Trustee’s Notice: The First Thing A Successor Trustee Should Do After The Death Or Incapacity Of The Initial Trustee

After the initial trustee passes away, or becomes irrevocable, what must the trustee do? When a trust becomes irrevocable, it means that the trustor can no longer change or terminate the trust. As a result, the trustee of the irrevocable trust is responsible for managing the trust’s assets.

In California, a trustee must follow specific rules and regulations when administering an irrevocable trust. The first thing a trustee must do is send out a Trustee’s Notice.

Who Needs To Be Notified?

A revocable trust becomes irrevocable by reason of the death of one or more of the settlors, or when there is a change of trustee of an irrevocable trust, the trustee must give notice as provided in that section to each beneficiary of the trust. Also, if the notification is required because of the death of a settlor, notice must be given to the heirs of the settlor.
What Does The Notification Need To Say?
The notice must be specific and contain the following:

• The identity of the settlor(s) of the trust.
• The date of execution of the trust.
• The name, address and telephone number of each trustee.
• The address of the principal place of administration of the trust.
• Any information expressly required to be given by the terms of the trust instrument.
• Notice that the recipient is entitled to receive a copy of the terms of the trust upon reasonable request (or the trustee may attach a copy of the trust instrument).
• Except where notice is required because of a change of trustee, the notice must have the following warning in not less than 10 point, boldfaced type: “You may not bring an action to contest the trust more than 120 days from the date this notification by the trustee is served upon you or 60 days from the day on which a copy of the terms of the trust is mailed or personally delivered to you during that 120-day period, whichever is later.”
  
  

Why Does The Trustee Need To Send Notice?
To begin with, the law requires it. In addition, this is a great way to limit the time in which an heir or beneficiary can challenge a trust. This is quite critical information, and will affect the timing of distributions.
The notice shortens the statute of limitations for bringing an action to contest the trust to the later of 120 days from the date of notification or 60 days from the time the trust instrument is mailed or delivered during that 120-day period

​When Does The Notice Need to Be Sent?
The successor trustee has 60 days after the death of the initial trustee to give notice.
Are you a successor trustee? Contact my office to set up a free consultation to discuss this notice, and other aspects of being a trustee. Let’s come up with a plan! 818-248-2183. Or email me via the below.