For context, in your own jurisdiction, what are the key steps of estate administration following an individual’s death? The procedures of an estate administration in California depend largely upon the nature and extent of a decedent’s assets and whether the decedent had a living trust in place at the time of his or her death. Where there is a living trust, the administration can proceed relatively quickly and privately. Many people mistakenly believe that a living trust avoids administration completely. However, this is not the case. Although most trust administrations occur outside the court’s supervision, there are still many important administrative tasks that must be completed. The successor trustee must fulfill his or her fiduciary duties to the beneficiaries, which requires some formality. In a routine trust administration, a trustee can expect to complete tasks such as sending notification and information to beneficiaries, marshaling assets, accounting to beneficiaries, addressing debts, completing required tax filings and distributing or managing trust assets in accordance with the trust instrument. Trustees are entitled to reasonable compensation for their services unless the trust instrument provides otherwise. A trust administration usually comes with significant cost savings, even if the trustee is represented by legal counsel. I usually recommend that trustees avoid attorneys that charge fees based on a percentage of the value of the trust’s assets – this almost always overcompensates the attorney. Hourly or flat rate billing tends to result in more reasonable attorney fees. If the decedent died after 1 April 2022 and the estate is a ‘small estate’ with a total value of less than $184,500, simplified procedures apply and no probate is required. Probate is similarly not required to transfer ‘non-probate’ assets such as those held in joint tenancy or those with pay-on-death beneficiary designations. Where the value of the decedent’s estate exceeds $184,500 and the Handling Estate Administration After Death 50 LAWYERMONTHLYMARCH 2023 Bereavement can be one of the most challenging periods of a person’s lifetime, often compounded by the need to organise assets and attend to other legal matters. In this feature, we examine the administration of trusts and estates in the wake of the holder’s death. Estate planning specialist Laura NelsonBecker provides insight into the process involved, as well as the critical role performed by lawyers throughout. Expert Insight
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