Our California Living Trusts Attorneys should be consulted regarding each of these steps to avoid problems and to limit liability of the Trustee and Beneficiaries.
I Want to Update/Amend My California Living Trust:
- I want to change my Successor Trustee(s).
- I want to change my Beneficiaries / add a Charity.
- I have a new Child / Grandchild / I'm widowed / I have remarried/divorced.
- I want to resign as Trustee and have my Successor Trustee(s) take over now.
- I need the new "No Contest" Provision added to my California Living Trust.
- I want the "Separate Property Living Trust" Provision added to my Trust.
- The tax laws have changed & I want to add or delete the AB or Q-Tip requirement(s).
- I'm concerned about Long Term Care / having to spend my assets to qualify for Medi-Cal benefits.
- My IRA or 403B tax deferred account is large. I need to add the "IRA Agreement" Provisions to my Trust. I want the "Stretch IRA" provision.
- The value of my estate has changed * I need to add the new "Article V Tax" Provisions.
- I would like the "Attorneys Authorization to Disclose" Provision, if someone tries to violate my/others rights under my Living Trust.
- I want the "Community Property" provision added to my Trust.
Trustor is Incapacitated and Unable to Handle Their Affairs:
- The Successor Trustee needs to obtain a letter from two of the Trustor's Doctors, stating the Trustor is incapacitated.
- Transfer all accounts into Successor Trustee's name as Trustee.
- Obtain a Tax ID# for the Trust.
- Prepare an inventory of all Trust assets
- Keep detailed records of all income and expenses.
- File all necessary Tax Returns.
On the Death of a Trustor (the person who created the California Living Trust), the Trustee is legally obligated to:
- Prepare an "Inventory of Assets" (valued as of the date of death of the Trustor).
- Obtain death certificates (minimum of 6-15).
- Apply for a Federal Tax Identification Number.
- Obtain the Quitclaim Deed which put the property into their Living Trust.
- Give "Statutory Notice of Trust Administration".
- Publish "Notice to Creditors".
- File Proposition 58 Claim Form - to keep Proposition 13.
- Do A-B (or Q-Tip) division to save taxes.
- File Federal Estate Tax Returns
- File Fiduciary Income Tax Returns.
- Check Trustee's authority to sell property (or their authority to run a business).
- Have an Affidavit Death of Trustee recorded for each property.
- File the original Last Will and Testament for safekeeping.
- Have the property appraised by a certified appraiser (not a realtor).
- Maintain proper insurance on Trust assets.
- If real property is sold, use procedure to limit liability.
- Upon distribution, obtain legal beneficiaries' receipts.
