California Partition Law Blog
In California, the typical trust administration takes between 12 to 18 months to complete. The process can take significantly less time, ranging between 4 to 5 months, when distribution terms are straightforward. Oppositely, the distribution time frame can also take longer than 18 months depending on factors, like outstanding debts or real estate sales, which can cause significant delays in the distribution process. Ultimately, the asset distribution timeline relies heavily on the complexity of the estate and the trustee’s ability to carry out the trust’s terms.
What is a Trust?
A trust is a legal arrangement designed by the trust creator (also commonly known as the “Settlor”, “Grantor”, “Trustor”) to appoint a third-party (“Trustee”) to hold and distribute the trust assets to the trust’s designated beneficiary(ies). Distribution of trust assets most commonly occurs after the grantor’s death. A grantor creates a trust by placing a collection of assets and liabilities in the trustee’s control for the benefit of one or more beneficiaries. Once executed, a trust creates a fiduciary relationship with the trustee. (Jo Redland Trust, U.A.D. 4-6-05 v. CIT Bank, N.A., 92 Cal.App.5th 142.) A trustee is necessary to administer trusts because the nature of the trust’s fiduciary relationship with the property prevents the trust from suing or being sued, holding title to property, owning property, and entering contracts. (Portico Management Group, LLC v. Harrison, 202 Cal.App.4th 464, 473; Greenspan v. LADT, LLC, 191 Cal.App.4th 486, 521.)
A trust is a legal device often used in estate planning. A trust may be established in the trustor’s lifetime, or it may be established in the trustor’s will where it takes effect once the trustor dies and the will is admitted in probate. Generally, assets in a trust are distributed according to the trustor’s intent, which can be specified in the trust instrument or document.