Why California Trust Administration Is Easier Than Probate—And How Attorneys Help Keep It That Way

When someone passes away, their affairs don’t settle themselves. Debts must be paid, taxes filed, assets distributed. If that person had a living trust, the person they named as trustee takes over. That trustee often hires a trust attorney to help handle the process smoothly, legally, and efficiently.

But how exactly does a trust attorney help—and why is trust administration often far simpler than going through probate?

Trust Administration vs. Probate: What’s the Difference?

If you’ve ever dealt with probate, you know it’s a slow, public, and often expensive court process. It involves:

• Court-supervised asset transfers

• Mandatory waiting periods

• Public notice and record

• Statutory attorney and executor fees

In California, attorney fees in probate are dictated by statute and calculated as a percentage of the estate’s gross value—not the net. This means that even debt-laden estates can rack up high legal costs.

By contrast, trust administration is done outside of court. If the trust is properly funded, it avoids probate entirely. That means:

• No court filings

• No public records

• No court-set deadlines

• And no mandatory attorney fee schedule

What Does a Trust Attorney Do?

A trust attorney supports the trustee with legal guidance and document preparation. This includes:

• Notifying beneficiaries

• Marshaling and inventorying assets

• Preparing and filing tax documents

• Advising on distributions and fiduciary duties

• Communicating with financial institutions

Most importantly, the attorney helps the trustee stay out of legal trouble by ensuring compliance with California Probate Code, federal tax laws, and the trust’s own terms.

Steps of Trust Administration in California

Administering a trust is not a single task—it’s a series of coordinated steps. Here’s a simplified version of what’s typically involved:

1. Gather and Review Documents

   • Locate the trust, will (if any), and death certificates

   • Review terms of the trust and determine successor trustee powers

2. Notify Beneficiaries and Heirs

   • Comply with California Probate Code § 16061.7, which requires a formal notice to be sent to all beneficiaries and heirs

   • Start the 120-day period for contesting the trust

3. Inventory and Secure Assets

   • Identify and gather trust assets

   • Retitle assets into the name of the successor trustee if needed

   • Secure real estate, close decedent’s credit lines, etc.

4. Obtain Tax ID Number and Open Trust Bank Account

   • File IRS Form SS-4 for an EIN

   • Open a bank account in the name of the trust for paying bills and managing distributions

5. Pay Debts and Expenses

   • Notify known creditors

   • Review and validate claims

   • Pay final expenses, funeral costs, taxes, etc.

6. File Tax Returns

   • File final personal income tax return for the decedent (Form 1040)

   • File trust income tax returns (Form 1041), if applicable

   • Consider estate tax filings if needed

7. Account and Report

   • Prepare a trust accounting, if required

   • Share a report with beneficiaries describing the actions taken

8. Distribute Assets and Close Trust

   • Make distributions according to the terms of the trust

   • Obtain receipts and releases from beneficiaries

   • Close accounts and wind down the trust

A trust attorney can handle much of this workload, allowing the trustee to focus on decisions—not legal red tape.

Who Is the Attorney’s Client in a Trust?

A crucial legal nuance is who the trust attorney actually represents.

In Moeller v. Superior Court (1997) 16 Cal.4th 1124, the California Supreme Court clarified that the attorney represents the office of the trustee—not the individual person holding that role.

This means:

• Confidential attorney-client communications may transfer to a successor trustee.

• If the original trustee is accused of misconduct, the successor trustee may access those communications.

• The current trustee should hire separate, personal counsel—using personal funds—if their role becomes adversarial.

Are Trust Administration Fees Set by Law? No. And That’s Good News.

California’s statutory fee schedule for probate does not apply to trust administration. This opens the door to:

• Negotiable fee structures (hourly, flat rate, or capped)

• Greater cost control

• Flexibility based on the trust’s complexity

That said, vagueness about fees can still lead to disputes. Beneficiaries may question what the trustee pays themselves or their attorney.

That’s why well-drafted trusts often include specific language about administrative fees—how they’re set, approved, and paid.

➤ For details, see the California Probate Code § 10810, which outlines the statutory fee schedule for probate attorneys.

Plan Ahead to Make Life Easier for Your Loved Ones

Trust administration is usually faster, simpler, and more private than probate—but only when the trust is properly drafted and funded. A poorly written or silent trust can lead to confusion, legal wrangling, and even court battles.

Klaus Gottlieb, Esq. – Wealth Care Lawyer, prepares living trusts that include clear, enforceable fee provisions for future trust administration. These fee clauses are thoughtfully crafted to prevent misunderstandings and reduce the likelihood of conflict, helping your wishes be honored with clarity and confidence.

Clarity today means confidence tomorrow.

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