Trust Administration · San Jose, California
Trust administration, step by step.
When the settlor of a California revocable trust dies, the successor trustee inherits a list of duties with real deadlines. Bob has guided trustees through every step since 1980, from the 60-day notice to the final distribution.
Trust administration is the process the successor trustee of a California revocable trust follows after the settlor dies. The trustee sends the 60-day notice under Probate Code Section 16061.7, takes control of the assets, files the final tax returns, prepares an accounting, funds any sub-trusts, and distributes to the beneficiaries. It is not court supervised in most cases. Bob represents successor trustees through every step.
Key Deadlines
Three numbers that govern the timeline.
60days
To send the notice
The trustee has 60 days from the settlor’s death to send the Probate Code 16061.7 notice to every heir and named beneficiary.
120days
Contest window
Once the notice goes out, a beneficiary has 120 days to contest the trust. Without the notice, that window never closes.
9–18months
Typical timeline
From the settlor’s death to final distribution, most California trust administrations run 9 to 18 months.
If you were just told you are a successor trustee, start the clock.
The 60-day Probate Code 16061.7 notice is the most time-sensitive obligation in a California trust administration. It goes to every heir and named beneficiary, and it triggers the 120-day window in which any of them can contest the trust. Miss the notice and that window stays open indefinitely. This is the first thing Bob sends out for a new administration, so it is the first call to make.
The Short Version
What trust administration is.
A California revocable living trust becomes irrevocable when the settlor dies. At that moment the successor trustee named in the trust takes legal control of the assets and steps into a list of fiduciary duties owed to the beneficiaries. Carrying out those duties is trust administration.
Unlike California probate, it is not court supervised in most cases. The trustee handles the work directly, with counsel, without filing a petition. That is the whole point of having a trust: avoid the court process, keep the family’s affairs private, move faster.
But not court supervised does not mean simple. The duties are extensive, the deadlines are real, and the trustee is personally liable for missed steps that harm the beneficiaries. The cost of counsel is small next to the cost of getting one of these wrong.
The Process
The administration, end to end.
Ten steps over roughly 9 to 18 months, grouped into three phases. Bob handles the steps that carry liability and keeps you moving on the rest.
Send the 16061.7 notice
To every heir and named beneficiary, within 60 days. The contents are set by statute.
Take control of the assets
Secure the home, redirect the mail, gather the account statements, confirm titling.
Get a tax ID for the trust
The trust files its own returns now; the settlor’s Social Security number can no longer be used.
Inventory and value everything
Date-of-death values for every asset. Real property appraised by a qualified appraiser.
Pay debts and final bills
Mortgage, property taxes, cards, utilities, medical bills, paid out of trust assets.
File the final income tax returns
The decedent’s final Form 1040 and California Form 540 for the year of death.
File trust and estate tax returns
Fiduciary returns (Form 1041 and California Form 541), plus a Form 706 if the estate is large enough.
Prepare the accounting
Under Probate Code 16062 unless the trust waives it. Receipts, disbursements, and balances on hand.
Fund the sub-trusts
Survivor’s, bypass or QTIP, and special needs sub-trusts, each with its own funding paperwork.
Distribute and close
Outright or in continued trust as the document directs. Obtain signed receipts and releases.
Why This Is Not Probate
The same estate, a very different path.
A funded trust is what keeps the estate out of court. Trust administration covers the same ground as probate, privately and on the family’s timeline.
California probate
Court supervised- CourtA judge supervises the whole proceeding.
- TimelineCommonly 9 to 18 months, often longer.
- CostStatutory fees of roughly $46,000 on a $1M estate.
- PrivacyFiled in the public court record.
Trust administration
No court- CourtNo court supervision in most cases.
- TimelineHandled directly with counsel, on your schedule.
- CostHourly or fixed fee. No statutory percentage scale.
- PrivacyStays between the family and the trustee.
