Legal Question in Wills and Trusts in California

Yes, a successor trustee has all the obligations (including fiduciary) and responsibilities of the original trustee.

Once the living trust become irrevocable, the trustee that is serving would be responsible for any reporting requirements.

The trust documents may in some cases exempt the trustee from some accounting requirements. Otherwise the trustee must account. The other attorneys are correct that the successor must meet the same requirements as if they were an original trustee.

The successor trustee of a trust has the obligation to account to the beneficiaries of the trust with respect the management, assets and affairs of the trust during the time he is trustee. That would include upon final distribution of the trusts assets. Whether he has to account for matters arising under the prior trustee is a different question. Often trust documents, especially in the case of a revocable trust during the settlor's lifetime, waive that obligation. Even if that is the case, the successor trustee would have to account for the assets in the trust at the beginning of his term.

The detail required will depend on the type of assets and other matters impacting the trust. A formal court accounting has a great deal of detail. It also, if the trust's assets are at all complex, can cost a fair amount to create. Often trustees and beneficiaries agree on something less, with an eye to saving costs for the trust. The key point is to obtain enough information, and in enough detail, to assure the beneficiries that the trust has been properly managed and all assets are accounted for.

If you need any further assistance, please feel free to give me a call,

Jon Reich

310.478.2541

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