Hi. I’m Amir Atashi Rang.
And I’m Laura Hawkins. ​ We’re with the Atashi
Rang Law Firm, and we’re going to talk to you a
little bit further about what a successor trustee has
to do. In addition to the more well-known steps the
successor trustee has to take, you will be
responsible for filing the last income tax returns for
the decedent. You may also have to file a
fiduciary income tax return. This basically means that
the trust estate, while it’s pending, has to account for
its own income taxes. It’s through a Form 1041. Now
it’s very important to note that if the successor
trustee does not file a fiduciary income tax return,
then he or she may be personally liable for those
taxes. The next step in the trust administration is
the accounting. The California Probate Code
requires that a successor trustee who is administering
an irrevocable trust prepare and render an accounting of
their actions and administration of the trust.
To satisfy that legal requirement, you must keep a
detailed accounting records of the trust. Now, after
all the assets have been collected and marshaled,
after the debts have been paid, after the successor
trustee deals with the decedent’s income tax return
and the fiduciary income tax returns, and as Laura just
mentioned, after the successor trustee renders a
formal accounting to the beneficiaries, then the
trust is in a position to assess making distributions
to those beneficiaries. Due to the complicated nature of
all these moving pieces, it’s really important for a
successor trustee to work with attorneys like us to
make sure that they are complying with all the rules
and regulations. This video has been brought to you
by the Atashi Rang Law Firm, where we’re building
lifetime relationships, one client at a time. Thank
you for watching.