Trustee Duties After a Grantor's Death: First 90 Days Checklist

When a loved one passes, the successor trustee steps into a role that is both compassionate and highly practical. Your job is to protect the trust, follow the terms faithfully, and communicate clearly with beneficiaries and interested parties. This first-90-days checklist is designed to help you move confidently, avoid common mistakes, and keep the administration on track. If you need help, our attorneys can guide you through each step. Contact us by either using the online form or calling us directly at 414-253-8500 for legal assistance (use our secure contact form).

Trustee Duties After a Grantor's Death: What Changes and What Starts

When the grantor dies, most revocable living trusts become irrevocable. That shift triggers the trustee's legal duties:

Fiduciary duty of loyalty and prudence. Act solely in the interests of the beneficiaries. Avoid conflicts, treat beneficiaries impartially, and document your decisions.
Duty to marshal and safeguard assets. Locate, secure, and value trust property.
Duty to follow the trust instrument. The trust document governs-read it closely, including any instructions on debts, taxes, and distribution sequencing.
Duty to inform and account. Beneficiaries are entitled to timely, accurate information.

Tip: If there is a pour-over will, you may also interact with the probate court for non-trust assets. Learn how probate and trusts differ in our resource on what probate is and why families often seek to avoid it.

The First 24-72 Hours: Stabilize and Secure

Your very first steps are about safety, continuity, and documentation.

Immediate actions:

Locate the most current trust and will. Confirm you are the named successor trustee and whether any co-trustees must act with you.
Order death certificates. Request 10-15 originals from the funeral home or vital records office; banks, insurers, and title companies will ask for them.
Secure property and information.
- Change or rekey locks if appropriate.
- Photograph conditions of real property and valuable items.
- Forward mail; suspend newspaper deliveries.
- Safeguard cash, checkbooks, and portable valuables.
- Preserve digital assets: devices, logins (if known), and email accounts.
Care for dependents and pets. Arrange temporary care consistent with any instructions left by the grantor.
Coordinate funeral/memorial arrangements if you are the person designated to do so. Keep receipts for any trust-permitted expenses.
Prevent asset loss.
- Notify homeowner's insurer and ask about vacancy endorsements.
- Maintain utilities to avoid damage.
- Consider winterizing, landscaping, or other property preservation steps.

Avoid: Distributing heirlooms or funds "just to keep the peace." Early distributions create risk and complicate accounting.

Days 3-10: Establish the Trust's Administrative Core

This is where you formalize your authority and set up clean books and records.

Accept the trusteeship in writing. If the trust requires a written acceptance or an affidavit of successor trustee, complete it now.
Obtain a Tax ID (EIN) for the trust. Once the grantor dies, do not use the grantor's Social Security number for trust banking. The trust needs its own EIN.
Open a trust-only bank account. Deposit incoming funds here. Never commingle trust funds with anyone's personal account.
Begin an asset spreadsheet and document vault. Track account numbers, custodians, titled owners, cost basis, and who you spoke with. Save every statement and letter.
Contact key institutions (but don't rush forms you don't understand):Banks, brokerages, life insurers, annuity carriers, mortgage servicers, and safe-deposit providers. Note requirements for retitling and claim processing.
Review beneficiary-designated assets. 401(k)s, IRAs, annuities, and life insurance typically pass by beneficiary designation, not by the trust document-unless the trust is named as beneficiary. For background, see our overview of beneficiary designations.
Start a communications file. Date-stamped copies of letters or emails to beneficiaries, advisors, and counterparties will save you time later.

Caution: Some financial institutions will ask you to sign affidavits or indemnities. Read before signing. If the form language shifts liability to you personally, get legal advice first.

Days 11-30: Notify, Inventory, and Preserve Value

With the foundation set, you'll make notifications and assemble a working inventory.

Beneficiary Notifications and Information Rights

Send a plain-English notice confirming the grantor's death, that you are serving as trustee, and that you will provide updates as information becomes available.
Offer to share the relevant trust sections beneficiaries are entitled to see. Keep the tone factual and courteous-contentious emails become exhibits in disputes.
Set expectations on timing. Explain that valuation, claims, and tax review must come before distributions.

