How does a referee handle a timeout called after a dead ball foul?

When a timeout is called after a dead ball foul, the referee has a responsibility to ensure that both teams are aware of the circumstances surrounding that timeout. This communication helps maintain the integrity and flow of the game. By notifying both teams, the referee ensures they are all on the same page regarding the status of the play and any ensuing penalties that may need to be addressed.

In the context of managing the game, notifying both teams is essential for keeping everyone informed about the situation, which can affect strategies and decisions moving forward. The other options do not properly address the requirement for communication between the officials and the teams regarding the timeout's implications. Ignoring the timeout could lead to confusion about the game situation. Assessing the penalty first might disrupt the timing and understanding of the game's flow. Resetting the clock immediately without considering the timeout would also misrepresent the game’s status to the teams on the field.

Therefore, the appropriate action in this situation is to ensure that both teams are notified about the timeout called after a dead ball foul.