TRUST ADMINISTRATION CALIFORNIA

California Trust Administration: Actions that must be taken by a Trustee after someone dies. What new Trustees and Executors to Living Trusts and Wills must do. Professional Trust Administration services in California, and California Trust Law: A Trustee has 100% personal liability when managing a Trust. Also see our FAQ about Trust Administration.

By James L. Cunningham Jr., Esq.

Perhaps you have just lost a loved one, and you are beginning to look at the steps you must take following a death in California.

If you were named as the Trustee of your loved one’s Estate, it can be more than a little stressful going through their things, finding their financials and deeds, paying their debts, paying their taxes, administering the Will and Living Trust they left behind, canceling subscriptions, closing bank accounts, and distributing assets to all their beneficiaries fairly and legally.

If you’re unfamiliar with the nuances of managing a trust, consider seeking the assistance of a trust administration lawyer to ensure everything runs smoothly. Consulting a California trust attorney can provide valuable insights into the complexities of the state’s trust laws and regulations.

How Long Does Trust Administration Take in California?

It’s often a long process, requiring a year or more—so brace yourself and try to relax. This will take patience and time. You should also immediately consider getting professional help with Trust Administration in California through a trust administration law firm like ours that specializes in trusts and estates.

CunninghamLegal provides complete Trust Administration Services in California, regardless of where you as a Trustee are located–and we often work with people located out of state. Please consider contacting us right away when you become the Trustee of an Estate in California.

Regardless of your choice of how to move forward, there are some key facts and key trust administration steps you need to keep in mind. Here are some of the actions that need to be on your trust administration checklist in California.

What Does a Trustee Have to Do? Does a New Trustee Have to Go to Probate Court?

Trust administration in California is a meticulous and complicated process that requires adherence to both the trust’s specifications and state law. That’s why you need experienced California trust attorneys to navigate the process with you.

Let’s assume that your loved one left behind a signed Living Trust, along with a Last Will and Testament, which has been structured as a “Pour-Over Will.” If so, you should be enormously grateful. We haven’t space in this article to deal with cases in which no trust has been left behind. Just know that in most states, including California, if there’s no trust, you must go to Probate Court. Indeed, if certain classes of assets are left out of a trust, or if minors require guardianship, you will still need to go to probate court—where we strongly suggest legal representation. You can learn more about Probate Court in California here.

The job of a Trustee is a weighty one, and you must either educate yourself deeply in how to administer a trust in California or hire a firm like ours to help you administer the trust. If, for example, you have now lost both your parents and you have siblings, it will be vital to do everything in your power to be fair and equitable to every beneficiary of your parent’s estate, as well as follow the terms of the will and trust—and do your best to prevent friction and misunderstanding among heirs. Indeed, you may be legally liable for errors and omissions in your administration of the trust.

Every day, our offices work with heirs and trustees who have gotten themselves in a bind and sometimes even legal trouble because they have misunderstood the steps they had to take.

If they had come to us earlier, much strife could have been avoided.

So…what does a Trustee do? We can’t cover it all in one article, but let’s get started and give you a little California trust law outline by looking at some vital Trustee responsibilities. California trust requirements dictate that it identifies a settlor, a trustee, and a clearly defined beneficiary for the trust to be considered valid to avoid a later contest. We’ll assume that you were named Executor of the Will along with being named Trustee.

What Documents Are Needed for a Trust Administration in California?

The intricacies of California trust administration can seem daunting, especially when considering the myriad of essential documents involved. Before diving into the specifics, it’s crucial to have a clear understanding of the necessary paperwork. Ensuring appropriate handling of duties, sending the notice to beneficiaries, addressing the decedent’s affairs, and liaising with the IRS are all pivotal steps to guarantee a smooth and lawful process.

The most important document is the Estate Plan—but you also need to find all the related documents:

Trust
Wills
Asset List
Death Certificate
Property Deeds
Tax Returns/Filings
Funeral Instructions

These documents must now be guarded with great care, as they represent everyone’s legal rights and responsibilities to the assets. Indeed, anyone who is a beneficiary may rightfully ask for a copy. If you don’t know where the plan is located, your loved one’s legal firm will likely have an archival copy.

