Being a Fiduciary has innate challenges, one of which is keeping track of your data and keeping your data organized. The probate code requires every transaction to have a date, payee/payor, description of the transaction, and an amount. The probate code requires accountings to balance down to the penny. If you don't have one or more of these components, a probate referee may reject the accounting.

Now that you’ve read the trust instrument, and obtained counsel, it’s time to get your systems in place to manage your data and keep it organized. As trustee, you’re responsible for tracking all income and expenses pertaining to trust assets as well as making the assets “productive”.

This is a crucial step. Unless you’re already well versed in California Probate Code, or have worked in an adjacent field, this is strongly encouraged. Every professional fiduciary has a legal team, maybe multiple, to provide expert counsel regarding the administration process. Not only does this provide you with knowledge, it also insulates you from potential breaches of fiduciary duty. As a trustee, you’re not expected to be an expert in every aspect of the job. You’re the supervisor, the team lead, the conductor of the orchestra. Your job is to build a team of experts to advise on the legal requirements of the trust, and act on their advice. 

Obtain a copy of the trust and read it. It is imperative that you read the trust and understand its instructions.   The trustee or co-trustees (and only the trustees) have a legal obligation for all the assets in the trust, managing those assets, and distributing the assets per the instructions of the trust.

Most of those thrust into the role of trustee, conservator, or guardian aren’t professional fiduciaries trained in the intricacies of trust and estate management. They are sons and daughters, siblings, parents, cousins, or loyal friends who are viewed as responsible, organized, and ethical. But being a trustee is a complicated occupation, and to be very clear, it is a full time occupation. Managing an estate is highly complex, with a lot of moving parts. It has strict legal requirements, which if not followed can lead to personal consequences for the trustee/administrator.