When a trust creator, otherwise called Grantor, Trustor, or Settlor, becomes incapacitated or passes away, many families are unsure what happens next. One of the most common questions we hear is how a successor trustee actually steps in and begins managing the trust.
In this guide, a San Diego estate planning trusts attorney explains how a successor trustee assumes control of a trust in California, what documents are required, and the key successor trustee responsibilities under California law.
What Is a Successor Trustee?
A successor trustee is the individual or institution named in a San Diego living trust to take over management of the trust when the original trustee can no longer serve.
A successor trustee may step in when:
- The trust creator becomes incapacitated
- The trust creator passes away
- The acting trustee resigns or is removed
The successor trustee has a legal duty to follow the terms of the trust and act in the best interests of the beneficiaries.
When Does a Successor Trustee Take Control?
The timing depends on the trust terms and circumstances.
After Incapacity
If the trust creator becomes incapacitated, the successor trustee may assume control once:
- A physician’s written determination or a court order of incapacity is obtained (depending on the specific situation)
- Any notice requirements in the trust are satisfied
After Death
After death, the successor trustee usually assumes control immediately, though formal administration steps must still be completed.
A San Diego estate planning trusts attorney can review the trust to confirm when authority officially begins.
Steps a Successor Trustee Takes to Assume Control
While every trust is different, most successor trustees follow these steps:
1. Review the Trust Document
The successor trustee should carefully review the trust to understand:
- Their powers and limitations
- Distribution instructions
- Notice requirements
- Trustee compensation terms
2. Obtain Required Documents
Common documents include:
- Certified copies of the death certificate (if applicable)
- Certification of Trust or trust certificate
- EIN for the trust (after death)
3. Notify Beneficiaries
Under successor trustee responsibilities in California, trustees must provide required notices to beneficiaries and heirs within specific timeframes.
4. Take Control of Trust Assets
This may include:
- Retitling bank and investment accounts
- Securing real property
- Managing ongoing expenses
5. Administer and Distribute the Trust
The trustee pays debts and expenses, files required tax returns and distributes assets according to the trust terms.
Successor Trustee Responsibilities Under California Law
Serving as a successor trustee carries significant legal duties, including:
- Fiduciary duty to act in beneficiaries’ best interests
- Duty to keep accurate records
- Duty to provide accountings when required
- Duty to follow California trust law and the trust document
Failure to meet these responsibilities can result in personal liability.
Do Successor Trustees Need a Lawyer?
Many successor trustees choose to work with a San Diego estate planning trusts attorney, especially when:
- The trust owns real estate
- Multiple beneficiaries are involved
- There are tax or creditor issues
- Disputes arise
Legal guidance helps ensure compliance and reduces risk of personal exposure to the Successor Trustee.
What Is the Average Cost for Living Trust Lawyers in San Diego?
Successor trustees often ask about legal costs. The average cost for living trust lawyers in San Diego varies based on:
- Trust complexity
- Asset types
- Length of administration
- Whether disputes exist
Some attorneys charge hourly rates, while others offer flat fees for trust administration services. We charge flat fees for most trust administration services and can provide a clear estimate after reviewing the trust and conducting an initial meeting with the Successor Trustee.
Work With a San Diego Estate Planning Trusts Attorney
Acting as a successor trustee can feel overwhelming, especially during a stressful time. Understanding your authority and responsibilities is critical to protecting both yourself and the beneficiaries.
At our Carmel Valley estate planning firm, we guide successor trustees through every step of trust administration, from assuming control to final distribution.
Schedule a consultation with a San Diego estate planning trusts attorney to discuss successor trustee duties and next steps.
Frequently Asked Questions
How does a successor trustee prove authority?
Typically through a trust certificate or the full trust agreement and supporting documents, such as the death certificate, a letter of incapacity, their ID, etc.
Does a successor trustee get paid?
Yes, a successor trustee is legally entitled to a reasonable compensation.
Can a successor trustee be removed?
Yes, as permitted under the terms of the trust.