Full question:
My parents, grantor of a trust, both passed away last year. I am the sole beneficiary of the trust and the last living trustee. What type of transfer documents do I need to transfer the trust to my name as sole beneficiary? I need all documents to complete transfer. I have already filed proper documents as sole surviving child on property taxes with the County.
- Category: Trusts
- Date:
- State: California
Answer:
The trust document outlines how property is distributed after the grantor's death. A trust continues to exist after the grantor dies, allowing the successor trustee to manage the trust estate and distribute assets to beneficiaries without court supervision, if permitted by the trust agreement.
A living trust is considered terminated when all assets are removed. To terminate a living trust, the trustee can remove all property and close any related accounts. If the trust had a federal or state identification number, the final year must be noted on the tax returns.
If real property is involved, you may need the following documents:
- Affidavit of Death of Trustee and Consent of Successor Trustee: This must be recorded for each real property held in the trust and should include a certified copy of the death certificate. Recording this changes the title from the deceased trustee to the new trustee(s).
- Preliminary Change of Ownership Form: This form should be completed and recorded alongside the affidavit to explain the recording to the county recorder.
- Exemption Form: If the living trust transfers ownership from parents to children or another exempt manner, complete the appropriate exemption form and send it to the county assessor's office.
If you are ready to distribute the assets and terminate the living trust, consider preparing a Trust Distribution and Termination Agreement. This agreement should include details about the successor trustees, distribution provisions, and any waivers of accounting, among other clauses that protect the successor trustee while finalizing the distribution of trust assets.
Due to the complexities involved, it’s advisable to consult a local attorney who can review all relevant facts and documents.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.