So you’ve been named trustee, now what?

Part 3

Step Two: Hire an attorney.  

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. 

We cannot over stress the importance of hiring a good estate attorney to help you administer the trust. California Probate Code is a set of laws governing trusts, conservatorships, probated estates, guardianships, and power of attorney. Understanding the law includes not only CA Probate Code, but also related California Statutes: Civil Code, Commercial Code, California Rules of Court, Health and Safety Code, and others. It is one thing to peruse the code and be aware of it. It is a whole other level to fully understand how to apply the law. If you are not an attorney, please consider hiring an estate attorney to answer your questions - after you have read the trust - and to tell you the immediate steps you need to follow according to the law.

An attorney is essential when one or more beneficiaries are hostile. Let's assume that a family has loving parents who love all their children equally. Most often, families do get along well and manage to split the assets according to the trust and have little to no arguments. However, some cases that we see in our practice involve hostile siblings fighting over the assets, even when the parents were loving and careful to be equitable.   

We have seen long simmering hostilities lead to accusations of misuse of funds or breach of fiduciary duty, which can lead to litigation. A good attorney will "head 'em off at the pass" and protect you if the aggressor becomes litigious.  

Most non-attorneys would have no idea where to start. A good attorney will guide you through the steps, will be able to answer your questions, and ensure you understand your role and your boundaries. If you are looking for recommendations for an attorney, please reach out.