Build the Initial Inventory

Create a working inventory (you'll refine it later):

Financial accounts: Checking, savings, brokerage, CDs, HSA, and digital-only accounts.
Retirement & insurance: IRAs, 401(k)/403(b), pensions, annuities, life insurance.
Real estate: Residence(s), rentals, land; note deeds, mortgages, HOA dues.
Business interests: LLC units, partnership interests, private stock.
Tangible personal property: Vehicles, jewelry, artwork, firearms.
Digital assets: Domain names, crypto wallets, online payment accounts.

Request date-of-death (DOD) valuations. For real estate and closely held businesses, engage qualified appraisers. The valuation work supports the step-up (or step-down) in cost basis that often reduces capital gains for beneficiaries.

Preserve and Protect

Insurance checkup. Confirm adequate property, liability, and special-risk coverage.
Maintenance plan. Lawn, snow, security systems-document expenses and vendor agreements.
Brokerage strategy. You are not required to "beat the market," but you are expected to act prudently. Consider short-term liquidity needs before selling assets.

Pro move: Keep a one-page status snapshot you can share: What's secured, what's pending, and what's next.

Days 31-60: Claims, Taxes, and Compliance

This phase is about verifying debts, preventing overpayment, and positioning the trust for clean tax filings.

Evaluate and Prioritize Debts

Collect creditor correspondence. Credit cards, medical bills, final utilities, and personal loans may be claims against the estate or against the trust-your lawyer can help you sort which is which.
Confirm validity before paying. Do not pay every bill that arrives. Some debts are unenforceable or lower priority.
Track interest and late fees. Where appropriate, request holds while you verify claims.

Need a primer on how debts and taxes are handled when a court proceeding is involved? Review our explainer on paying debts and taxes in probate.

Tax To-Dos (Trust & Estate)

Identify required returns.
- The decedent's final Form 1040 (individual income tax).
- The trust's Form 1041 (fiduciary income tax), if the trust has taxable income.
- Possible estate tax return if thresholds are met.
Basis records. Keep DOD valuation statements; beneficiaries will need them for future sales.
Estimate cash needs. Hold sufficient reserves for taxes and administration expenses before contemplating distributions.

Communication & Accounting

Send a 30-60 day update to beneficiaries with a high-level inventory, what's valued, claims received, and anticipated next steps.
Keep a running accounting (income, expenses, interim balances). You'll use this for your formal accounting later.

Red Flags & Risk Areas in the First 90 Days

Conflicts of interest. Are you also a beneficiary? If so, document neutrality and consider co-signatures for key actions.
Contested-trust risk. If you sense tension, be measured with disclosures and deadlines. Our overview on no-contest clauses explains what these provisions do-and don't-cover.
Gifts or loans made shortly before death. These can trigger disputes or tax questions; flag them for counsel.
Out-of-date beneficiary forms. A stale retirement account designation can override the trust's wishes-verify forms early.

Communication Habits That Prevent Disputes

Cadence: Commit to a regular update schedule (for example, 30, 60, and 90 days).
Clarity: Use short paragraphs, bullet points, and avoid legal jargon.
Neutrality: State facts, not opinions. If you're waiting on a third party, say so and set a follow-up date.
Documentation: After every significant call or meeting, send a brief recap email.

What Not to Do as a New Trustee

Don't co-mix funds. One trust account, properly titled, for all inflows and outflows.
Don't guess at deadlines. Tax and notice windows vary; missing one can be costly.
Don't make "advances" to beneficiaries. Until you've confirmed assets, debts, and taxes, advances create personal risk.
Don't ignore digital assets. Email, cloud storage, and financial apps often contain crucial records and value.
Don't sign personal guarantees. Keep signature blocks precise: "Jane Doe, Trustee of the Doe Family Trust dated [date]."