If the Estate Plan is found before the deceased has been laid to rest, you must also find any written funeral, cremation, burial, or memorial instructions. Usually, these are included in the Trust, and you must locate and guard those carefully. You may have a legal duty to try to execute those instructions to the best of your ability. There could already be a plan in place called a “Pre-Need Plan,” in which case decisions would have already been made. If there isn’t a plan in place, decisions will be up to the people named in the Durable Power of Attorney for Healthcare, which is also known as an Advanced Healthcare Directive.

Just as importantly, you must obtain certified copies of the Death Certificate, arranged by a funeral home, and signed by the attending physician. Order at least six official copies, as you will need these for many purposes. It’s worth the small expense. For some purposes, a photocopy of the original will do, but in many cases, you will need an official, certified copy.

Does a Trustee Have to List All Assets, In or Out of the Trust “Box”?

Yes. As Trustee, it’s now your job to make a detailed list of everything that is held within and was left out of your loved one’s California Living Trust.

You can think of a Living Trust like a box, and the Trust documents like distribution instructions written on the side of that box. As the Trustee, you are now the treasurer, but not the owner of the box. It’s your job to guard the box and distribute the contents to the “Beneficiaries” named in the Trust. One of those beneficiaries may be you, but being the Trustee gives you no more right to the assets in the box than other beneficiaries. The distribution of trust assets to beneficiaries in California should always be executed in accordance with the settlor’s conditions and state regulations.

Let’s take a quick look at the “box” of a Living Trust.

Assets, including real estate, bank accounts, and brokerage accounts were put into the box we call a Living Trust to make them easy to pass on to the trust’s beneficiaries—without any court involvement. The Trust document instructs the Successor Trustee what to do with the items in the box after someone dies. Assets were “put” into the box by deeding real estate to the trust, and by changing the account holder on a financial account to the name of the trust.

Since personal items like furniture do not have deeds or documents of title, that important separate document, the “pour-over will” transfers those items to the trust. A properly structured Last Will & Testament tied to a trust will do just that.

Your list must include all these deeds, bank accounts, retirement accounts, credit card accounts, loans, life insurance policies, investments, contracts, business assets, utility bills, mortgages, personal loans, tax returns, medical bills, as well as the funeral bill. Indeed, if the loved one’s records aren’t perfect, you may not find out about some debts and assets until months later, when all the statements have come in the mail, or creditors realize your loved one has died.

As you begin to make your list, you may realize that some things are not in the trust which should be, and that those items will take special attention, and may even be a problem that requires court involvement.

If we’re talking about your parents, and your parents were wise, they would not have put their IRA accounts into the trust. Inherited IRAs are a subject too complex for this article, but know they are fraught with danger, and like life insurance, generally should not be placed in a Living Trust.

On the other hand, your parents might easily have accidentally left a real property out of their trust. Errors like this definitely require the help of an attorney, and you need to contact one immediately.

We’ll talk more about things “not in the box” near the end of this article.

As you make your list, remember that you need to keep it available to the other beneficiaries of the trust, such as your siblings. Make sure that everything you do is transparent to them. If you have questions about what you are required to disclose, you should discuss this with a qualified attorney.

How Should a Trustee Review the Provisions of a Will and Living Trust?

As Trustee, you must read every document in the Estate Plan very, very carefully. Some documents can be complex and confusing, but the attorneys at our firm are experienced and ready to help you interpret the Estate Plan documents. Recognize that when all the original grantors passed away, the trust immediately became irrevocable. Even though you are now the Trustee, you cannot change it, and you are legally bound to its provisions. Keep some key questions in mind as you read:

—Are there special instructions regarding the loved one’s funeral, cremation, or burial?
—Who gets the loved one’s personal effects?
—Who gets any specific bequests?
—Who gets the loved one’s residuary trust?
—What was the date and location where the trust agreement was signed?
—Who signed the trust as witnesses and Notary Public?

