What Should Be Done After Someone Passes Away in California (If They Had a Living Trust)

Most people imagine this moment comes with a checklist.

It doesn’t.

It comes with a phone call.
A hospital room.
A quiet house that suddenly feels different.

And then someone says:

“You’re the trustee.”

If you’re like most Californians, you’ve never been a trustee before. You didn’t study probate law. You didn’t expect to be responsible for legal notices, property protection, taxes, and family expectations — all while grieving.

This article is for that moment.

It’s written for anyone in California who may one day lose a parent or spouse who had a living trust, and suddenly finds themselves named as a Trustee, Successor Trustee, or in a decision-making role.

If you’ve ever thought, “Wow, I didn’t know any of this,” you’re exactly who this is for.

First: Take a Breath — Nothing Needs to Happen Today

One of the biggest misconceptions after a death is urgency.

In California, very little must be done immediately, even when there is a living trust.

What is urgent:

  • Obtaining death certificates

  • Securing property

  • Preventing irreversible mistakes

What is not urgent:

  • Distributing assets

  • Selling property

  • Making rushed legal or tax decisions

The law allows time.
And taking that time is often what protects families.

Step 1: Death Certificates (You’ll Need More Than You Think)

Most families are surprised by this.

You will likely need 10–15 certified copies of the death certificate.

They are required by:

  • Banks and credit unions

  • Investment firms

  • Life insurance companies

  • Retirement account custodians

  • Title companies

Important tip: Order extra at the beginning. Reordering later causes delays and added stress.

Step 2: Locate the Trust — and Read It (Even If It’s Confusing)

If you’ve been named as trustee or successor trustee, the trust is now your legal guide.

Here’s what many people don’t expect:

  • Trusts are long and technical

  • Instructions may be buried deep

  • Not all trusts are funded correctly

At this stage, you are not expected to understand everything — but you should identify:

  • Who the beneficiaries are

  • Who the trustee(s) are

  • Whether professionals are required

  • What assets are supposed to be in the trust

A critical realization for many Californians:

Having a trust does not guarantee everything avoids probate.

Step 3: Secure Property — Even If Everyone Gets Along

Trustees have a legal duty to protect trust assets.

That means:

  • Securing the home

  • Safeguarding valuables

  • Keeping insurance active

  • Preventing informal “borrowing”

Yes — even if the family is close.
Yes — even if it feels uncomfortable.

If something disappears, the trustee is responsible.

Step 4: California Notice Requirements (This Surprises Most People)

In California, trustees must formally notify:

  • Trust beneficiaries

  • Sometimes heirs-at-law

This notice:

  • Triggers legal timelines

  • Creates enforceable rights

  • Must be handled carefully

Poorly handled notices — or informal communication — are one of the most common sources of conflict in trust administration.

Step 5: Trust Assets vs. Non-Trust Assets (A Big Eye-Opener)

Even with a living trust, some assets may:

  • Pass by beneficiary designation

  • Require probate

  • Be outside the trust entirely

Common examples:

  • Retirement accounts (IRA, 401k)

  • Life insurance

  • Bank accounts not titled in the trust

  • Real estate never transferred into the trust

This is why trustees often say:

“I thought having a trust meant no court involvement.”

Sometimes that’s true.
Sometimes it’s only mostly true.

Step 6: California Taxes Still Apply — Even Without Probate

Another common myth:

“If there’s a trust, there are no taxes.”

In reality, trustees may need to address:

  • Final personal income tax return

  • Trust income tax returns

  • Capital gains planning

  • Property tax reassessment rules (Prop 19)

Selling property or distributing assets without understanding tax consequences can cost heirs tens or even hundreds of thousands of dollars.

Step 7: Distribution Comes Last — Not First

Many people believe the trustee’s job is simply to “hand everything out.”

In truth, distribution is the final step.

Before distributing assets, trustees must:

  • Address debts and expenses

  • Handle tax obligations

  • Follow trust instructions precisely

  • Document decisions

Distributing too early is one of the most common and costly trustee mistakes.

A Simple California Trustee Checklist

What You MUST Do

  • Follow the trust exactly

  • Act in the best interest of all beneficiaries

  • Protect trust assets

  • Keep records

  • Avoid conflicts of interest

What You SHOULD Do

  • Take your time

  • Ask questions early

  • Communicate clearly and consistently

  • Document everything

What You Should NOT Do

  • Rush

  • Guess

  • Make informal promises

  • Assume agreement equals protection

What NOT to Do as a Trustee (Common Mistakes)

“Everyone gets along”
Until money is involved. Your duty is to the trust — not family dynamics.

Distributing assets too early
Once distributed, mistakes are hard to fix.

Selling property immediately
Without understanding step-up in basis and Prop 19, this can create unnecessary tax exposure.

Using casual communication
Texts and informal emails can later be misinterpreted.

The Quiet Truth Most Trustees Aren’t Told

Being named trustee is an honor — and a burden.

You are:

  • Grieving

  • Managing legal duties

  • Navigating family expectations

  • Personally liable for mistakes

Most trustees were never trained for this role.

And yet, very few are told:

You don’t have to do this alone.

How DeCosimo Law Helps Trustees Move Forward Calmly

At DeCosimo Law, we regularly help trustees who say:

  • “I’m afraid of messing this up.”

  • “I don’t even know where to start.”

  • “Everyone is asking me questions.”

We help by:

  • Explaining responsibilities in plain English

  • Identifying risks before they become problems

  • Coordinating with CPAs and financial professionals

  • Helping families move forward with clarity and confidence

You don’t need to be a legal expert to be a good trustee.
You just need the right guidance at the right time.

Final Thought

One day, many Californians will become trustees — often unexpectedly.

If you’re reading this:

  • You’re not behind

  • You’re not failing

  • You’re preparing

And preparation is what protects families.

This article is a service of DeCosimo Law. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own, separate from this educational material.

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