When Probate Still Happens (Even With a Trust)

Pour-over assets. Items titled in the decedent's name alone may need a probate proceeding to "pour over" into the trust.
Small-estate thresholds. Some jurisdictions allow simplified transfers; confirm rules before filing.
Jointly owned property & TOD/POD assets. These typically transfer by title or beneficiary designation outside the trust.
For a plain-language overview, see navigating the probate process.

Days 61-90: From Stabilization to Strategic Action

By this stage, you've secured assets, opened accounts, and started valuations. Now you shift toward formal accounting, claim resolution, and distribution planning-without rushing to the finish line.

Formalize the Accounting

Reconcile every account (trust checking, brokerage, high-yield cash) against statements since the date of death.
Categorize transactions as income vs. principal, administrative expense vs. capital expense.
Build a draft inventory and accounting you can share with beneficiaries: opening values, receipts, disbursements, and current balances.

Resolve Creditor Claims Methodically

Confirm which debts the trust is actually responsible for. Some obligations belong to the probate estate or terminate at death.
Verify balances and demand proof (invoices, contracts).
Negotiate when appropriate. Many creditors will accept reduced settlement when paid promptly.
Document resolutions in your accounting and keep payoff letters.

Prepare for Tax Filings

Coordinate with a CPA on the final 1040 and, if applicable, the trust's 1041.
Elect the trust's tax year strategy (calendar year vs. fiscal year, if permitted) based on expected receipts and deductions.
Track basis for all assets using date-of-death values. Beneficiaries may rely on your records years from now.

Distribution Planning Without Creating Risk

No distributions should occur until you are comfortable with asset values, creditor exposure, and tax reserves. Then:

Set an administrative reserve. Hold back cash for taxes, remaining expenses, and contingencies.
Honor specific gifts first. Example: a cash bequest or a named artwork. Confirm availability and value.
Handle percentage or residue gifts next. Split remaining assets per the trust's instructions after specific gifts and reserves.
Consider in-kind vs. cash. Distributing an asset (e.g., securities) may preserve value and reduce transaction costs.
Use receipts and releases. Ask recipients to sign a simple acknowledgment of what they received and the valuation used.

Practical note: Interim distributions can be appropriate if you've completed valuations and set a prudent reserve. Keep the paper trail airtight.

Real Estate: Title, Insurance, and Practicalities

Title work. Record appropriate trustee's affidavits or deeds before listing or transferring property. Confirm whether the trust or beneficiaries will take title.
Insurance continuity. Notify carriers of occupancy changes; confirm coverage through closing or transfer.
HOA & municipal letters. Request estoppel letters, status confirmations, and payoff figures (if any).
Property taxes & reassessment. Calendar deadlines for homestead changes, exemptions, or possible reassessment applications.
Sale vs. distribution. Selling may simplify equalization; distributing can preserve sentimental value. Evaluate both against the trust's terms.

Retirement Accounts, Annuities, and Life Insurance

Beneficiary-driven assets. IRAs, 401(k)s, annuities, and life insurance typically transfer by beneficiary form, not by the trust (unless the trust was named).
Post-death choices matter. Beneficiaries should coordinate required minimum distribution (RMD) timing and payout options under current federal rules.
Spousal vs. non-spousal rules. Spouses often have more flexible options; non-spousal beneficiaries commonly must distribute within a fixed window.
Avoid unforced errors. Do not retitle retirement accounts into the trust unless the documents direct it and you've confirmed tax implications.

Business Interests and Unique Assets

Operating agreements & buy-sell terms. Review transfer restrictions, valuation mechanisms, and notice requirements for LLCs or closely held corporations.
Professional valuations. For private enterprises, a credible valuation supports tax filings and equitable distributions.
Special assets:
- Firearms: Follow applicable transfer laws and storage requirements.
- Collectibles & art: Obtain specialized appraisals and consider provenance.
- Digital assets & crypto: Inventory wallets, seed phrases, and exchange accounts. Record cost basis carefully.

