Public Filings and Notice of Administration

• The trustee must file a notice of death with the county assessor of each county in which the grantor owned real property, as well as with the superior court of the country in which the grantor was living at the time of death. In addition to filing public notices, the trustee must mail notice of administration to trust beneficiaries by certified mail. Notice of administration certifies that trust administration is underway and provides instructions for contesting the living trust. Trustees in California have 60 days to file the notice of administration, whereas trustees in Pennsylvania have no specific time limit. In all states, trustees are expected to act with prudence. Beneficiaries in Florida have three months after receiving a notice of administration to contest the living trust; beneficiaries in California, on the other hand, have four months. Deadlines vary widely from state to state.
  
  

Collection of Trust Property

• Often, trustees don't have access to trust property and, in certain cases, must enter the grantor's residence in search of financial documents, property titles, tax return papers and other documents that may reveal the location of undisclosed property. In general, state probate codes don't limit the collection of trust property to a specific time limit. However, trustees must begin searching for trust property as soon as trust administration begins. Certain states hold trustees liable for lost, damaged and stolen trust property.
  
  

Estate Taxes

• Estate taxes are due by April 15 following the year of death. If the living trust uses a fiscal year, estate taxes are due by the 15th day of the fourth month. The trustee must file the living trust's tax returns on time and pay a tax on all property owned by the living trust at the time of death. At the time of publishing, a living trust can hold up to $5 million in property before triggering the estate tax.
  
  

Property Distributions

• Property distributions are made in accordance with the trust agreement. Often, a living trust agreement has distribution provisions defining when and under what circumstances property may be distributed to beneficiaries. Distribution provisions are common for minor beneficiaries. The trustee must comply with all dates of distribution or as instructed by the grantor.
  
  

In Perpetuity

• A living trust can't remain open forever. A living trust can typically remain open for up to 90 years, or 21 years from the date of death of the parties living when the living trust was first set up.