A Law Firm Providing Professional Support In Trust Administration
When the creator of a trust passes away, the trustee will likely encounter several challenges as they administer the trust. Because trust administration is a complex area of law, trustees often benefit from working alongside a skilled attorney to ensure that they fulfill their role properly.
At Frisella Neilson, APC, in San Diego, our lawyers are experienced in trust administration and California estate law. We frequently assist trust administrators with their duties. As a trustee, you can expect our attorneys to remain attentive to the terms of the trust, relevant probate law and your rights and responsibilities as a trustee.
What Types Of Issues Do Trustees Face?
Many trustees do not have prior experience in trust administration. Furthermore, they are often trying to execute their duties while also processing grief related to the loss of their loved one. Therefore, it is generally advisable to rely on professional legal guidance if you are a trustee.
Before you can distribute trust assets to beneficiaries, you will need to address several administrative matters such as:
- Maintaining and protecting trust assets
- Retaining records of the assets, income and transactions
- Notifying beneficiaries
- Settling necessary debts
- Paying trust taxes and filing a tax return
Our lawyers at Frisella Neilson, APC, provide comprehensive guidance in these and other matters. In addition, we can represent trustees in probate court and litigation. Our extensive experience in trust law allows trustees to move forward with confidence.
What are the responsibilities of a trustee in California?
Trustees shoulder a significant responsibility: managing assets within a trust for its named beneficiaries. As you may expect, this requires a high standard of care and adherence to strict fiduciary duties. In California, these duties include:
- Follow the trust document: Trustees must act according to the trust’s terms, which outline how assets should be invested, managed and distributed.
- Practice loyalty and impartiality: Trustees must prioritize the interests of the beneficiaries above their own and treat them all fairly if there are multiple beneficiaries.
- Make prudent investments: Trustees have a duty to invest trust assets wisely, considering potential risks and returns.
- Keep careful records: Trustees must maintain detailed records of trust activities, including income, expenses and asset valuations.
- Communicate with beneficiaries. Trustees must keep all estate beneficiaries reasonably informed about administration.
Complying with these responsibilities can prevent many legal headaches during your term as a trustee.
What powers do trustees have in California?
To help ensure the effective management of trust assets, the California Probate Code grants trustees specific powers. They may include :
- Invest and manage assets: They may buy, sell or exchange trust property to make it productive and generate income for beneficiaries.
- Distribute assets: They can distribute assets to beneficiaries at designated times or upon certain conditions, per the trust terms.
- Defend the trust: Trustees have the authority to take legal action in defense of trust assets.
It is important to note that these are just a few examples, and the specific powers bestowed upon trustees will vary depending on the individual trust.
Is there a deadline for distributing trust assets in California?
The timeframe for the distribution of assets in a trust usually depends on its terms. It may include a specific date for asset distribution or tie it to an event or milestone.
Trusts offer varied timelines for asset distribution. Revocable trusts become irrevocable upon death, typically settling within a year or two. Conversely, irrevocable trusts are designed for long-term asset protection and may not have a definitive closure period, often remaining open to serve ongoing purposes.
A reasonable timeframe will be considered based on the trust’s purpose and complexity if the document does not address timing. Our lawyers are well-versed in California trust law and can help expedite the trust administration process.
Talk To Our San Diego Trust Administration Attorneys
Trust administration is a serious legal obligation. As a trustee, it is critical to protect the assets that were entrusted to you. Our attorneys have the knowledge and experience to help you with records, complex assets, creditors and beneficiaries. To schedule an initial consultation, call us at 866-334-2614 or email the firm.