A: The three primary duties you will have are the following: (1) the collection, safeguarding and evaluation of the Trust Estate assets; (2) the payment of debts and liabilities of the Trust; and (3) the timely distribution of the remaining Trust assets to the...
Trust And Estate Administration
Q: My husband recently passed away. How long do I have to make the portability election with the IRS?
A: On July 8, 2022, the IRS issued a new procedure that can be used to extend estate tax portability for up to five years after the death of a spouse. Having said that, in order to ensure timeliness and compliance with various tax requirements, we always recommend...
Q: My mom named me (and not my sister) the Successor Trustee of her trust. Am I required to show my sister all the records of trust expenses and transactions, or does she just have to trust me since my mom clearly trusted me to do it correctly and fairly?
A: Yes, your sister has a right to receive an accounting! Specifically, under California Probate Code §16062, after your mom passes away, you will be required to provide a full accounting not only to your sister, but to EACH beneficiary at least once per year until...
Q: What happens if someone dies and all we can find is a photocopy of the will but NOT the original?
A: In California, Probate Code Section 6124 states the general rule that if the original will cannot be located, there is a presumption that the will was intentionally destroyed. However, Probate Code Section 8223 allows a petition to be filed in order to bring forth...
Q: What are the most common types of mistakes Successor Trustees make?
A: Probate Code Section 16000 et seq. lays out ALL of the duties trustees have, and there are MANY. Having said that, the most common mistakes made by Successor Trustee are the following: selling assets for below-market value, failing to provide an accounting,...
Q: What are some of the top reasons Successor Trustees hire an attorney to represent them once they begin administering a trust?
A: Trustees owe a fiduciary duty to always act in the trust beneficiaries’ best interests. If a trustee doesn't do everything in accordance with the law, he or she can be personally liable to the beneficiaries for any financial damage the Successor Trustee's actions...
Q: My father just died without a will and his estate now needs to be probated. Who will the Court pick to be the administrator now: me or my stepmother?
A: Probate Code Section 8461 is very clear that a surviving spouse (subject to some very rare exceptions) will ALWAYS have priority over a child! If you would prefer that your child be the administrator versus your spouse, make sure to execute a valid will!
Q: My mom just died without any will and she had 4 adult children. She only owned a house worth $750,000, but it had a mortgage balance of $500,000 on it. How much will the probate fees be?
A: Statutory probate fees are based on the "gross" value of the assets, not the "net" value. Here, the fees will unfortunately be based on the $750,000 amount, and NOT the $250,000 amount of equity in the house. Therefore, the total statutory fees will be $36,000 to...
Q: What is a Small Estate Affidavit?
A: A small estate affidavit is a legal document that a person can use to collect an asset after the death of a loved one if certain conditions are met. If a decedent’s total assets are valued at less than $166,250 and at least 40 days have passed since the date of...
Q: I recently married, and I own a house and an investment account as my separate property. Will these assets pass automatically to my spouse after my death?
A: Not necessarily! Your spouse may only receive one-half or one-third of your estate when you die if you do not have a will or trust in place that specifies how the assets of your estate will be distributed. Under California law, the proportion of your separate...