If you've recently learned that you're named as a successor trustee, it's important to understand both what that means and what happens next.
When the creator of a revocable living trust (also called the grantor, settlor, or trustor) passes away, the trust typically becomes irrevocable—meaning the terms can no longer be changed. At this point, the successor trustee named in the trust documents becomes the acting trustee.
A successor trustee is the individual appointed to step in and administer a trust after the original trustee—often the person who created the trust—can no longer serve due to incapacity or death. Your role is to carry out the instructions outlined in the trust and manage the assets on behalf of the beneficiaries.
What Does a Successor Trustee Actually Do?
The role of a successor trustee involves more than just distributing assets. Your job is to carry out the instructions laid out in the trust documents, which usually includes:
Taking legal control of trust assets. This may include bank and investment accounts, real estate, business interests, and personal property titled in the name of the trust.
Notifying key parties. You’ll need to inform beneficiaries, financial institutions, and government agencies of the grantor’s death and your authority to act.
Collecting and organizing information. This includes locating the full trust agreement and any amendments, gathering financial statements, reviewing property titles, and confirming insurance coverage.
Paying debts and expenses. The trust is typically responsible for settling any outstanding bills, taxes, and administrative expenses before assets are distributed.
Managing trust property. If the trust holds real estate or investments, you may need to maintain, sell, or oversee these assets until they are distributed or retained for ongoing trust management.
Distributing assets. Once obligations are met, you’re responsible for distributing remaining assets to beneficiaries in accordance with the trust’s instructions.
What to Expect During the Trust Administration Process
Trust administration can take anywhere from a few months to over a year, depending on the size and complexity of the estate, the clarity of the trust terms, and whether any disputes arise. The successor trustee must also keep detailed records of all activity and communicate regularly with beneficiaries.
In some cases, you may be responsible for managing the trust on an ongoing basis if the trust was designed to provide longer-term support for a surviving spouse, child, or other beneficiary.
Key First Steps for New Trustees
If the original trustee has passed away or is no longer able to serve, here are the first steps to take:
Locate and review the trust document. This outlines your powers and responsibilities. Work with an attorney if you need help interpreting legal language.
Order multiple copies of the death certificate. These will be required to notify financial institutions and government agencies.
Inventory trust assets. This includes identifying accounts, real estate, and personal property held in the name of the trust.
Secure trust assets. Ensure real estate is maintained, valuables are protected, and bills are paid to preserve the value of the estate.
Notify beneficiaries. You’ll need to keep them informed throughout the administration process.
Open a trust bank account. This allows you to pay expenses and eventually distribute assets from one central place.
Reach out for professional guidance. Working with a financial advisor and other qualified professionals early in the process can help you avoid costly mistakes and ensure the trust is administered according to its terms.
How Aspire Planning Associates Can Support You
Serving as a trustee is a serious legal and financial responsibility. At Aspire Planning Associates, we support successor trustees by helping them:
Understand and interpret the terms of the trust
Coordinate with estate attorneys and tax professionals
Evaluate and manage trust-held investment assets
Develop a plan for distributions that aligns with the trust’s objectives
Navigate ongoing trustee duties for long-term trusts
As a financial planning and investment management firm, we can help you ensure the trust is administered efficiently and in the best interest of the beneficiaries—and that any investments or assets are managed with care, strategy, and transparency throughout the process.
If you’ve been named as a successor trustee and would like professional support through the process, contact Aspire Planning Associates at (925) 938-2023 to schedule a consultation. As part of our consultation, we can provide you with an in-depth checklist to help you confidently navigate the steps involved in settling the trust.
This article is for informational purposes only and should not be considered personalized financial, tax, or legal advice. Individual circumstances vary, and readers are encouraged to consult with a qualified financial planner, tax professional, and estate attorney regarding their specific situation.
