Charting the Course: Trust Administration vs. Probate in California

The short answer

In California, trust administration is the private, out-of-court process of settling a living trust after death. Probate is the court-supervised process for assets a person owned in their own name. Trust administration usually costs less and stays private, but the successor trustee must still complete seven steps and meet legal deadlines.

•      Trust administration: no court, often 12 to 18 months, run by the successor trustee.

•      Probate: court-supervised, typically 9 to 18 months, with fees set by statute.

•      Key trust deadlines: 30 days to lodge the will, 60 days to notify heirs and beneficiaries, 150 days to notify the county assessor.

•      Probate threshold: assets outside a trust totaling more than $208,850 generally require probate.

•      Biggest risk: a trustee can be personally liable for mistakes.

Two routes to the same harbor: trust administration and probate

When someone dies in California, their estate has to reach the same harbor either way: debts paid, taxes filed, and property delivered to the right people. There are two routes to get there. If the person left a funded living trust, the family sails the trust administration route. If not, the estate usually goes through probate.

Think of probate as a passage through a busy commercial port. A harbor master, the Superior Court, clears every movement, and nothing leaves the dock without a signed order. Trust administration is open-water sailing. No one stops you at the breakwater, but no one checks your navigation either.

That is the point most families miss. A trust lets you skip the port. It does not let you skip the voyage. The successor trustee is the captain, and the captain answers for the ship.

This guide charts both routes from cast-off to final mooring, so you can see how they compare and where the hazards lie.

Trust administration vs. probate: the chart at a glance

The two routes differ most in who is in command, how public the voyage is, and what the passage costs.

	Trust administration	Probate
Who is in command	The successor trustee named in the trust	An executor or administrator appointed by the court
Court involvement	None, unless someone files a petition	Required from start to finish
Privacy	Private; the trust is not filed with the court	Public; the will and filings are court records
Typical time	Often 6 to 18 months	Typically 18 to 30 months
Cost	Fees for the work actually done, paid from the trust	Fees set by statute on the gross value of the estate
Authority to act	Immediate, with a death certificate and certification of trust	Only after the court issues Letters
Selling real estate	Trustee can sell under the trust's terms	Follows court rules and notice periods
Deadline for challenges	120 days after the trustee's notice is served	120 days after the will is admitted
Who watches for mistakes	No one, until a beneficiary or tax agency objects	The court reviews the inventory, accounting, and distribution

The last row is the one to remember. On the trust route there is no harbor master. That is the benefit, and it is also the risk.

The trust route: the 7 steps of California trust administration

Trust administration has seven legs, and several carry legal deadlines that start running on the date of death. At death the trust becomes irrevocable and the successor trustee takes the helm.

1.          Muster the documents and secure the vessel.

•       Find the original trust, every amendment, and the will.

•       Order certified copies of the death certificate.

•       Lodge the original will with the Superior Court within 30 days, even if no probate is expected.

•       Secure the home, vehicles, valuables, and mail. Do not hand anything to heirs yet.

2.         Send the required signals.

•       Serve the trustee's notification on every heir and beneficiary within 60 days. That notice starts the 120-day clock to contest the trust.

•       Notify Medi-Cal (the Department of Health Care Services) within 90 days if the person received benefits.

•       File a change in ownership statement with the county assessor within 150 days.

•       If a child will inherit the family home, have them move in and claim the parent-child property tax exclusion within one year.

3.         Take the helm of every asset.

•       Prepare a certification of trust for banks and title companies.

•       Get a new tax ID number (EIN) for the trust.

•       Record an affidavit of death of trustee for each piece of real estate.

•       Move bank and brokerage accounts into your name as trustee.

•       Collect life insurance, annuities, and retirement accounts.

4.         Take soundings: inventory and value everything.

•       List every asset and every debt as of the date of death.

•       Get date-of-death appraisals for real estate and business interests. They set the stepped-up tax basis for the heirs.

•       Keep trust money separate from your own at all times.

5.         Settle accounts with creditors and the tax authorities.

•       File the person's final income tax returns.

•       File yearly income tax returns for the trust.