The savvy move is to write down a summary of these and other important points that you can refer to easily.

You may realize that some things are not in the trust which should be, and that those items will take special attention, and may even require court involvement.

Within the Estate Plan, you will probably find “Powers of Attorney” documents. These become irrelevant as soon as someone dies—but never throw any such documents away.

Should a Successor Trustee Consider Meeting with a Trust Attorney to Obtain Trust Administration Services?

Yes, it’s possible to do this yourself, but you are entitled to work with a qualified Trust Attorney to help you with California Trust Administration, and we strongly suggest doing so on anything but the simplest estates. Not only will you spare yourself enormous hassles and potential errors, but working with an attorney will greatly reduce your personal liability as the Successor Trustee.

After a death, an Estate Firm that does Trust Administration can help immediately by:

Determining the accurate value of the estate.
Resolving any outstanding debts and expenses.
Strategizing on reducing or eliminating estate and other taxes.
If in California, working to prevent a reassessment of real estate under Proposition 13.
Fully administering a trust in conjunction with the family’s existing advisors and fiduciaries.
Strategizing on the complex issues involving retirement accounts.
Distributing assets to the proper beneficiaries as quickly and efficiently as possible.

Do you really need to pay an attorney? Well, as you might already see, there are a lot of important things you really don’t want to get wrong. Getting them wrong could lead to lawsuits, enmity among siblings, and worse.

Plenty of estates are completely lost to legal fees among siblings as they fight things out in court.

Without professional help, it’s pretty easy to improperly account for assets, or get things like date-of-death values wrong. It’s also pretty easy for some terrible tax disasters to occur, especially with things like retirement accounts.

In any but the simplest situations, acting as Trustee can also take up a lot of your time.

Does a Successor Trustee Need to Value the Assets as of the Date of Death?

Yes. A vital responsibility of a Trustee is to establish date-of-death values for all your loved one’s assets. You can see how time will be of the essence in this job.

All financial institutions where the deceased’s assets are located must be quickly contacted to obtain these date-of-death values. For assets including real estate, personal effects including jewelry, artwork, collectibles, and closely held businesses, that’s a different job—possibly requiring a professional appraiser.

We’re talking about the value of everything, here. The value of all of the decedent’s assets will need to be established, including those passing outside of the trust, in order to determine if any estate taxes or inheritance taxes will be owed, as well as increases in value after the date of death, when assets are liquidated.

Assets likely to move outside of the trust may include life insurance, IRAs, 401(k)s and annuities with named beneficiaries.

Does a Successor Trustee Have to Pay the Bills of the Person Who Died?

Yes, the bills of someone who has passed away must be paid. Ultimately, the estate owes the money, and the bills are paid out of the estate. All those debts must be settled before there can be a distribution of anything to yourself or the other beneficiaries. And yes, that will delay a distribution—another reason to seek professional help.

This is also the time that you, as the Successor Trustee, will need to evaluate whether trust assets, such as real estate or a business, should be sold. This is your sole decision as Trustee, and often it’s the best way of creating an equitable distribution for multiple heirs—though again, you should seek professional advice.

The Trustee is also responsible for paying the ongoing expenses of administering the trust, such as legal fees or accounting fees. Then, there are ongoing expenses like utilities, insurance premiums, mortgage payments, and homeowner or condominium association fees.

In many cases, you may draw a small stipend from the estate for the work you are doing in all this, and of course, the estate should pay administrative expenses. But proceed with great caution in this area, and again seek professional advice, as you do not want to trigger questions from other beneficiaries or create liability for yourself.

Is a Successor Trustee Responsible for Paying the Taxes of the Deceased?

As Trustee, you are now responsible for filing your loved one’s final tax return. Then, if the Trust earns any income at all after their death, you must file a separate tax return on behalf of the Trust, both state and federal.

Absolutely do not try to file these returns without the professional help of a qualified CPA, as it must be done correctly and within legal parameters you are not equipped to understand.

