You've Been Named a Trustee.
Here's What You Must Do — and When.
California trustees have mandatory deadlines starting the day the settlor dies. Miss the 60-day notice requirement under § 16061.7 and the window for anyone to contest the trust stays open indefinitely. Miss the DHCS notification and you've exposed the estate to recovery claims. This checklist tells you exactly what to do and when.
Personal liability warning: California trustees are personally responsible for losses caused by missed deadlines, premature distributions, and procedural errors — even when acting with good intentions. Probate Code § 16420 allows courts to surcharge trustees for preventable losses.
Immediately
Secure the original trust document and all amendments
You cannot act as trustee without confirming your appointment. Banks and title companies will require a certified copy.
Order at least 10–15 certified copies of the death certificate
Every financial institution, title company, DMV, and government agency requires an original certified copy. Running out causes delays of weeks.
Do NOT distribute any assets yet
Premature distributions before the creditor period closes expose you to personal surcharge liability. Wait until you have a full picture.
⚖️ California Probate Code § 16420Identify and secure all physical assets
Real property, vehicles, valuables, collections. Change locks on vacant property. Notify homeowner's insurance of the death.
Within 60 Days — CRITICAL DEADLINE
Send § 16061.7 Notice to ALL heirs, beneficiaries, and intestate heirs
This is mandatory under California law. The notice starts the 120-day window during which beneficiaries can contest the trust. If you don't send it, that window never closes — anyone can sue at any time.
⚖️ California Probate Code § 16061.7The notice must include a copy of the trust (or the relevant portions)
Failure to include required information can invalidate the notice and restart the clock.
⚖️ California Probate Code § 16061.7(a)Send by certified mail — keep all tracking receipts
You must be able to prove delivery. Keep copies of every notice sent.
Within 90 Days
Notify DHCS (California Medi-Cal) if the decedent ever received Medi-Cal benefits
Required by California Welfare & Institutions Code § 14009.5. Failure to notify can delay estate closure and expose you to personal liability for the oversight.
⚖️ California Welfare & Institutions Code § 14009.5Obtain a federal Tax ID (EIN) for the trust
Required to open estate bank accounts, receive estate income, and file trust tax returns. Apply free at IRS.gov — takes minutes online.
⚖️ IRC § 671 et seq.Open a dedicated trust bank account under the EIN
Never commingle trust assets with personal funds. Use the estate account for all estate income and expenses.
⚖️ California Probate Code § 16009Notify all known creditors in writing
Start the creditor claim period running. Unnotified creditors may have extended time to file claims.
⚖️ California Probate Code § 19003Within 4 Months
Complete a full inventory of all trust assets
You need to know exactly what is in the trust, what is outside it (potential Heggstad issues), and the value of everything. This becomes the basis of your accounting.
⚖️ California Probate Code § 16060Identify any assets NOT in the trust
Assets outside the trust may require a Heggstad Petition or small estate affidavit. Ignoring them is a breach of fiduciary duty.
⚖️ California Probate Code § 850Continue paying ongoing expenses from the trust account
Mortgage, property taxes, insurance, utilities on trust property. Stopping these payments can result in surcharge liability.
Consult with a CPA about the decedent's final income tax return
The final Form 1040 covers January 1 through date of death. Due April 15 of the following year. The trust may also need to file Form 541 (California Fiduciary Income Tax Return).
Before Any Distributions
Confirm all creditor claims have been resolved
Distributing before creditors are paid can make you personally liable for unpaid debts up to the amount distributed.
⚖️ California Probate Code § 19402Prepare a formal trustee accounting
Beneficiaries are entitled to an annual accounting under Probate Code § 16062. The accounting covers all receipts, disbursements, gains, losses, and proposed distribution.
⚖️ California Probate Code § 16062Get beneficiary approval or court approval before final distribution
A signed receipt and release from each beneficiary protects you from future claims. Without it, you can be sued for distributions they later claim were wrong.
⚖️ California Probate Code § 16004.5Consult a Certified Specialist before transferring real property
Proposition 19, deed requirements, title insurance, and Medi-Cal estate recovery all attach to real property transfers. One wrong step can trigger a massive property tax reassessment for the beneficiaries.
⚖️ California Revenue & Taxation Code § 63.2The 120-Day Contest Window — Why the § 16061.7 Notice Is Non-Negotiable
Under California Probate Code § 16061.7, the trustee must send written notice to all heirs, beneficiaries, and intestate heirs within 60 days of the settlor's death (or within 60 days of becoming aware of the death).
Once proper notice is sent, any person wishing to contest the trust has 120 days from the date notice was served to file a challenge. After that window closes, the trust is essentially uncontestable.
If you never send the notice:
The 120-day window never starts. Any heir or interested person can challenge the trust at any time — even years after distribution. This is one of the most dangerous administrative oversights a trustee can make, and it is entirely preventable.
Dustin MacFarlane — Certified Specialist
"The § 16061.7 notice is the single most important thing a new trustee does. It's not optional, it's not bureaucratic paperwork — it's the mechanism that closes the door on future challenges. I've seen trustees wait six months to 'get organized' before sending it. By then they've given every disgruntled family member an open-ended lawsuit window."
Not Sure If You're Doing This Right?
Take the Trustee Risk Audit to identify your specific liability exposure — or call Dustin directly for a straight answer.
Legal References & Primary Sources
The following California statutes and federal provisions govern the information on this page. Citations are provided to primary sources for verification. Laws change — consult a Certified Specialist for advice specific to your situation.
- §California Probate Code § 16060 — Trustee's duty to keep beneficiaries reasonably informed
- §California Probate Code § 16061.7 — Required notice to beneficiaries upon settlor's death (120-day contest window)
- §California Probate Code § 16062 — Trustee's duty to account annually to beneficiaries
- §California Probate Code § 15300 et seq. — Spendthrift trust provisions — protection from creditors
- §California Probate Code § 17200 — Trustee petition to court for instructions
- §California Probate Code § 21103 — Interpretation of instruments
Source: California Legislature (leginfo.legislature.ca.gov) · State Bar of California · California DHCS