•       File a federal estate tax return within 9 months if one is required or useful.

•       Pay valid debts and final expenses. Reject improper claims.

6.         Divide the cargo and report to the crew.

•       Fund any sub-trusts the document requires, such as a survivor's, bypass, or special needs trust.

•       Give beneficiaries a full accounting of every dollar in and out.

•       Get written approvals and releases before distributing.

7.         Make port: distribute and close.

•       Hold back a reserve for final taxes and bills.

•       Sign and record deeds, and transfer accounts to the beneficiaries.

•       File final returns, collect receipts, and close the trust accounts.

Distribution is the last leg for a reason. A trustee who pays heirs before debts and taxes may have to make up the difference personally.

The probate route: the 8 steps of California probate

Probate has eight legs, and the court signs off at the start, in the middle, and at the end. It applies when a person dies owning assets in their own name, with or without a will, above California's small-estate limit of $208,850.

1.          File the float plan.

•       Lodge the original will with the Superior Court within 30 days.

•       File a Petition for Probate in the county where the person lived. It asks the court to admit the will and appoint a personal representative.

2.         Signal all hands.

•       Mail a notice of the hearing to every heir and beneficiary at least 15 days before the hearing.

•       Publish the notice in a local newspaper.

3.         Receive your commission.

•       The first hearing is usually set 30 to 45 days after filing.

•       The judge signs an order and the clerk issues Letters. Letters are the document that gives the personal representative authority to act. Some estates also need a bond.

•       Until Letters issue, no one can sell, transfer, or collect the estate's assets.

4.         Take stock of the hold.

•       Open an estate bank account and gather the assets.

•       File an Inventory and Appraisal within four months of Letters. A court-appointed probate referee values real estate, businesses, and most non-cash assets.

5.         Clear the creditors.

•       Send notice to known creditors and to Medi-Cal and the Franchise Tax Board where required.

•       Creditors have four months from Letters, or 60 days from their notice if later, to file claims.

•       Pay valid claims and formally reject improper ones.

6.         Manage the estate under way.

•       Pay ongoing bills, maintain and insure property, and sell assets if needed. Some actions require advance notice to the heirs or court approval.

•       File the person's final income tax returns and the estate's own returns.

7.         Submit the log for inspection.

•       File a final account and petition for distribution. It reports every receipt and payment and proposes who gets what.

•       The court sets another hearing and reviews the account, the fees, and the plan.

8.        Make port: distribute and be discharged.

•       After the judge signs the order, transfer the property and collect signed receipts.

•       File the receipts and ask the court to discharge you from the role.

The four-month creditor period cannot be shortened. Even a simple, uncontested probate therefore takes about six months, and most take 9 to 18.

The cost of passage: probate fees vs. trust administration costs

Probate fees are set by statute as a percentage of the gross estate, and the attorney and the personal representative are each entitled to the same amount. The schedule is 4% of the first $100,000, 3% of the next $100,000, 2% of the next $800,000, and 1% of the next $9 million.

Gross estate value	Attorney's statutory fee	Personal representative's fee	Combined
$500,000	$13,000	$13,000	$26,000
$1,000,000	$23,000	$23,000	$46,000
$2,000,000	$33,000	$33,000	$66,000
$5,000,000	$63,000	$63,000	$126,000

"Gross" is the catch. A $1 million home with an $800,000 mortgage counts as $1 million. Court filing fees, the probate referee, newspaper publication, and any bond are added on top.

Trust administration has no statutory fee schedule. Legal fees reflect the work the trust actually needs, and they are generally paid from the trust, not from the trustee's own pocket. For most families the trust route costs less, finishes with less delay, and stays private.

Those savings are only real if the voyage is navigated correctly. One missed deadline or one early distribution can cost more than the fees a trust was meant to avoid.

Hidden shoals: common successor trustee mistakes

Most trust administrations that run aground hit one of six hazards, and none of them is marked on the chart.

•      Assets left on the dock. A trust only controls what was titled in its name. If accounts or property left outside the trust total more than $208,850, the family may need a probate anyway, alongside the trust administration.

