What a successor trustee is
A revocable living trust usually has the person who created it (the grantor or settlor) as trustee during their life, and names a successor trustee to take over when they die or can no longer manage. When the grantor dies, the trust becomes irrevocable, and the successor trustee's job is to collect the assets, pay what's owed and distribute the rest to the beneficiaries, following the trust document.
It's the trust's version of an executor, without a probate court supervising you. That's why people use trusts. But it doesn't mean there are no rules. A trustee has a fiduciary duty: you have to act in the beneficiaries' interest, keep the trust's money separate from your own, and keep records. If you break those duties, you can be personally liable.
If you're named but don't want the job, you can decline. Do it in writing before you start acting, and the trust will name the next successor or a court will appoint one.
The checklist
1. Read the trust and secure the assets
- Find the original trust and every amendment. Read who gets what, when, and what powers you have.
- Get several certified death certificates.
- Secure the house: change the locks if others have keys, keep the insurance in force, and tell the insurer the owner has died. Vacant homes often need a different policy.
- Sign an acceptance of trusteeship if the trust or your state calls for one. To show banks and title companies your authority, use a certification of trust (a short summary instead of the whole document).
2. Notify the beneficiaries (60 days)
Most states follow the Uniform Trust Code, which requires the trustee to notify the beneficiaries within 60 days of the trust becoming irrevocable. The notice tells them the trust exists, who created it, how to reach you, and that they have a right to a copy of the trust and to reports.
- California: within 60 days, serve the beneficiaries and the grantor's heirs with the notice under Probate Code 16061.7. It has to include a bold warning that they have 120 days from the notice to contest the trust. Sending it promptly starts that clock.
- Florida: notify beneficiaries within 60 days, and file a Notice of Trust with the probate court in the county where the grantor lived.
3. Get an EIN and tell the IRS
After the grantor's death, the trust needs its own employer identification number. It can no longer use the grantor's Social Security number. Apply online at irs.gov, then open a trust bank account in that number. File IRS Form 56 to notify the IRS that you're the fiduciary.
4. Value everything as of the date of death
Get a written appraisal of the house as of the date of death, and statements for every account. This matters for the beneficiaries: inherited property gets a stepped-up basis equal to its value at death, so a house the grantor bought for $120,000 that was worth $480,000 at death can be sold for $480,000 with little or no capital gains tax. Without a date-of-death appraisal, proving that later is hard.
5. Handle the house and its property tax
The property tax bills keep coming, and paying them is your job, from trust funds. Common issues:
- The homestead exemption ends. The grantor's exemption doesn't carry over. If a beneficiary moves in, they have to apply for their own. In Florida that's by March 1 with the property appraiser.
- California reassessment. Transfers to beneficiaries can be reassessed under Proposition 19. A child who moves in can keep part of the parent's low assessed value: the factored base value plus $1,044,586 for transfers through February 15, 2027. The child must make it their main home and file the homeowners' exemption within a year. You also have to file a change in ownership statement with the county assessor within 150 days of the death. See Prop 13 and Prop 19 explained.
- Selling it. As trustee you can usually sell without court approval, signing as trustee, using a certification of trust and the death certificate. Some states also have you record an affidavit of death of trustee.
More detail in property taxes on an inherited house.
6. Pay debts, expenses and taxes
Pay the funeral costs, final bills, debts and taxes before distributing anything. If you distribute first and money runs short, you can be personally on the hook. In Florida, a trust that isn't paired with a probate case stays exposed to creditors for up to two years after death. Opening a probate case shortens that to about three months. If there's not enough to pay everyone, see what happens with an insolvent estate.
Tax filings:
- The grantor's final Form 1040 for the year of death
- The trust's Form 1041 for each year it has $600 or more of gross income (rent from the house, interest, a sale)
- Consider the section 645 election (Form 8855), which lets the trust be taxed as part of the estate and use a fiscal year. It's irrevocable once made.
- Form 706 only if the estate is over the federal exclusion ($15 million in 2026), or to elect portability for a surviving spouse.
7. Account to the beneficiaries
Keep a ledger of every dollar in and out. Under the Uniform Trust Code you owe beneficiaries regular reports showing the assets, liabilities, receipts, payments and your own compensation. A clear accounting before the final distribution is your best protection against later claims.
8. Distribute and close
Distribute according to the trust: deed the house to the beneficiary (as trustee, to the new owner), or sell it and split the proceeds. Many trustees ask beneficiaries to sign a receipt and release. Keep a reserve for final tax bills until the last returns are filed.
How long it takes
A simple trust with a house and a few accounts often takes six months to a year and a half. An estate tax return (due nine months after death), a contested trust or a house that's slow to sell all add time.
Can the trustee be paid?
Yes. A trustee is entitled to reasonable compensation unless the trust says otherwise. Family members often waive it. Professional trustees typically charge a percentage of assets. Whatever you take has to be disclosed to the beneficiaries.
Mistakes that make trustees personally liable
- Mixing trust money with your own, or paying trust bills from your own account without records
- Living in the house rent-free, or letting a sibling do so, when the trust doesn't allow it
- Selling the house to yourself or a relative below market value
- Distributing before paying debts and taxes
- Letting the insurance or property taxes lapse
Quick answers
Does a successor trustee have to go to court?
Usually not. That's the main reason for a trust. Court gets involved only if there's a dispute or a beneficiary asks for it.
How soon does a successor trustee have to notify beneficiaries?
Within 60 days in most states, including California and Florida.
What happens to a living trust after death?
It becomes irrevocable, the successor trustee takes over, and the assets are managed and distributed according to its terms, usually without probate. Anything that was never transferred into the trust may still need probate. See revocable living trusts explained.
Sources
Notice duties and reports are from the Uniform Trust Code section 813 as adopted by the states (Maine 18-B section 813 as an example), California Probate Code 16061.7 and 16061.8, and Florida Statutes 736.0813. California court procedures are from the Santa Clara County Superior Court's probate self-help page. Tax rules are from the IRS Instructions for Form 1041, About Form 56 and Publication 551 (basis). Prop 19 figures are from the California State Board of Equalization. This is general information, not legal or tax advice.