Attorney fees for trust administration are charged hourly or as a fixed fee, not on the percentage scale that Probate Code Section 10810 sets for probate. For most California estates the all-in cost is a fraction of what probate would have been. Bob gives you a written fee estimate at the initial meeting, after reviewing the trust and the asset list.
A Common Surprise
When the trust was not fully funded.
The most common surprise during administration: an asset the family thought was in the trust turns out to be in the settlor’s individual name. The home deed was never recorded into the trust. The brokerage account was never retitled. The LLC interest was never assigned.
Assets in the settlor’s individual name at death do not pass through the trust. Without a fix, they need probate. Bob handles both the administration and the fix in a single engagement.
The fix: a Heggstad petition
A Heggstad petition under California Probate Code Section 850 asks a judge to confirm that the asset belongs to the trust, based on the schedule of assets, the pour-over will, and other evidence of the settlor’s intent. It typically resolves in 60 to 120 days and avoids a full probate proceeding for the asset.
Read the Heggstad petitions guideSub-Trust Funding
The trust may call for sub-trusts.
Many California trusts split into sub-trusts after a death. The trustee’s job is not just to distribute outright; it is to set up the sub-trusts the document requires, each with its own paperwork and its own tax and timing rules.
Survivor’s trust
At the first death of a married couple, the survivor’s share is allocated to a sub-trust the survivor controls.
Bypass or QTIP sub-trust
Tax-driven sub-trusts that hold the deceased spouse’s share to preserve estate-tax exemptions or to control who inherits at the second death.
Special needs sub-trust
When a beneficiary relies on Medi-Cal or SSI, their share goes into a special needs sub-trust rather than being distributed outright.
Special needs trustsLifetime trust for a beneficiary
Where the trust requires a share be held in trust for life rather than distributed, the trustee funds and administers that sub-trust.
Why Bob
Why trustees bring this to Bob.
Trust administration rewards specialization. The 60-day notice has to be drafted correctly. The accounting has to follow the format the Probate Code expects. The sub-trust funding has to satisfy the tax rules. A trustee handling this for the first time will not know what they do not know.
- Certified SpecialistState Bar of California, Estate Planning, Trust and Probate Law. Held by less than 1% of attorneys.
- Explains every stepThe work the trustee actually does, described in plain English so you stay in control.
- Handles the petitions tooWhen a Heggstad or trust modification petition is needed, Bob files it in the same engagement.
Keep Reading
Related practice areas.
Heggstad Petitions
The remedy when an asset belongs to the trust on paper but was never formally retitled. Comes up regularly during administration.
Read more
Trust Modification Petitions
When a sub-trust needs to be modified after a death, often to redirect a share into a special needs sub-trust.
Read moreTrust Administration FAQ
Common questions from California successor trustees.
Plain-language answers on the 60-day notice, the accounting, cost, timelines, and unfunded assets. If something is missing, bring it to your meeting with Bob.
Don’t see your question?
Email or call the office, or bring it to your free Preliminary Planning Session.
Ask Bob directlyTrust administration is the process the successor trustee of a California revocable trust follows after the settlor dies. The trustee gives the required 60-day notice under California Probate Code Section 16061.7, takes legal control of the trust assets, files final tax returns, pays debts, prepares an accounting, funds any sub-trusts called for by the trust, and distributes the trust to the beneficiaries. Unlike probate, trust administration does not require court supervision in most cases. Bob represents successor trustees through every step.
California Probate Code Section 16061.7 requires the successor trustee of a revocable trust to send a specific written notice to all heirs and named beneficiaries within 60 days of the settlor’s death (or within 60 days of becoming aware that the trust is irrevocable). The notice identifies the trust, names the trustee, gives the trustee’s contact information, and warns that any contest of the trust must be filed within 120 days of receipt of the notice (60 days if a copy of the trust is provided with the notice). Missing the deadline can extend the contest window indefinitely. The notice is the first thing Bob sends out for a new administration.
