California Trust Attorney in Chino, Orange County and the Inland Empire

Estate settlement is the process that transfers assets from the decedent to the beneficiaries. The first step in this process is to determine which assets were held by the deceased and place a value on those assets, typically through an appraisal. Once value is established and the property/assets are transferred, the estate settlement process also encompasses and handles any taxes that may be due during the transfer of property.

When property is involved, assets must be retitled in the name of the trustees. An Affidavit of Death of Trustee and Consent of Successor Trustee must be recorded for each property held in the living trust. The Affidavit must be recorded with a certified copy of the death certificate.  At the same time, a Preliminary Change of Ownership form must also be filed and recorded along with the Affidavit.

In the case that the living trust transfers the ownership of property from parents to children exempt from property tax reassessment, then an exemption form must also be filled out and recorded with the county assessor. When working with a trust administration attorney, all of these forms will be filed on your behalf.

In the event that a dispute arises during the trust administration process, trust litigation may become necessary. Violation of the Terms of the Trust, disputes surrounding the Terms, disputes over the trust’s validity and violations of trustee duties are common causes for trust litigation. To ensure that the wishes of the decedent are properly observed and your own rights are not overlooked, look to an experienced trust litigation attorney to handle your case.

The administration of a trust often includes the sale of one or more properties. By using our firm, you will get the benefit of our real estate services. Selling a property that is part of a trust is very different than selling property owned by an individual. Our experienced real estate professionals can assist you with the sale and ensure that you comply with the heightened requirements.

A trustee is someone responsible for managing the terms of the trust and distributing assets. Depending on whether the trust was revocable or irrevocable, the successor trustee may be appointed or involved in the trust at different times. With a revocable trust, the trustee is most often times the grantor, and only in the event of their death or inability to carry out their duties, will a successor trustee step in. With an irrevocable trust, the grantor must appoint another trustee when the trust is formed. In both cases, however, the duties of the successor trustee only changes in the event of the death or incapacitation of the trustee.

The duties of a successor trustee can also differ based on the circumstance of death or incapacitation; however, in either case the main roles of a trustee are to communicate to the beneficiaries and uphold the terms of the trust.

As the successor of a trust, you have an obligation to prudently manage the trust assets on behalf of the beneficiaries, but that doesn’t mean you have to do it alone. A trust administration attorney can consult with you on your responsibilities as successor trustee and help with the trust administration process, accounting and investing.

As a successor trustee, you are entitled to reasonable compensation for the duties you perform. Managing and administering a trust is time-consuming and comprehensive, making it appropriate to be compensated for your time. Compensation will be determined based on the size and complexity of the estate, as well as the time spent managing it. The trustee fees are taxable compensation, but can also be waived if you choose. Speak to a trust administration attorney before waiving your fees so you can fully understand the scope of your duties.

During the trust administration process, a number of tax returns must be filed. This can be especially challenging if the decedent had been ill during the last few years of their life. Collecting prior year’s returns and filing extensions may also be necessary if tax information was not readily available.

Tax returns must also be filed if the estate exceeds the estate tax exemption amount, and even in the case that the estate is exempt from state tax, tax returns may still need to be filed. In addition, the trust is also it’s on entity, requiring a tax identification number from the IRS. It is also important to note that when distributing assets, the beneficiaries may be in different tax brackets, which also needs to be closely considered during administration.

Tax management and tax issues that may arise during trust administration can be overwhelming. Consulting with a trust administration attorney who also specializes in tax management can help simplify the process.

Administering a trust comes with a lot of moving parts and paperwork. In fact the first step in trust administration is a required probate code notice to all heirs and trust beneficiaries of the decedent within 60 days of the death. From tax filing to court forms, you want to be sure that all of the proper documents are filed and recorded during the trust administration process. With an experienced trust administration attorney, you can rest assured that all legal documents will be recorded on your behalf in a timely manner.