If someone died with a living trust, then a trust administration is needed to transfer trust property to trust beneficiaries. Kugelman Law trust administration attorneys in California can assist with all aspects of trust administration.
Beginning Trust Administration
The named successor trustee of a trust should get started on administering the trust within 30-60 days following the death of the trust's creator (the "trustor"). It starts with sending notice of trust administration to all the trust's beneficiaries and the decedent's legal heirs.
This notice lets everyone know who the trustee is and how long they have to contest the trust if they choose to do so. A probate administration may also be needed in conjunction with a trust administration if the decedent left an asset out of the trust.
Trust Administration Process
A trust administration starts with initial notice to trust beneficiaries and the decedent's legal heirs. Once the initial notice is sent, then the trustee may start collecting trust assets and readying them for distribution to the trust's beneficiaries.
During that time, the trustee will be required to maintain a detailed accounting of all expenditures and actions taken as trustee. This accounting will be delivered to the trust's beneficiaries along with their proposed distribution according to the trust.
Trust Administration Tax Consequences
There are potential property tax considerations if real estate is not transferred in a timely manner. Also, trustees must file two different types of tax returns: an individual return for the decedent and a return for the trust. These need to be filed to avoid scrutiny from the IRS and California Franchise Tax Board (FTB).
That is why it’s advantageous to hire Kugelman Law tax and estate planning attorneys in California to help ensure both the tax and estate plan aspects of trust administration are handled properly and efficiently.