Trust & Estate Administration in California. Legal Guidance for Fiduciaries
A trustee is bound by the terms of the trust and their fiduciary duty to administer a trust, in accordance with the law and for the benefit of trust beneficiaries. At the same time, even when the law is clear, life’s complexities often make trustee’s decisions far from obvious.
- The trust’s lifetime beneficiary wishes to keep the trust-owned family business, while the contingent remainder beneficiaries wish to sell it while the market is high.
- A trust-owned business qualified for the IRC 6166 election, but no longer does; the surviving spouse wants to sell the business and business-owned real estate and to buy fixed income, while the remainder beneficiaries wish for the trustee to pursue a 1031 strategy
- A GST trust’s inclusion ratio changed, unbeknownst to remainder beneficiaries, due to additional assets contributed to the trust by the income beneficiary, resulting in a new mix of assets and substantial tax consequences, unexpected by all.
We advise fiduciaries statewide in trust administration, protecting trustees and executors from liability, while keeping an eye on optimal wealth transfer solutions for beneficiaries and seeking to minimize litigation risks. If contested matters, we vigorously advocate for our clients’ interests, while also making certain that all legal requirements of the administration
What Administration Involves
- Notifying heirs, beneficiaries and interested persons of estate planning documents, and any amendments
- Providing notice to creditors
- Assisting the fiduciary in marshalling the assets, including real estate and financial assets
- Providing an Inventory and Appraisal
- Paying debts, taxes, and final expenses
- Prepare legal filings and accountings
- Providing preliminary distributions
- Resolving ambiguities and disputes
- Providing final distributions
Whether advising a fiduciary in administering a complex Generation Skipping Transfer Tax Trust, administering a simple probate-avoidance trust, or administering probate estate, we provide clarity and confidence in the wealth transfer process.
Fiduciary Support & Risk Mitigation
- Guidance in construing estate planning documents
- Avoiding breaching of fiduciary duties in the course of trust administration
- Oversight of preparation of Probate-compliant accountings
- File various petitions with probate court or instructions or approval of fiduciary acts
- Advice on asset acquisition and disposition, and potential tax consequences
- Collaboration with the trustee’s or family’s CPAs, tax advisors, and financial advisors
Tax Strategy & Financial Oversight
- Inventory assets & monitor transactions
- Coordinate with CPAs & financial advisors
- Manage debts & final expenses
- File estate & gift tax returns
- Plan tax-efficient distributions
- Draft preliminary distribution agreements and coordinate with beneficiaries
Litigation & Dispute Resolution
Conflicts can complicate administration. Our litigation team offers:
- Representation at all stages of trust & estate disputes
- Mediation and settlement negotiation
- Enforcement and interpretation petitions
Where We Work and Who We Serve
Serving San Diego, Los Angeles & clients statewide, especially those with:
- Trustees and beneficiaries
- Family-owned businesses
- Complex family structures
- Real estate holdings
- Charitable trusts
FAQ Highlights
What are a trustee’s or executor’s core duties?
Managing assets, paying debts, filing taxes, and distributing property.
Can I be held personally liable?
Yes, errors may lead to personal liability. We help clients avoid breaches of fiduciary duties, and avoid liability.
What if beneficiaries don’t agree?
We offer litigation and mediation to resolve disputes.
How long does administration take?
A simple trust administration takes up to twelve months in most cases, depending on complexity and asset types. More complex trusts, may take a year – or even multiple years – depending on the terms of the trust and applicable tax issues. A typical probate proceeding in San Diego County takes up to two years.
