For Families

Family Support

Keeping families in harmony is a value we hold dear. We know that all families have unique dynamics and we want to ensure that after a loss, relationships do not deteriorate as emotions can run high and grief takes many forms and appears in waves.

We have found over many decades of doing this work that transparency is of utmost importance to keeping family peace. This means that all family members and beneficiaries deserve to know what is happening at every stage of a trust administration. We encourage trustees to be communicative and open and there are often times where decisions should be made collaboratively. Although the trustee is still ultimately in charge, honesty and transparency can go a long way.

Personal Property

Dividing up personal property can often be fraught for families. Even when it's not about the monetary value, the emotional attachment to certain items can lead to conflict. Many people just need some guidance on how to talk about and resolve sometimes inevitable situations where parties are vying for the same object. We at TrustParency PC have experience and ideas on how to solve these dilemmas whether it be through technology and new platforms or coming up with an iterative process that feels fair to all.

Collections

Whether it is art, jewelry, antiques, modern collections, clothes, heirlooms, books or real estate, we have the expertise on staff to assist with valuing and monetizing collections. We also have additional resources at our disposal for appraisals, shipping, auctions, estate sales and are equipped to handle or assist with any aspect of dealing with special collections.

Dividing and Distributing assets

The division of assets among beneficiaries often takes special consideration. Not all assets are easily divisible and often there are tax or financial consequences at time of distribution. In California, most assets get a step up in basis at death and there is little or no tax consequence at time of distribution. However, real property has special rules about reassessment for property taxes. IRAs and other tax deferred accounts usually pass by beneficiary designation and how one takes them can have large tax implications. We at TrustParency PC can guide the trustee through this decision-making process.

FAQs

How long do trust administrations usually take?

Trust administrations usually take less than one year. Of course it depends upon the complexity of the Trust and the underlying assets. Most trusts are used to simply pass wealth to beneficiaries. Common assets held by a trust are real estate, investment accounts and bank accounts. These types of assets and trusts are usually straightforward and the administration can be completed in a shorter period of time. Some trusts have ongoing trusts to manage the assets for the ultimate beneficiaries or they have engaged in complex tax planning or they have more complicated assets like business interests or partnership interests or extensive real estate holdings. Trust administrations for these types of trusts may take a little longer but we strive to keep the process on track and focused. If an estate tax return will be necessary (for estates and trusts over $13.6M) a trust administration will take at least 15 months and may need to be left "open" until the estate tax return is finalized.

What is my expected level of involvement as a beneficiary and not a trustee?

It is ultimately up to the Trustee as to how to involve beneficiaries. Often there is little a beneficiary can actually do, but they can easily be involved in decision making, assisting with clearing out real estate and distributing personal property. A Trustee will ultimately be liable for all acts but a Trustee may delegate certain duties.

I don't live in CA, how does this affect me?

A Trustee of a California trust need not live in California to administer a trust. But they do need to administer it according to CA law and will be subject to CA jurisdiction. Because Trust and probate laws vary from state to state, it is recommended to consult with a CA attorney before proceeding with a trust administration if the Trustee lives out of state.

What should I do if I suspect the trust is being mismanaged?

If beneficiaries suspect that a trust is being mismanaged, they have several courses of action. Initially, they should request a full accounting from the trustee, detailing all transactions related to the trust. This can often clarify concerns and provide transparency.

If the issue cannot be resolved through direct communication, beneficiaries might consider mediation or legal action. It’s crucial to consult with an attorney experienced in trust and estate law to explore the options available and to understand the legal implications and processes involved in challenging trust management.

What should I do if I cannot contact the trustee?

A Trustee has a duty to keep all parties reasonably informed. You may need some legal representation or the Trustee may need a reminder that they have a duty to communicate. With all of our clients, we stress the importance of clear communications with all parties at every stage of the administration.