In all cases, the trustee must take steps to insure that all assets of the trust are titled in the name of the trust (for example, "John Smith, as trustee of the John Smith 1994 Trust, initially created on August 8, 1994").
If the trust is irrevocable, the trustee must obtain a taxpayer ID number for the trust, and must file annual income tax returns for the trust (normally, revocable trusts need not file tax returns, and all income of a revocable trust is taxed to the grantor or settlor). If there is no probate estate, the trustee may also be required to prepare and file the "estate tax return" and pay any estate taxes owed.
The trustee must generally also keep careful records and provide periodic "accounting" reports to the beneficiaries. If the trust is subject to court supervision (which is rare in California), annual accountings must be filed with (and approved by) the probate court.
Finally, at the appropriate time, the trustee must arrange for distributions from the trust, according to its term, and eventually the trust must be terminated.
The specific duties of the trustee are described in the trust document, and in the California probate code. The trustee should consult regularly with an attorney familiar with trust administration, and with an accounting professional.
Mark J. Welch is an attorney who limits his practice to trust administration, probate, and estate planning matters. Mr. Welch has offices in Pleasanton, San Ramon, Newark, Walnut Creek, Oakland, San Francisco, and ten other Bay Area cities.