Special Trust Administration

Special Trust Administration

Most living trusts are administered informally while the settlor is alive and the trust remains revocable. When incapacity or death occurs, however, the trust must transition to a new trustee — and that transition often exposes gaps, conflicts, or complexities that families are not prepared to handle.

With forty years of advising trustees and more than twenty years serving as a trustee, Ken Petrulis brings a rare combination of legal insight, practical experience, and independent judgment to trust administration.

Ken’s background includes serving as a contributing practitioner to the 1990 revision of the California Probate Code and authoring and editing Chapter 6, “Revocable Trusts,” in CEB’s California Estate Planning. This depth of experience allows him to navigate even the most challenging trust situations with clarity and confidence.

While many trusts name family members as successor trustees, doing so often creates avoidable stress, conflict, or administrative risk. Common challenges include:

Special Assets

Performers, artists, writers, and entrepreneurs often leave behind assets that require specialized handling. Some are already under management but still require oversight; others must be consolidated, valued, preserved, or prepared to generate income. An experienced fiduciary ensures these unique assets are protected, professionally managed, and aligned with the settlor’s legacy.

Incapacity

When a settlor becomes incapacitated, the child or relative named as successor trustee suddenly carries a heavy and often unfamiliar burden — typically without compensation and without guidance. Disagreements may arise over finances, living arrangements, or health care. Long periods of incapacity increase the risk of misunderstandings, resentment, or even allegations of financial misconduct. A neutral fiduciary protects the settlor, reduces family tension, and ensures decisions are made in the settlor’s best interest.

Distribution Issues

Even a simple instruction — “divide everything equally” — can become complicated after a parent’s death. Questions arise about fairness, valuation, timing, and the handling of heirlooms or the family home. Family businesses introduce additional layers of complexity. An independent distribution trustee can step in to make sensitive decisions impartially, exercise limited powers when needed, and help families avoid costly litigation.

Special Needs Beneficiaries

Parents of special needs children often hesitate to place full responsibility on siblings. These situations require two distinct skill sets:

• Personal care and advocacy

• Financial management and compliance with public‑benefit rules

Separating these roles usually leads to better outcomes. Two fiduciaries create a natural system of checks and balances, each focused on their area of expertise and each accountable under law.

Real Estate or Business Interests

Corporate trust companies frequently decline to manage income‑producing real estate or closely held business interests due to liability concerns or lack of expertise. A fiduciary with experience in risk management, real estate oversight, and business operations can provide the hands‑on administration these assets require, ensuring continuity and protecting long‑term value.

If you or your clients are seeking a reliable, independent fiduciary who brings both expertise and sound judgment to the role, we welcome the opportunity to be of service.

https://www.petrulisfs.com/

admin@petrulisfs.com