Trustee Duties & Responsibilities in California

When a loved one passes away and leaves behind a living trust, the legal work is not automatically complete. While a trust helps avoid the expensive, public, and time-consuming probate process, it must still be properly administered.

If you have been named as a trustee, you now carry serious legal responsibilities under California law. Failing to meet those duties can result in personal liability, family disputes, and costly litigation.

At Elder Law Services of California, we guide trustees through every step of the trust administration process to ensure compliance, efficiency, and peace of mind.

What Is Trust Administration?

Trust administration is the legal process that occurs after the death of the settlor (creator of the trust). The trustee must:

• Notify beneficiaries and heirs
• Inventory and safeguard trust assets
• Pay debts and taxes
• Distribute assets according to the trust terms
• Avoid unnecessary tax liabilities and penalties

Although hiring an attorney is not legally required, California trust administration rules are complex. One mistake can expose a trustee to personal financial liability.

How to Start the Trust Administration Process in California

Under California Probate Code §16061.7, trustees must send formal legal notice of the settlor’s death to all heirs and beneficiaries.

Important Deadlines:

• Within 60 days of the settlor’s death: Trustee must mail required notices.
• Within 120 days of receiving notice: Beneficiaries may file a trust contest.
• If proper notice is NOT sent: The statute of limitations can extend up to four years in certain cases.

Failure to properly provide notice is one of the most common — and costly — mistakes trustees make when handling matters without legal guidance.

California Trust Notice Requirements

The required notice must:

• Be served to all heirs and beneficiaries
• Be mailed to the last known address or delivered personally
• Identify the settlor and date of death
• Provide the trustee’s mailing address and telephone number
• Inform recipients of their right to request a full copy of the trust

If notice is incomplete or improperly served, the trustee can be held legally responsible.

Core Fiduciary Duties of a California Trustee

California trustees owe strict fiduciary duties to beneficiaries, including:

1. Duty of Loyalty

Act solely in the best interest of the beneficiaries.

2. Duty of Impartiality

Treat all beneficiaries fairly and avoid favoritism.

3. Duty to Avoid Conflicts of Interest

No self-dealing or personal benefit from trust assets.

4. Duty to Account

Provide accurate financial reporting upon request.

5. Duty to Protect and Preserve Assets

Safeguard real estate, investments, and property.

6. Duty to Follow the Trust Terms

Carry out the trust instructions exactly as written.

When real property is involved — which is common in California — additional legal and tax considerations arise when selling or transferring assets.

Why You Should Have an Attorney Assist with Trust Administration

Trust administration is typically faster and less expensive than probate — but only if handled properly.

Working with an experienced California trust administration attorney helps:

• Prevent costly mistakes
• Avoid unnecessary tax exposure
• Reduce risk of beneficiary disputes
• Ensure compliance with California Probate Code
• Provide protection from personal liability

If you have been named trustee, you should not navigate this process alone.

Frequently Asked Questions (FAQs)