When the person who made a trust dies, the trust needs to be administered by the trustee named in the document in order to manage trust property according to the trust document’s terms and for the benefit of the beneficiaries after the settlor’s death. Effective trust administration requires many steps to be done right. I recommend working with an attorney to help facilitate the process for the trustees who have a tremendous job ahead of them.
Mandatory notice to all the settlors’ heirs and beneficiaries is where trust administration starts. In California, the beneficiary has 120 days to file a trust contest after receiving notice. The beneficiary may forfeit his or her ability to file a contest if the time period runs out. One of the benefits of providing that 120-day notice is to get the clock running so as to prevent claims from being made once they are too late to make.
The trustee will need to inventory all trust assets, such as real estate, bank and investment accounts, and transfer the title of those assets into the trustee’s name as the successor trustee. To do that, the trustee needs to first get the trust’s IRS federal tax identification number so that any income earned from the accounts in the name of the trust is reported correctly.