How Are Trust Assets Distributed to Beneficiaries After a Death?

Distributing the assets from a trust can be a big job. As Successor Trustee, you need to have a clear accounting available for all the beneficiaries. You may need to complete transfer deeds and other change-of-title documentation. You will need to work closely with each financial institution involved.

Only after all of the above has been settled can a Successor Trustee actually distribute trust income or property to trust beneficiaries, including possibly yourself, strictly according to terms of the Will , Trust, and the Law.

Do not distribute anything, even mementoes and cash you find in drawers, without all the above taking place.

Once again, to avoid problems, including personal liability for screw-ups, we strongly advise you to work with an estate or Living Trust Attorney along with a good accountant, and if the assets are significant, a financial advisor.

What If An Asset Is Left Out of a Trust?

As we mentioned earlier, you may have found a number of assets that had never been put into the “box” of the trust. Let’s go back and talk about that now.

Certain assets, like bank accounts, retirement accounts, and investment accounts, may have stayed in the name of the deceased, rather than going into the Trust. These may have been structured with PODs, or payable-on-death beneficiaries. If so, you must work directly with the financial institution on how to fulfill those PODs. But even though you are Trustee of the Living Trust and Executor of the Will, you have no power to manage that process or prevent other beneficiaries from exercising their rights over such accounts. It’s between them and the financial institution. You should, however, try to meet with all the beneficiaries and discuss the options—preferably with the help of a California Estate Attorney.

You can think of a Living Trust like a box, and the Trust documents like distribution instructions written on the side of that box. As the Trustee, you are now the treasurer, but not the owner of the box.

If you and other beneficiaries are inheriting IRA or other retirement accounts, please realize immediately that these are fraught with issues and require careful education and management.

For many asset types not included in the Trust, including real estate, you will need to talk to an attorney immediately, and to get control of such assets, you may very well need to open a court-administered probate.

The probate experience does vary greatly state by state. As California Estate Planning Attorneys who handle probate, we can give you a little good news: California has implemented an easier and expedited court procedure that can transfer certain assets into a trust after a death so that the estate can be administered without further delay.

What is a Heggstad Petition? How to File a Heggstad Petition in California

Let’s say that your mother inherited a home from a sibling that was never put into her Living Trust. Or the home was pulled out of the trust at some point for refinancing.

California Courts allow what is known as a Heggstad Petition, named after a case, Estate of Heggstad, (1993) 16 Cal. App. 4th 943, which first discussed the concept.

Using the Heggstad case as a precedent, courts allow Trustees to file an administrative petition asking that assets found outside of the trust be properly transferred to the trust. The petition must show that the specific asset is mentioned in the trust, and that the trust creator (called a “Trustor” or “Grantor”) intended that the property be in the trust. Courts will look to language in the trust specifically mentioning the asset.

In some trusts, the real property is not specifically mentioned. A recent case called Ukkestad v. RBS Asset Finance, Inc. (2015) 235 Cal. App. 156 loosened the requirement that the asset be specifically mentioned if the trust states that “all personal and real property…wherever situated” be held in the trust.

The Ukkestad case makes the process easier, but it’s still preferable to have a specific reference to the assets subject to the petition. As Ukkestad is a relatively recent case from 2015, it’ll take some time to see how other courts will interpret and implement this rule of law.

What You Don’t Know Can Hurt You

Please be aware that we have not given you a comprehensive checklist for your new and vital role as Trustee—we’ve just sketched out the highlights.

We’ve not touched on some obvious additional issues: online accounts, subscriptions, life insurance policies, and so forth will all need to be dealt with. The exact timing of closing or transferring bank accounts, for example, will be vital.

Indeed, no full-length book could offer a full checklist of all the possible issues—and errors—that can come up for Trustees—and unfortunately, many new trustees get far into the process before they realize they’ve gone off track and need an attorney to help out.

All too often that happens only after siblings have become estranged, unnecessary taxes have been paid, and laws have been broken.

