Torrance and Surrounding South Bay Cities Trust Administration Attorneys

Administering an estate is an intricate and highly complex process, and can be confusing even for the most capable trustees. Our attorneys act as your experienced advisors at every step of post-death administration, ensuring that your loved one’s wishes are followed, your trustee obligations are fulfilled, and assets are distributed to heirs in accordance with the law.

Are you a successor trustee? We help you administer a trust smoothly without stress, surprise & fights.

What is Trust & Estate Administration?

Trust and estate administration is the legal process of managing and distributing a deceased person's assets according to their will, trust, or state law. This process involves handling financial obligations, paying taxes, managing assets, and distributing property to beneficiaries while ensuring compliance with legal requirements.

Trust and estate administration typically includes:

• Gathering and valuing assets
• Paying debts and taxes
• Managing ongoing financial obligations
• Distributing assets to beneficiaries
• Filing required legal documents
• Communicating with beneficiaries

Why Do You Need Professional Trust & Estate Administration?

Professional trust and estate administration ensures compliance with legal requirements while protecting both the estate and beneficiaries from costly mistakes. Even well-planned estates require proper administration to avoid legal complications and tax issues.

Risks of Improper Administration:

• Personal liability: Trustees and executors can be held personally responsible for mistakes
• Tax penalties: Missed deadlines can result in significant penalties and interest
• Beneficiary disputes: Improper handling can lead to family conflicts and litigation
• Asset devaluation: Poor management can reduce the value of estate assets
• Legal complications: Failure to follow proper procedures can void distributions

Our Trust & Estate Administration Services

Living Trust Administration

Living trust administration involves managing trust assets when the trustor becomes incapacitated or dies. Unlike probate, living trust administration is typically faster and more private. Our services include:

• Successor trustee guidance and support
• Asset inventory and valuation
• Trust accounting and record-keeping
• Beneficiary notifications and communications
• Asset management and investment oversight
• Distribution planning and execution

Probate Administration

Probate administration is the court-supervised process of settling an estate when someone dies without a trust or with assets outside their trust. Our probate administration services include:

• Probate petition filing
• Executor appointment and qualification
• Asset identification and appraisal
• Creditor notifications and claims management
• Court reporting and compliance
• Final distribution to beneficiaries

Estate Tax Returns

Estate tax returns must be filed within nine months of death for estates exceeding federal exemption limits. Our estate tax preparation services include:

• Federal Form 706 preparation
• California state tax returns
• Asset valuation and appraisals
• Tax minimization strategies
• Portability elections for married couples
• Extension requests when necessary

Asset Distribution

Asset distribution involves transferring property to beneficiaries according to the estate plan while maintaining asset protection benefits. Our distribution services include:

• Real estate transfers and deed preparation
• Personal Asset Trust℠ establishment
• Investment account transfers
• Business interest valuations and transfers
• Personal property distribution
• Final accountings and receipts

Trust Accounting

Trust accounting involves maintaining detailed records of all trust transactions and providing reports to beneficiaries. Our accounting services include:

• Monthly and annual trust statements
• Income and expense tracking
• Investment performance reporting
• Beneficiary distribution records
• Tax preparation support
• Court-required accountings

Trustee Services

Trustee services involve managing trust assets and making distributions according to trust terms. We provide:

• Corporate trustee services
• Successor trustee training and support
• Investment management oversight
• Beneficiary communications
• Trust modification assistance
• Dispute resolution services

How Does Trust & Estate Administration Work?

The trust and estate administration process follows specific steps to ensure proper handling of assets and compliance with legal requirements.

Step 1: Initial Assessment

We begin with a comprehensive review of the estate plan, assets, and legal requirements. This includes identifying all assets, debts, and beneficiaries.

Step 2: Asset Inventory and Valuation

We help gather all estate assets, obtain appraisals when necessary, and create a complete inventory for administration purposes.

Step 3: Legal Compliance

We ensure all legal requirements are met, including court filings, tax returns, creditor notifications, and beneficiary communications.

Step 4: Asset Management

We oversee the ongoing management of estate assets, including investments, real estate, and business interests during the administration process.

Step 5: Distribution

We facilitate the proper distribution of assets to beneficiaries while maintaining asset protection benefits and tax efficiency.

How Much Does Trust & Estate Administration Cost?

Trust and estate administration costs vary based on the complexity of the estate and the services required. Factors affecting costs include:

• Estate size: Larger estates typically require more administration work
• Asset complexity: Business interests and multiple properties increase costs
• Tax requirements: Estate tax returns and planning add to expenses
• Beneficiary issues: Disputes or complex distributions increase costs
• Court involvement: Probate administration typically costs more than trust administration

We offer fixed-fee quotes for many administration services to provide cost certainty. Trust administration is typically less expensive than probate administration because it avoids court supervision and reduces legal requirements.

How Long Does Trust & Estate Administration Take?

Trust and estate administration timelines vary depending on the complexity of the estate and the type of administration required.