Communication Templates You Can Borrow

Initial Beneficiary Notice (outline):

Acknowledge the grantor's passing and your role as trustee.
Confirm you're gathering information and will share updates.
Provide a preferred contact method and cadence (e.g., 30/60/90 days).
Invite beneficiaries to share any documents or asset leads.
Thank them for their patience during the information-gathering period.

60-90 Day Update (outline):

Snapshot of assets secured and approximate values.
Claims received and status (paid, under review, disputed).
Tax items in progress (returns planned, reserve set).
Next steps and estimated timing for distributions (if appropriate).

Tone matters. Keep updates neutral, factual, and brief.

Trustee Compensation, Time Records, and Reimbursement

Keep a time log from day one. Date, task description, and duration.
Charge reasonably under the trust terms and applicable law; consider complexity, time, and outcomes.
Reimbursement is allowed for legitimate expenses (postage, appraisals, mileage) incurred on behalf of the trust. Keep receipts.

When to Seek Court Guidance or Mediation

Ambiguous instructions in the trust.
Beneficiary deadlock over valuation or distribution method.
Potential conflicts (e.g., you are both trustee and beneficiary and a decision affects your share).
Suspected undue influence or capacity issues surrounding late-in-life changes.

Early legal intervention often reduces overall cost and conflict.

Quick-Reference: Trustee Duties After a Grantor's Death (First 90 Days)

At a glance checklist:

Trust & will located; authority confirmed
Death certificates ordered; property secured
Insurance notified; utilities stabilized
EIN obtained; trust-only bank account opened
Asset inventory started; date-of-death values requested
Beneficiaries notified; communication cadence set
Creditors identified; claims verified and prioritized
CPA engaged; tax strategy and reserves planned
Interim accounting prepared; documents archived
Distribution plan drafted with prudent reserves

How Our Attorneys Help Trustees Succeed

Administering a trust is a legal and financial project with real deadlines and risks. Our team provides practical, steady guidance: interpreting trust language, coordinating valuations, communicating with beneficiaries, and helping ensure accounting and distributions are done correctly. If questions arise about probate, joint assets, or beneficiary designations, we can explain next steps in plain English and keep the process moving. When a probate proceeding is required for non-trust assets, our overview on what probate is and why families often seek to avoid it is a useful primer.

Contact a Trust Administration Attorney in Your Area

If you've just stepped into the trustee role, you don't have to do it alone. Contact us by either using the online form or calling us directly at 414-253-8500 for legal assistance. Start with a conversation through our secure contact form. We'll help you prioritize the right steps, document decisions, and move from uncertainty to a clear, workable plan.

Frequently Asked Questions (FAQs)

1. What are the first steps a successor trustee should take within 72 hours?

Focus on stabilizing and securing: locate the most recent trust and will, order several certified death certificates, secure real and personal property, preserve digital assets, and maintain insurance and utilities. These early actions align with core trustee duties after a grantor's death and set up the rest of your first 90 days.

2. Do I need a new EIN for the trust after the grantor dies?

Yes. Once the grantor passes, a formerly revocable trust typically becomes irrevocable and needs its own Employer Identification Number (EIN) for banking and tax reporting. Do not continue using the decedent's Social Security number for post-death trust transactions.

3. How soon should beneficiaries be notified, and what are they entitled to see?

Notify beneficiaries promptly that the grantor has died and that you are administering the trust. Beneficiaries are generally entitled to timely, accurate information and to review the relevant portions of the trust that affect their interests. Provide updates at reasonable intervals (for example, at 30, 60, and 90 days) as asset valuations, claims, and tax items develop.

4. Can a trustee make distributions during the first 90 days?

Yes-cautiously. Before any distribution, confirm asset values, identify and vet creditor claims, and set cash reserves for taxes and administrative expenses. Interim distributions may be prudent once those boxes are checked, but document decisions carefully and use receipts/releases.

5. What tax returns are typically required during the first year?

Expect the decedent's final Form 1040 and, if the trust has taxable income post-death, the trust's Form 1041. Estate tax filings may be required if thresholds are met. Preserve date-of-death valuations to substantiate basis adjustments, which can affect beneficiaries' future capital gains.