Trust Administration in Colorado, Arizona, and California
Trust administration is the work a successor trustee does after the person who made a trust dies. You gather the property, tell the beneficiaries, pay bills and taxes, and hand out what’s left, usually outside court. Colorado and Arizona both require notice to beneficiaries within 60 days. Attorney Daniel R. Klein guides trustees step by step.
In Colorado
You must notify beneficiaries within 60 days after you accept the job, and within 60 days after the trust becomes irrevocable, meaning it can no longer be changed (C.R.S. 15-5-813).
In Arizona
The same 60-day notices apply.
- Reviewed by
- Daniel R. Klein, attorney
- Last reviewed
This page is general information about Colorado and Arizona law as of . It is not legal advice.
Who is this for?
- You’ve been named successor trustee of a parent’s or spouse’s trust.
- You’re a beneficiary and want to understand what the trustee must do.
- You’re already serving as trustee and feel unsure about a step.
- The trust owns property in more than one state.
What does a successor trustee do?
A successor trustee is the person who takes over a trust when the person who made it, the grantor, dies or can’t manage. As trustee, you are a fiduciary, someone the law requires to act for others, not for yourself.
The trust document is your instruction book. The law adds core duties: act in good faith, put the beneficiaries first, treat them fairly, invest carefully, keep costs reasonable, and keep good records (C.R.S. 15-5-801 to -810; A.R.S. 14-10801 to 14-10805).
What are the main tasks?
- Find the trust and any changes to it, and read them closely.
- Secure the home, cars, and other property.
- Tell the beneficiaries about the trust within the deadline.
- Get a tax ID number for the trust.
- Make a list of trust property, and get values or appraisals.
- Pay valid debts and final income taxes.
- File a federal estate tax return (Form 706) if one is needed. It’s required for large estates. If the person was married, filing one can also save the unused exclusion for the surviving spouse, called portability. It’s due 9 months after death, with a 6-month extension available (IRS).
- Keep records, and give beneficiaries an accounting, a report of money in and out.
- Hand out what’s left, following the trust’s terms.
How do we help trustees?
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First meeting
Daniel R. Klein reviews the trust with you and explains your duties in terms you can understand. You leave with a duty checklist.
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Notices
We prepare the notices the law requires you to send to beneficiaries.
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Transfers
We help you retitle accounts and record deeds for any real estate.
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Taxes
We work with your CPA on the final returns, and on an estate tax return if one is due.
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Accounting and distribution
We help you prepare clear records and hand out the property. Careful steps lower the risk of disputes and of personal liability for you.
Are a trustee’s duties different in Arizona?
The duties are nearly the same. The biggest difference is how long beneficiaries have to challenge the trust.
Taxes in both states. Neither state has an estate or inheritance tax (Colorado Legislative Council; Arizona Department of Revenue). The federal estate tax exclusion is $15,000,000 per person for 2026 deaths (IRS Rev. Proc. 2025-32).
In Colorado
You must notify beneficiaries within 60 days after you accept the job, and within 60 days after the trust becomes irrevocable, meaning it can no longer be changed (C.R.S. 15-5-813). A beneficiary can contest the trust only until the earlier of 3 years after the death or 120 days after your notice (C.R.S. 15-5-604).
In Arizona
The same 60-day notices apply. You must also give 30 days’ notice before changing your pay (A.R.S. 14-10813). The time to contest is shorter: the earlier of 1 year after the death or 4 months after your notice (A.R.S. 14-10604).
What should I bring?
- The trust and any amendments.
- A copy of the death certificate.
- A list of accounts and property the trust may own, by type. No balances are needed.
- Recent tax returns of the person who died, if you have them.
- Names and addresses of the beneficiaries.
You can also print our what to bring checklist.
Please don’t email private documents, like account statements or medical records. We’ll tell you how to share them safely.
What does it cost?
You’ll get a written quote before any work begins. See how our fees work.
Questions people ask
I’m the trustee. What do I have to do first?
Take a breath. Then find and read the trust, secure property like the home, and start a list of what the trust owns. In both Colorado and Arizona, you must notify the beneficiaries within 60 days after you accept the job as trustee, or after the trust can no longer be changed (C.R.S. 15-5-813; A.R.S. 14-10813). A short meeting with a lawyer early on can prevent missteps.
Can a trustee be paid?
Yes. In Colorado, fiduciaries, including trustees, are entitled to reasonable pay (C.R.S. 15-10-602). In Arizona, the trust usually says how the trustee is paid, and a trustee must give beneficiaries 30 days’ notice before changing their pay (A.R.S. 14-10813). In either state, the trust itself may set the pay.
How long does trust administration take?
There’s no single answer. It depends on the property, the taxes, and whether the beneficiaries agree. Selling a home or filing a federal estate tax return adds time. We’ll give you a realistic estimate once we’ve seen the trust and the property.
Do I have to go to court?
Usually not. Most trusts are settled without a court case. A court may get involved if beneficiaries disagree, if the trust is unclear, or if some property was left outside the trust and needs probate.
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