Legal Question in Wills and Trusts in California

Depends on how much is in there. If it is under 2.5 million you don't pay estate taxes IF the trustee dies this year.

If you are the successor "trustee" of the trust, you hold the money in the bank for the benefit of the beneficiaries. You may NOT just take the money. As the successor trustee, you are obligated to administer the trust, give notice to the beneficiaries, account to the beneficiaries, keep them advised of trust activities, pay all bills and expenses, and then when the administration of the trust is completed, then, and only then, will you distribute to the beneficiaries.

If you are a beneficiary, then the successor trustee must administer the trust and you will get your beneficial interest after administration.

Estate tax depends on the gross estate. In 2012, the equivalent amount exempt from estate tax is $5,000,000.

Generally, the recipient of a gift does not pay a tax on the gift.