Whether or not you call our firm, we urge you not to try to handle this by yourself. No “California Trust Administration Guide” or “Dummies” book can safely get you through this alone.

Can I Get Out of Being the Trustee of My Parent’s Trust?

If you’ve been reading this article and you are now thinking, “do I really have to do this,” you should also know that you have no legal obligation to accept the role of Trustee, no matter the wishes of your loved one.

Most trusts name successor Trustees if the first decides not to serve. Or you may seek the help of a lawyer in having a new Trustee named, including a professional Trustee.

What Do We Do?

Hiring a California trust lawyer is a prudent step for anyone serious about setting up or managing a trust in the state.

CunninghamLegal has more than 26 years of experience handling the intricacies of California Trust Administration, and we would love to help you get this right—so that the legacy of your loved one brings support and comfort to the living, instead of hassles and heartache.

We have offices throughout California, and we offer in-person, phone, and Zoom meetings. Just call (866) 988-3956 or book an appointment online.

Please also consider joining one of our free online Estate Planning Webinars.

We look forward to working with you!

Best, Jim

James L. Cunningham, Jr., Esq.
Founder, CunninghamLegal

James L. Cunningham Jr., is CEO, Partner, and a Certified Specialist in Estate, Trust, and Probate Law at CunninghamLegal. A well-known speaker and YouTube educator, Jim is the author of the bestselling book, Savvy Estate Planning: What You Need to Know Before You Talk to the Right Lawyer.

Contact us today for a consultation!

A Trustee is personally liable for mistakes in administering a Trust. Contact us to handle all the details professionally on your behalf.

Learn more about Trustee risks here

What Services Are Included in Trust Administration at CunninghamLegal?

At CunninghamLegal, we’re here to make your role as Trustee of an estate as easy and stress-free as possible. When you engage us for Trust Administration, we handle the details, stay on top of the deadlines, and ensure that everything happens in a fair and legal way. Here’s a quick summary of our service:

Analyze Trust terms and provide detailed guidance for the Trustee
Assign an attorney and paralegal to be points of contact throughout the administration process
Legally install Trustee, obtain Tax ID number (TIN), and send required California notices
Prepare inventory of assets and communicate with institutions to establish adjusted cost basis
Prepare transfer of ownership documentation for real property
Assist with asset titling issues such as Small Estate Affidavits and Heggstad petitions
Assist Trustee in preparing an asset management plan
Prepare Fiduciary accountings
Analyze property tax and capital gains tax issues
Collaborate with CPAs and financial advisors to administer the Trust efficiently
Handle distribution of inheritance to beneficiaries
Offer family/beneficiary meetings to discuss the status of the administration and/or particular issues
Prepare Estate Tax Returns for the surviving spouse to claim additional estate tax exemption (“portability”)

Trustees in California are entitled and encouraged to hire an attorney to ensure that the administration process complies with the California Probate Code, and by law, all administrative fees are charged to the Trust and not to the Trustee personally. At CunninghamLegal, we provide Trustees with comprehensive and customary services at reasonable rates. We send monthly bills to the estate detailing our work, along with breakdowns on additional fees such as recording fees, postage, etc. Note that in almost all Trust Administration matters, the costs for our services are less than statutory minimum fees for the same estate going through the probate process.

Please request an appointment, or call us at +1 866.988.3956. We have offices throughout California.

FAQ: Here are some common questions our attorneys receive about Administering a Trust in California. Please contact us for more information.

What is Trust Administration?

Trust Administration refers to the identification of Trust property, taking control of Trust property, management of Trust property, and distribution of Trust assets by a Successor Trustee. The Successor Trustee administers the Trust on behalf of the Trust’s Beneficiaries after the Creator (also known as the Settlor, Grantor, Trustor, or Trustmaker) of the Trust stops being Trustee because of death, incapacity, or resignation. The Successor Trustee is named in the Trust and must follow the provisions of the Trust. Best practices include informing the Trustee before the death, incapacity, or resignation, so they are aware of the responsibilities, and agree to accept the role beforehand. Many times, Trustees work with a specialized law firm to administer a Trust, because such firms have the experience and resources necessary to follow the law, help protect Trustees from personal liability, and properly execute the wishes of clients and Trust documents.

