Calendaring the 4Month Creditor Period

I had a client, Emily, discover just last week that a codicil she signed six months ago—amending her trust to remove a beneficiary—was never filed. She’d meticulously planned everything, assuming the attorney had handled it. Now, a claim is coming in from the disinherited child, and Emily faces a costly and public court battle, all because of a misplaced document. It’s a sobering reminder that even with careful planning, things can fall through the cracks.

As an estate planning attorney and CPA with over 35 years of experience, I’ve seen this scenario play out far too often. Clients, understandably, assume that once they sign a document, it’s automatically effective. That’s simply not true. Especially when it comes to trusts, and especially when dealing with amendments like codicils.

The biggest mistake I see isn’t the planning itself, but the failure to properly confirm implementation. That confirmation often centers around the four-month creditor period, specifically the deadline for filing the ‘Inventory and Appraisal’ with the court. This is triggered by the date Letters Testamentary (for a Will) or Letters of Administration (for a trust) are issued.

What exactly is the 4-Month Creditor Period?

After you’re officially appointed as executor or trustee, you have four months – not a day more – to file the ‘Inventory and Appraisal’ with the court. This document lists all of the estate’s assets and their estimated values. Think of it as a snapshot in time. Probate Code § 8800 specifically mandates this deadline. Missing it isn’t just a technicality; it’s a red flag to potential creditors, and more importantly, to the court.

Why is the Inventory so critical for amending a Trust?

The inventory serves a critical function in establishing the trust’s assets as of the date the trustee took control. If Emily’s codicil had been filed properly, it would have been reflected on a subsequent inventory, demonstrating the change in beneficiaries. Because it wasn’t, the claim is proceeding as if the old trust terms were still in effect. Filing a late or missing inventory effectively throws the door open for challenges to the trust’s validity, especially when dealing with disgruntled heirs.

How do I avoid a similar disaster?

• Confirm Filing: Don’t just assume. Call the court clerk and verify that the codicil has been filed and is officially part of the record. Get the file stamped copy.
• Calendar the Deadline: The four-month deadline for the inventory is non-negotiable. Put it on your calendar – and set multiple reminders. I recommend using a legal calendaring system that integrates with the court’s system.
• Engage a CPA: This is where my dual background is invaluable. Properly valuing the assets for the inventory requires a deep understanding of tax implications, like the step-up in basis. An inaccurate inventory can lead to capital gains taxes down the line.

What if I miss the 4-Month Deadline?

Missing the deadline is serious, and often triggers an Order to Show Cause (OSC) hearing, requiring you to explain the delay to the judge. The court can impose sanctions, and in extreme cases, even consider removing you as executor or trustee. I’ve represented numerous clients facing these hearings. A clear explanation, a good-faith effort to correct the error, and professional representation are crucial.

What about changes to my address or contact information?

It sounds simple, but this is a common pitfall. California Rule of Court 2.200 requires you to immediately file a Notice of Change of Address (Form MC-040) with the court if your contact information changes. The court relies on mail for critical notices, and a missed notice due to an old address can lead to serious consequences, including a bench warrant or removal. Always keep the court informed of your current address and phone number.

What determines whether a California probate estate closes smoothly or turns into litigation?

California probate is designed to provide court-supervised transfer of property, yet cases often break down when authority is unclear, required steps are missed, or disputes arise over assets, notice, and fiduciary conduct. When the process is misunderstood, families can face avoidable delay, escalating conflict, and increased exposure to creditor issues, hearings, or litigation before the estate can close.

California probate is most manageable when authority is documented early, assets are classified correctly, and procedure is followed consistently from petition through closing. When the process is approached with realistic expectations about notice, claims, accounting, and dispute risk, the estate is more likely to move toward closure without avoidable conflict or delay.

Verified Authority on Probate Case Management

• Mandatory Closing Timeline: California Probate Code § 12200 (Time for Closing)
  The clock starts ticking the day Letters are issued. You have 12 months to close the estate (or 18 months if filing a federal tax return). If you miss this deadline, you must file a Status Report of Administration to explain the delay to the judge, or face potential sanctions.
• Notice of Proposed Action (NOPA): California Probate Code § 10580 (IAEA Powers)
  This is the executor’s most powerful case management tool. It allows you to sell cars, abandon worthless property, or compromise claims without a court hearing, provided you give beneficiaries 15 days’ notice and receive no written objections.
• Inventory & Appraisal: California Probate Code § 8800 (Filing Deadline)
  Effective case management relies on knowing what you have. The law requires the Inventory and Appraisal to be filed within 4 months of appointment. This document lists every asset and its value as of the date of death, serving as the baseline for all accounting.
• Duty to Deposit Money: California Probate Code § 9700 (Estate Funds)
  The Personal Representative has a strict fiduciary duty to keep estate cash safe. Funds must be deposited in insured accounts (banks or trust companies authorized in California). Keeping cash in a personal safe or a non-interest-bearing checking account for too long can result in a surcharge.
• Change of Address: California Rules of Court 2.200
  A simple but critical management task. If the administrator, executor, or attorney changes their mailing address or email, they must file a Notice of Change of Address (Form MC-040) immediately. The court sends hearing notices by mail; “I didn’t get the letter” is not a valid defense in probate court.
• Duties & Liabilities Form: Judicial Council Form DE-147
  Before Letters are issued, every personal representative must sign this form acknowledging they understand their duties. It serves as a permanent record that you were warned about commingling funds, tax deadlines, and the requirement to keep accurate records.