A typical California trust administration runs 9 to 18 months from the settlor’s death to final distribution. The minimum floor is set by the 120-day trust contest window after the 16061.7 notice and by the time required to file the final income tax returns and any estate tax return. Administrations involving real property sales, business interests, or Heggstad petitions for unfunded assets take longer. Sub-trust funding (special needs sub-trusts in particular) adds time at the end.
In rough order: send the Probate Code 16061.7 notice within 60 days; take legal control of the trust assets and secure them; obtain a tax identification number for the trust; prepare an inventory; pay valid debts; file the decedent’s final income tax return and any required fiduciary income tax returns or estate tax return; prepare an accounting (under Probate Code Section 16062 unless waived by the trust); fund any sub-trusts the trust calls for (survivor’s trust, bypass, special needs); distribute to the beneficiaries; obtain receipts and releases. The trustee also has ongoing fiduciary duties of loyalty (Probate Code Section 16002), impartiality (16003), and prudent investment (16007) throughout the engagement.
Attorney fees for trust administration in California are usually charged hourly or as a fixed fee for the engagement, not on the percentage scale that applies to probate. The cost depends on the complexity of the trust, the number and type of assets, whether real property has to be sold, whether sub-trusts have to be funded, and whether any disputes arise among beneficiaries. Trust administration is almost always less expensive than probate for the same estate. Bob gives a written fee estimate at the initial meeting after reviewing the trust and the asset list.
Most California successor trustees engage counsel because the duties are extensive, the deadlines are real, and the personal liability of the trustee for missed steps is significant. The 60-day notice, the accounting, the tax filings, and the distribution paperwork all have to be handled correctly. A defective notice can extend the trust contest window indefinitely. A defective accounting can be challenged by a beneficiary years later. Most trustees find that the cost of counsel is small compared to the cost of getting one of these steps wrong.
Common situation. The settlor signed the trust but never deeded the home over, never retitled the brokerage account, or never assigned the LLC interest. Assets that were left in the settlor’s individual name at death are not in the trust. The path forward is usually a Heggstad petition under California Probate Code Section 850 to confirm that the asset belongs to the trust. Bob handles both the trust administration and any related Heggstad petition in a single engagement. See the Heggstad page for the full process.
Probate Code Section 16062 requires the trustee to account at least annually, at termination of the trust, and on a change of trustee, unless the trust waives the requirement. Most well-drafted California revocable trusts include a waiver of the formal accounting in favor of an informal report to the beneficiaries, but the trustee’s underlying duty to keep records does not change. The accounting (or informal report) shows what came into the trust, what went out, and what is left. Beneficiaries can demand a formal court-style accounting in some circumstances even if the trust waives it.
Yes, but the window is short. After the trustee sends the Probate Code 16061.7 notice, a beneficiary or heir has 120 days to file a contest petition. If the trustee includes a copy of the trust with the notice, the window is 60 days. Without the proper notice, the contest window stays open indefinitely. Common grounds for contest include lack of capacity at the time the trust was signed or amended, undue influence by another beneficiary, fraud, or improper execution. Most trusts also include a no-contest clause that disinherits a beneficiary who unsuccessfully contests, but the no-contest clause has to be carefully drafted to be enforceable under California law.
Yes. California trust administration is governed by California Probate Code which applies uniformly across counties. Bob represents successor trustees throughout California. Plan Design Meetings happen in person at the Ross Avenue office in San Jose or by Zoom for trustees outside the immediate area. When a Heggstad or trust modification petition becomes necessary as part of the administration, Bob files in the county where the trustee lives or the property is located.
Next Step
Bring the trust and the death certificate. Bob will tell you what comes next.
The first meeting is a 60 to 90 minute conversation. Bob reviews the trust, the inventory of assets, and the family situation, identifies the immediate deadlines starting with the 60-day notice, and gives you a written fee estimate.
Bob is one of less than 1% of California attorneys certified as a specialist by the State Bar.