What are the first steps in the Trust Administration process after someone dies?

1) Get the death certificate and speak to an attorney as soon as possible: time is of the essence.

2) Find and thoroughly read the Trust and other estate documents.

3) Research the decedent’s assets and gather documentation for the value of assets—such as investments and properties—on the date of death.

4) Obtain addresses for heirs and beneficiaries. 5) Consider professional Trust Administration through a firm like CunninghamLegal.

What’s the difference between a Will and a Trust?

In Estate Planning, there’s a huge difference between a Will and a Trust. Think of a Will as a letter you write to a probate judge indicating your preferences about what will happen to your assets and your minor dependents after you die. It’s not the Will, but the judge who ultimately decides what happens. In the Will you do name an Executor, but that person must almost always initiate a lengthy probate proceeding in a probate court. In that court they will encounter lengthy delays and significant fees in a public process. Importantly, unlike in a Trust, there are no provisions in a Will to deal with incapacity, allowing for someone to assist with finances upon the Will maker’s inability to do so.

A Trust is like a bucket into which you place your assets. During your lifetime you, or you and your spouse, hold the handle of the bucket and control it as Trustee, and when you die or become incapacitated the bucket is passed to a new Trustee who takes over control. That person can then generally act to distribute the assets in the Trust bucket to the Beneficiaries you designate in your Trust—without going to probate court or making matters public. Importantly, a Trust also provides direction to a successor Trustee if the original Trust maker (and Beneficiary) is alive but unable to manage the Trust themselves.

If a person died with a Will but no Trust, do I still need to consult with an Attorney?

Yes. If a loved one has died with a Will but without a valid, signed Trust, it is even more important to consult with an attorney than if the person left a full Estate Plan with a Trust. In California, the lack of a Trust requires special court action and a probate judge to approve each action made by the Executor of the Will. The person named as the Executor must locate the original Will and file it with the local probate court, and usually must initiate a probate proceeding. If you are in California and you inherit without benefit of a Trust, you should urgently read through our page about Probate for a Will in California in which we discuss the process to follow with or without an attorney.

Do I need an attorney to consult on the administration of a Trust?

You are strongly advised to have at least an initial consultation with a qualified attorney when you become a Trustee. You may also wish to hire a specialized firm to assist you with Trust Administration. Here’s the problem: you may feel you know how to follow the terms of the Trust, but you are unlikely to know how to navigate through the process. As a Trustee you must follow state laws and procedures which are rarely spelled out in a Trust document, and as a Trustee you have a fiduciary obligation to the beneficiaries of the trust. In short, you have legal duties beyond what the Trust itself specifies – and you are always personally liable if you do something wrong. You may wish to watch our webinar about common risks for Trustees.

If I am the successor Trustee of an estate after someone passes, should I take compensation from the estate for my work?

In general, yes. A Trusteeship can be nearly a full-time job: California law allows Trustees reasonable compensation for all of the work that is involved in trust management, and most Trusts themselves specifically allow for compensation. You should, however, think twice before taking compensation if you are the only one inheriting under the Trust—that’s because compensation is subject to income taxes, and inheritances generally are not.

How much is reasonable compensation for a Trustee?

This can be a tricky question that depends on the total value of the Trust, the nature of the Trustee, your particular U.S. state, even the county you live in, and what’s written into the Trust itself. If you are using a “Corporate Trustee” for a larger estate, they will usually receive between 0.3% to 2% of the Trust assets to handle the Trust Administration, a fee generally paid on a flat rate basis. A private Trustee, such as a family member, a Trustee who is also a Beneficiary, or a family friend will usually be paid on an hourly basis, perhaps $25 to $45 an hour in California. “Professional Trustees” who operate as solo actors may look for over $100 an hour, or may request a percentage of Trust assets. In some cases, the Trust may specify a compensation amount that must be adhered to. Bottom line, consult a qualified attorney before taking compensation from a Trust.

