Once the date of death values have been determined for all of the decedent's assets, the next step in settling the Revocable Living Trust is to pay the decedent's final bills and ongoing expenses related to administering the trust. This is also the time that the Successor Trustee will need to evaluate whether trust assets, such as real estate or a business, should be sold in order to raise cash to pay expenses and taxes.
It is the successor Trustee's job to figure out what bills the decedent owed at the time of death, determine if the bills are legitimate, and then pay the bills. The successor Trustee will also be responsible for paying the ongoing expenses of administering the trust, such as legal fees, any accounting fees, utilities, insurance premiums, mortgage payments and homeowner's or condominium association fees.
Once the successor Trustee has paid the decedent's final bills and has the trust expenses under control, the next step is to pay any income taxes and estate taxes that may be due.