Trust administration after death — the trustee's playbook

When a Florida revocable living trust is properly funded and the grantor dies, the successor trustee takes over. Unlike probate (which is court-supervised), trust administration runs out of court — but the trustee still has real fiduciary duties and a series of tasks to complete in roughly the right order.

Below: the trustee's playbook from death through final distribution. Plan for 4–8 months on a clean trust admin; longer if assets are complex or beneficiaries disagree.

Step 1 — Notify and organize (Week 1–2)

• Confirm grantor's death: get certified death certificates (8–12 copies; many institutions want originals).
• Locate the trust document: original signed copy, plus any amendments or restatements. Search the home, safe-deposit box, and attorney's files.
• Identify beneficiaries: per the trust document. Confirm contact info.
• Notify beneficiaries of the grantor's death and that you're serving as trustee. Florida has specific notice requirements (FS 736.0813).
• Locate trust assets: real estate, bank accounts, brokerage accounts, business interests. Pull statements as of date of death.
• Hire a Florida attorney: specialized in trust administration. We do this work routinely. Helps avoid costly mistakes.

Step 2 — Assume control of assets (Week 2–6)

• Bank and brokerage accounts: present trust certification + death certificate to each institution. They'll update titling to reflect the successor trustee.
• Real estate: determine what action is needed (deed of distribution to beneficiary, sale, refinance). Florida deeds typically straightforward when the trust owns the home.
• Investment accounts: continue managing prudently; don't liquidate without a plan.
• Business interests: notify any partners or co-owners; get current valuations.
• Get a tax ID for the trust: the trust becomes a separate taxable entity at the grantor's death. File for a federal EIN.
• Open a trust bank account: separate from the grantor's old accounts. All trust transactions flow through this.

Step 3 — Notice to creditors (optional but useful)

Trust administration doesn't have a mandatory creditor period (unlike formal probate's 90-day notice). However, trustees can voluntarily file a notice of trust with the probate court (FS 736.05055) and serve creditors, which can shorten the period during which creditors can claim against trust assets.

• Notice of Trust: filed with the clerk in the county where the grantor lived. Triggers creditor protections similar to probate.
• 3-month window: creditors who receive notice have 3 months to file claims against the trust.
• Whether to do it: depends on whether material creditors are anticipated. Most trust administrations skip it; some benefit from the protection.
• Coordinated with probate: if a probate is also open (for stray assets), the probate creditor period may suffice; trust notice may be redundant.

Step 4 — Inventory and tax filings (Month 2–4)

• Trust inventory: itemized list of trust assets at date of death with values. Provided to beneficiaries on request (Florida requires accounting under FS 736.0813).
• Decedent's final 1040: file by April 15 of year following death.
• Trust 1041s (if income is generated): annual income tax returns for the trust.
• Federal estate tax return (if estate exceeds federal exemption ~$13.6M): due 9 months after death. See our federal estate tax guide.
• Florida tax: no state income tax, no state estate tax. But Florida-source income may have considerations.
• Coordinate with CPA: most trust administrations involve a tax professional in addition to attorney.

Step 5 — Pay debts and expenses (Month 3–6)

• Last-illness expenses: legitimate hospital, hospice, in-home care costs.
• Funeral expenses: paid by the trust (or reimbursed if family fronted).
• Trust expenses: trustee fees, attorney fees, CPA fees, appraisal costs.
• Outstanding debts of the grantor: pay legitimate debts from trust funds.
• Mortgages and secured debts: continue payments or pay off; coordinate with planned distribution.
• Final tax liabilities: federal income, federal estate (if applicable).
• Reserve for contingencies: keep some cash in trust account for unexpected expenses through final distribution.

Step 6 — Distributions to beneficiaries (Month 4–8)

Trust distributions follow the trust document's instructions. Common patterns:

• Outright distribution to named beneficiaries: straightforward; deliver assets per trust terms.
• Distribution to sub-trusts: continuing trusts (e.g., for minor children, special needs beneficiaries) require setup of the sub-trust as a continuing entity.
• Specific bequests first (Mom's ring to Sarah, the boat to Tom, etc.).
• Residue distributed proportionately among residuary beneficiaries.
• Communication: send beneficiaries an accounting before distribution. Get sign-offs (waivers and receipts) when possible.
• Withhold tax on distributions if required (some distributions trigger income tax to beneficiaries).

Step 7 — Final accounting and closure (Month 6–8)

• Final accounting: shows everything that came in, everything that went out, and current balance.
• Distribute to beneficiaries: send the accounting; request waivers and releases.
• Reserve closeout: distribute any remaining reserves once you're confident no surprises remain.
• Close trust accounts: when reserves are distributed, close the trust bank account.
• Final tax filings: final 1041 marked 'Final' to terminate the trust.
• Document retention: keep trust records for at least 6 years (matching probate retention; longer for complex matters).

Common mistakes

• Skipping the notice and accounting requirements: Florida statute requires notice within 60 days and accounting on request. Trustees who skip these create liability.
• Mixing personal and trust funds: always keep trust accounts separate. Even temporary commingling creates problems.
• Distributing too early: before paying debts and tax liabilities, you can be personally liable.
• Not communicating with beneficiaries: silence breeds suspicion. Monthly status emails prevent most disputes.
• Self-dealing: trustees can't favor themselves over other beneficiaries. If you're both trustee and beneficiary, document carefully and treat all beneficiaries equally.
• Ignoring tax planning: distributions can trigger income tax to beneficiaries. Coordinate with the CPA.
• DIY for complex trusts: $1M+ trusts, blended families, special needs beneficiaries — these need professional involvement.

When to ask for help

• Beneficiaries are fighting or asking pointed questions about your decisions.
• Asset complexity is beyond your ability to value or manage (business interests, multi-state real estate, illiquid investments).
• Tax issues that require specialized planning (federal estate tax, complex income tax, generation-skipping transfers).
• Co-trustee disagreements that won't resolve.
• You feel overwhelmed: it's reasonable to ask the court (or trust beneficiaries by consent) to appoint a successor or co-trustee.

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