Will the Estate pay for an attorney’s trust administration fees?

In general, yes. Most Trusts allow for the Trustee to enlist the services of a Trust Administration attorney, with all the legal fees paid by the Trust. A Trustee should consider hiring a specialized attorney who is specifically experienced in administering Trusts so they can receive proper guidance and complete required tasks for the administration process, collection of assets, and eventual transfers to the beneficiaries. That attorney should be supported by qualified administrative staff.

Are there laws and statutory rules that Trustees must follow?

Yes. Trustees must abide by many rules under California law, in addition to the terms of the Trust itself. Ignorance of the law is not an excuse. Failure to properly follow California law can result in a breach of trust and personal financial liability—including for failure to take action to protect the assets of the estate. This is why we recommend at least an initial consultation with a qualified Estate and Trust Attorney if you become a Trustee. To learn more about the legal risks to Trustees, see our webinar.

Does a Power of Attorney stay in effect after someone dies? Does the person with POA have any power in administering a Will or Trust after a death?

No. The POA is only valid while the “principal” (the person who signs the power of attorney) is alive. After a death, the power over the assets of the deceased is extinguished. These powers pass to the “personal representative” named by a probate court, usually the executor of the Will, if the deceased left a Will.

How do I get individual stock certificates transferred to my name when I inherit stocks?

If you inherit individual stocks as “stock certificates,” not held by a Trust and not held through a brokerage institution, it can be difficult to get them transferred into your name. Some documents require a “Medallion Signature Guarantee,” which can only be obtained through a brokerage house, and without professional help, it can take months. At CunninghamLegal, we have systemized the transfer process so these types of assets can be handled efficiently by our team. Please contact us.

What is a Mandatory Settlement Conference? What happens at a Mandatory Settlement Conference for an Estate in California?

A Mandatory Settlement Conference (or MSC) is normal in trust and estate litigation and may be required by a Court or requested by relevant parties. Is a settlement conference a good thing? In general, yes, because an MSC provides the parties with an opportunity to resolve their differences before going to trial.

The precise definition of an MSC varies by state. According to California Rules of Court, a Mandatory Settlement Conference is required in all trust and estate litigation cases headed to trial anywhere in the state. Whether you’re in Sacramento, Los Angeles, or San Francisco, Mandatory Settlement Conferences are governed by California Rule of Court 3.1380, which includes these specifications:

The court can order an MSC, or any party can request any number of MSCs
The parties to the dispute, their attorneys, and anyone with full authority to settle the case must attend in person unless formally excused by the Court
No one who conducts an MSC can also serve as mediator in the same dispute

No less than five days prior to any Mandatory Settlement Conference in California, the parties must submit a Settlement Conference Statement, which must include:

A Demand: a settlement demand made in good faith
A List of Damages: an enumerated list of financial and non-financial damages
An Offer: an offer made in good faith
Facts + Law: an in-depth statement on all facts and law deemed relevant to the case by the submitting party

In any California Mandatory Settlement Conference in an estate case or other civil case, the relevant parties must attend an in-person hearing in a courthouse presided over by a judge, who may or may not have been previously associated with the case. The process is less involved than mediation, but some civil cases can be settled in a Mandatory Settlement Conference. The judge will discuss any agreements and disagreements between the parties, as well as what each party needs to settle the case.

There are no court costs for a Mandatory Settlement Conference, but attorney fees may apply.

What is a trust settlement agreement in California?

A trust settlement agreement is a written contract between the Beneficiaries of a Trust, whether individuals or organizations, resolving any disagreements over the terms of the Trust. This document, also known as an estate settlement agreement or a non-judicial settlement agreement, is only legally binding if all those affected by the provisions of a Trust are also parties to the trust settlement agreement.

A trust settlement agreement in California may arise from mediation or a trust settlement conference. Mediation or a trust settlement conference is a good thing if it results in a trust settlement agreement that helps the parties resolve their differences and allows them maximum flexibility in their relationships to the Trust.