1. Confirm Authority and Gather Core Documents

• Review the trust to confirm you are the acting trustee, whether anyone is serving with you, and what powers and limitations you have.

• Collect key documents: trust and amendments, pour-over will (if any), deed showing title in the trust, recent property tax bill, mortgage/loan statements, insurance policies, last several years of tax returns, and any prior appraisals.

• Obtain certified death certificates for each deceased settlor/trustee; many practitioners recommend around 8–12 copies for various institutions, though actual needs may vary by case.

2. Tax ID, Accounts, and Professional Team

• Obtain an EIN/TIN for the trust from the IRS if the trust is now irrevocable and no longer uses the grantor’s Social Security number.

• After consulting the appropriate professional, open or confirm a dedicated trust bank account for all trust income and expenses; avoid mixing trust and personal funds.

• Identify and engage the professional team: trust/estate attorney, CPA or EA familiar with trust and California tax, and possibly a financial advisor; request the client’s permission in writing to communicate directly with these advisors if they already exist.

3. Real Property Status and Safety

• Verify occupancy: determine whether anyone is living in the property, has keys, or is informally “checking on” the home.

• Confirm and maintain insurance: notify the insurer of the death and trustee change; confirm coverage is appropriate for a vacant or tenant-occupied home, as standard homeowner policies may not fully cover long-term vacancy.

• Arrange for ongoing basic maintenance (utilities, yard, pool, security, mail forwarding, etc.) to preserve value and reduce liability.

4. Heirs’ Personal Property and Estate Liquidation

• Clarify with the attorney how personal property is to be handled under the trust (e.g., specific bequests versus residue to beneficiaries).

• Allow heirs/beneficiaries a defined window to select items consistent with the trust terms, then document what is taken (photos, inventory list, signed receipts).

• After that window, consider hiring an estate sale liquidator or clean‑out service to inventory, sell, donate, or dispose of remaining contents; deposit all net proceeds into the trust account; seek referrals and assistance from your Realtor to leverage their resources.

5. Title, County, and Property Tax Issues

• Confirm title: obtain a current property profile or preliminary title report to ensure the trust is the record owner and to identify liens, loans, or other encumbrances.

• Work with counsel to record any required documents, such as an Affidavit of Death of Trustee and related papers, and to file any necessary Change in Ownership forms with the county assessor.

• Discuss with counsel and tax advisor whether any parent–child or other reassessment exclusions, or Proposition 19–related planning options, are available and worth pursuing.

6. Valuation and Step‑Up in Basis

• Arrange for a professional date‑of‑death appraisal of the real property, even if there is no immediate plan to sell; this supports the trust’s tax basis and can be critical if audited.

• Confirm with the tax advisor how the step‑up in basis applies (e.g., full or partial, depending on community property and trust structure) and how this affects potential capital gains if the property is sold later.

• Maintain a “bullet‑proof” file: appraisal report, closing statements when purchased and when sold, and all material improvements with receipts to support basis adjustments.

7. Trust Tax Compliance

• Confirm whether the trust (and decedent) have been filing required federal and state tax returns, including any prior Form 1041 (fiduciary income tax returns) and individual returns.

• With the CPA, determine what returns are now required: final personal returns for the decedent, fiduciary income tax returns for the trust, and any potential estate tax filings if thresholds are met.

• If the trustee lives outside California, confirm with the tax advisor whether there are filing obligations both in California (for California‑source income such as rent or sale of CA real estate) and in the trustee’s home state.

8. Strategy: Sell, Hold, or Rent

• Review the trust: some documents direct sale; others allow broad discretion. Identify whether there are timing requirements (e.g., sell within a certain period) or beneficiary occupancy rights.

• Evaluate options with professionals:

  • Sell and distribute proceeds

  • Hold for a period (e.g., for market conditions or for beneficiary planning)

• Consider risk, carrying costs, and fiduciary duties: vacancy may reduce wear/tenant risk but still requires insurance, security, and property tax/maintenance; renting can produce income but adds liability and administrative burden.

9. Beneficiary Communications and Notices

• Provide required statutory notices (e.g., notice to trust beneficiaries upon settlor’s death) as directed by the attorney; these notices may start important deadlines for contesting the trust.

• If a significant decision may be controversial (such as large renovations, renting, or holding versus selling), discuss with counsel whether to use a formal Notice of Proposed Action or similar procedure to reduce risk of later objections.

• Keep beneficiaries reasonably informed with periodic high‑level updates and, where appropriate, provide accountings in the form recommended by counsel.

10. Documentation and Record‑Keeping

• Keep detailed records of all trustee actions: invoices, receipts, contracts, communications, meeting notes, and logs of time spent on trust business.

• Track all income and expenses carefully in a simple accounting system so a clear report can be produced if requested by beneficiaries or required by court.

• Obtain and retain written approvals where appropriate (for example, from co‑trustees or from the attorney on major steps), understanding that beneficiaries’ consent cannot waive all fiduciary responsibilities.

11. Common Pitfalls to Watch For

• Assuming “the trustee can do whatever they want.” The trustee does have broad powers but must always act in the best interests of the beneficiaries and in line with the trust and law; ignoring beneficiary concerns can lead to disputes and personal liability.

• Overlooking “unfunded” assets: many people list bank or investment accounts on a schedule to the trust but never actually change title; confirm with counsel how to access these and whether a separate probate or small‑estate procedure is needed.

• Letting a high‑value property sit indefinitely without a plan: extended delay, poor maintenance, or lack of documentation around decisions can be seen as a breach of fiduciary duty, especially if the asset is worth several million dollars and not being used or productively managed.