their function. So, while a living trust may avoid probate, a living trust does not eliminate the functions of the Probate Court process. A successor trustee or co-trustees of a living trust must assume the role of the Probate Court and handle all of the following:
1. ASSETS
Marshall and inventory all assets of the trust estate as well as any assets outside the trust estate. Presumably the successor trustee is also the executor of the decedent’s pour-over will. Any assets that were not properly funded into the living trust during the decedent’s lifetime may have to be probated in the proper California Probate Court.2. DEBTS
The successor trustee must identify all creditors and pay all of debts of the decedent’s trust estate including last illness and funeral expenses.3. TAXES
In our experience, most successor trustees retain a CPA to prepare the decedent’s final income tax return (IRS Form 1040), fiduciary trust tax return (IRS Form 1041) and, if necessary, federal estate tax returns and/or federal gift tax returns (IRS Forms 706 and 709).4. DISTRIBUTION
After the debts and taxes of the trust estate have been paid, the successor trustee may distribute the remaining trust assets to the beneficiaries of the living trust. In some cases the successor trustee may make preliminary distributions to the living trust beneficiaries before the conclusion of the living trust administration.
As an experienced trust administration attorney, I use my knowledge of California probate law, federal estate and gift tax law, along with common sense and practical experience, to deliver maximum distributions to the settlor’s intended beneficiaries while paying the least amount of tax.
I help clients throughout all of California, including San Diego, Imperial County, Riverside, Los Angeles, and all other counties. You will receive personal, experienced, and understanding help directly from me. Every case in my office receives my personal attention, direction and supervision. You will speak to me directly about your case. I am the one who will return your telephone calls. My firm policy is to return every client telephone call the same day or at the latest the next day.
How to Contact R. Anthony Bauman, APLC
New clients are always welcome; and I make an effort to accommodate urgent matters. There is plenty of free parking and a convenient location just off the I-5 freeway at my Carmel Valley law firm offices, in San Diego, California. For more information or to make an appointment, please contact me either by:
Telephone: (858) 793-7007
E-mail: rbauman@sandiegotaxlaw.com
I can be reached by telephone Monday through Friday, 9:00 a.m. to 5:30 p.m. You may also use the
form below to contact me. This form is answered Monday through Friday during
the work day. Please remember that for me to become your attorney, we must first have a written attorney-client agreement signed by both of us, so please do not email any confidential information at this point. After I have reached an agreement with you, we can then exchange information freely. I look forward to helping you.
