My parent just died and named me as successor trustee. What do I do first?

Your first tasks are hands-on, not legal:

• Find the original trust document. You need the full, signed copy, not a photocopy. If your parent worked with an estate planning firm, they may have a copy on file. Look for it next to other estate planning papers such as powers of attorney and health care directives.
• Order copies of the death certificate. Ask for at least 10 to 15 certified copies from the county or funeral home. Banks, title companies, and insurance carriers will each need their own copy. Having enough copies of the death certificate stops delays later.
• Secure the property. If your parent lived alone, make sure the home is locked, mail is picked up, and any urgent concerns are handled.
• Tell close family members. Let family members know what is going on. Even if they are not named in the trust, keeping people in the loop cuts down on confusion and tension.

Once you have the trust papers and death certificates, shift to notices and info gathering:

• Tell all trust beneficiaries (the people named to receive assets) in writing. Under A.R.S. 14-10813, you must keep qualified trust beneficiaries informed about how the trust is being run. Send a written notice that the trust exists, that you are serving as successor trustee, and that they can ask for a copy of the trust terms.
• Apply for a new EIN. Once your parent has passed, the trust is no longer revocable. It needs its own tax ID number (called an EIN) from the IRS. You can apply online. It takes just minutes.
• Open a trust bank account. Use the new EIN to open a bank account in the name of the trust. All income and costs should flow through this account going forward.
• Gather records on all trust assets. Make a list of every asset in the trust. This includes real estate, bank accounts, investment accounts, cars, and personal items of value.

This phase is about getting the full picture:

• Get date-of-death values for key assets. You may need formal appraisals for real estate and other big-ticket items. These values matter for tax reasons and for splitting assets fairly.
• Pay ongoing bills. Keep up with mortgage payments, insurance, utilities, and property taxes. Letting bills lapse can hurt the trust or the assets it holds.
• File your parent's final income tax return. This covers income from January 1 through the date of death. A CPA or tax pro can help with this.
• Review life insurance policies. Life insurance payouts go to the named person on the policy. If the trust is the named person, put those funds into the trust account.

Do not rush to split things up. Before you hand out anything, make sure:

• All debts and bills are paid or set aside
• Tax returns are filed or in process
• You have a clear picture of what the trust holds
• You have followed the trust terms on how and when to give out assets

Giving out assets too soon can put you at personal risk. If a bill or tax issue comes up later, you may have to cover it out of your own pocket. Take your time and do it right.

You do not have to do this alone. A trust settlement team can guide you through each step. They handle the legal and tax details while you focus on your family. That is the smart play.