•      A late or defective notice. If the trustee's notification is late or missing required language, the 120-day contest clock may never start. The trust stays open to challenge.

•      Missed assessor filings. Skipping the change in ownership statement brings penalties. Missing the parent-child exclusion can mean the family home is reassessed at today's value.

•      No date-of-death appraisal. Without one, heirs cannot prove their stepped-up basis and may overpay capital gains tax when they sell.

•      Paying heirs too early. If debts or taxes surface after the money is gone, the trustee can be personally liable.

•      A thin logbook. Beneficiaries have a right to an accounting. A trustee who cannot document every dollar can be ordered by a court to repay it.

A trustee is a fiduciary, held to the same standard whether they are a professional or a grieving son or daughter. Most people take the helm exactly once in their lives, in the hardest weeks they have known.

Questions and answers about trust administration and probate in California

Does a living trust avoid probate in California?

Yes, for the assets that were titled in the trust's name. Assets left outside the trust may still need probate if they total more than $208,850.

How long does trust administration take in California?

Often 6 to 18 months. Real estate sales, tax returns, or a family dispute can add time. The trust cannot safely close until debts, taxes, and the 120-day contest period are resolved.

How long does probate take in California?

Typically 18 to 30 months. The four-month creditor claim period cannot be shortened, so even a simple probate takes about six months.

How much does probate cost in California?

Fees are set by statute on the gross value of the estate. On a $1 million estate, the attorney and the personal representative are each entitled to $23,000, plus court costs.

What does a successor trustee have to do first?

Find the original trust and will, order death certificates, and secure the property. Then lodge the will with the court within 30 days and send the trustee's notification within 60 days.

How long do beneficiaries have to contest a trust in California?

120 days from the date the trustee's notification is served, or 60 days after a copy of the trust is delivered during that period, whichever is later. A late or defective notice may never start that clock.

Do I need a lawyer to administer a trust in California?

The law does not require one. But a trustee is personally liable for mistakes, and the deadlines and tax rules are easy to miss. Most trustees hire an attorney for at least the notices, transfers, and accounting.

Who pays the attorney for trust administration?

Reasonable legal fees for administering the trust are generally paid from the trust's assets, not by the trustee personally.

Is a trustee personally liable for mistakes?

Yes. A trustee who distributes too early, mixes funds, or fails to account can be ordered by a court to repay the loss from their own money.

What happens to property taxes when a child inherits a parent's home?

The home is reassessed at current value unless an exclusion applies. Under Proposition 19, it must have been the parent's primary residence, and the child must move in within one year and file a claim.

What if an asset was left out of the trust?

It usually passes under a pour-over will. If the assets outside the trust total $208,850 or less, a small-estate affidavit may work. Above that, a probate is generally required.

When can a trustee distribute the inheritance?

After debts, expenses, and taxes are paid or reserved for, and ideally after the 120-day contest period ends. Distribution is the last step, not the first.

Why bring a pilot aboard: how a trust attorney helps

Even experienced captains take on a harbor pilot in unfamiliar water, and OC Elder Law serves that role for trustees and executors. The pilot does not take the ship away from you. The pilot knows where the shoals are.

On either route, we handle the navigation so you can look after your family:

•      Notices and deadlines. Every required notice prepared, served, and tracked.

•      Title and transfers. Deeds, affidavits, and account changes done correctly the first time.

•      Taxes and valuations. Appraisals and returns coordinated with your CPA.

•      Accounting and distribution. Clear reports, signed releases, and a clean close.

•      Probate, when it cannot be avoided. Petitions, hearings, and court filings from start to discharge.

If you have been named a successor trustee or executor, or you want your own plan to spare your family the probate route, we would be glad to help you chart the course.

About the author

Marty Burbank is the founding attorney of OC Elder Law in Fullerton, California, which has served Orange County families since 2003. He holds a JD and an LLM in Tax Law from Chapman University. Before law, he served 13 years in the U.S. Navy as a deep sea diver, which is where the nautical habit comes from.

Last reviewed: November 14, 2026.