Living Trust Administration:

• Simple trusts: 6-12 months
• Complex trusts: 12-18 months
• Ongoing trusts: May continue for years or decades

Probate Administration:

• Simple probates: 12-18 months
• Complex probates: 18-24 months or longer
• Contested probates: 2-5 years or more

Legal Requirements for Trust & Estate Administration

Trust and estate administration involves numerous legal requirements that must be followed to avoid personal liability and ensure proper distribution.

Federal Requirements:

• Estate tax returns for estates over $12.92 million (2023)
• Income tax returns for the estate
• IRS notifications and compliance
• Social Security and Medicare notifications

California Requirements:

• Probate court filings (when required)
• Beneficiary notifications
• Property tax assessments
• State income tax returns

Trust-Specific Requirements:

• Trust accountings to beneficiaries
• Asset transfer documentation
• Investment oversight responsibilities
• Distribution receipt documentation

Common Challenges in Trust & Estate Administration

Trust and estate administration can present various challenges that require professional expertise to navigate effectively.

Asset-Related Challenges:

• Valuation disputes: Determining fair market value of unique assets
• Liquidity issues: Converting assets to cash for expenses and distributions
• Investment management: Maintaining and growing estate assets during administration
• Real estate complications: Managing property transfers and tax implications

Beneficiary-Related Challenges:

• Family disputes: Resolving conflicts between beneficiaries
• Communication issues: Keeping beneficiaries informed and satisfied
• Unequal distributions: Handling complex distribution schemes
• Minor beneficiaries: Managing distributions to children

Legal and Tax Challenges:

• Tax compliance: Meeting all federal and state tax requirements
• Creditor claims: Handling valid and invalid creditor demands
• Court procedures: Navigating probate court requirements
• Deadlines: Meeting strict legal and tax deadlines

Guidance for Trustees and Executors

Serving as a trustee or executor carries significant legal and financial responsibilities. We provide comprehensive guidance to help you fulfill your duties properly.

Key Responsibilities:

• Fiduciary duty: Acting in the best interests of beneficiaries
• Asset protection: Safeguarding estate assets from loss
• Record keeping: Maintaining detailed financial records
• Communication: Keeping beneficiaries informed of progress
• Compliance: Following all legal requirements and deadlines

Common Mistakes to Avoid:

• Mixing personal and estate funds
• Making distributions before paying debts and taxes
• Failing to maintain proper records
• Not communicating with beneficiaries
• Missing tax and legal deadlines

Why Choose Kavesh, Minor & Otis for Trust & Estate Administration?

For over 40 years, The Law Firm of Kavesh, Minor & Otis has successfully administered over 4,000 estates and trusts throughout Southern California. Our extensive experience in estate administration provides you with the expertise needed to navigate complex legal requirements.

Our Administration Experience:

• 4,000+ estates successfully administered
• 1,000+ estate tax returns prepared
• 40+ years of administration experience
• Fixed-fee quotes available for most services

Our Comprehensive Approach:

• Full-service administration: From start to final distribution
• Tax expertise: Minimizing tax obligations and penalties
• Family communication: Keeping beneficiaries informed and satisfied
• Asset protection: Maintaining protection benefits during administration

Areas We Serve

Our trust and estate administration attorneys serve clients throughout Los Angeles County and Orange County, including:

Los Angeles County:

• Torrance
• Manhattan Beach
• Redondo Beach
• El Segundo
• Hermosa Beach
• Gardena
• Hawthorne
• Lawndale

Orange County:

• Newport Beach
• Irvine
• Costa Mesa
• Huntington Beach
• Laguna Beach
• Mission Viejo
• Anaheim
• Orange

Frequently Asked Questions About Trust & Estate Administration

What is the difference between trust administration and probate?

Trust administration is a private process that avoids court supervision, while probate is a court-supervised process required for estates without trusts. Trust administration is typically faster, less expensive, and more private than probate.

How long does trust administration take?

Trust administration typically takes 6-18 months depending on the complexity of the estate and assets involved. Simple trusts may be completed in 6-12 months, while complex trusts may take 12-18 months or longer.

Do I need an attorney for trust administration?

While not legally required, professional assistance is highly recommended due to the complexity of legal requirements and potential personal liability. Mistakes in administration can be costly and may result in personal liability for trustees.

What are the tax requirements for estate administration?

Estate administration may require filing federal estate tax returns, state tax returns, and income tax returns depending on the estate's size and income. Tax deadlines are strict and penalties for late filing can be significant.

Can beneficiaries challenge the administration?

Yes, beneficiaries can challenge administration if they believe the trustee or executor is not fulfilling their duties properly. Proper administration and communication can help prevent disputes and challenges.

What happens if assets are not properly distributed?

Improper distribution can result in personal liability for trustees and executors, tax complications, and legal challenges from beneficiaries. Professional guidance ensures proper distribution procedures are followed.

Have more questions? Visit our comprehensive FAQ page or read our estate planning blog for more insights.