You may be surprised to learn that there are a number of ways that a bad Trustee can escape liability in Court. For starters, if the Trustee disclosed a questionable transaction in writing to you, you only have three years in which to file a lawsuit. But that’s just the start.
Consent, release, and
“If you got it, flaunt it baby!” That’s one of my favorite lines from the movie The Producers by Mel Brooks. The same can be said of California Trustees (although not referring to their looks of course). For Trustees, if you have a special skill you are expected to use them.
For example, if you
Acrimony between Co-Trustees can raise significant problems. Co-Trustees each have a duty to participate in the administration of the Trust (PC 16013). A Co-Trustee also has a duty to prevent the other Co-Trustee from committing a breach of Trust, and compel a Co-Trustee to repay damages caused by a breach of Trust. That can be
Funny thing about Trustees, they are expected to seek help, just not too much help. Generally, Trustees are not allowed to delegate their duties (see Probate Code section 16012). The rules state that anything the Trustee can “reasonably” be required to personally perform cannot be delegated. And the Trustee can never delegate the entire
As Trustee, you have a duty to defend the Trust in actions and lawsuits filed against it. This duty is the flip side of a Trustee’s duty to enforce claims, where a Trustee must sue to enforce a debt owed to the Trust.
The duty to defend requires the Trustee to take all reasonable
You have no duty to sue, it’s true. If someone owes you money and you don’t want to go to the trouble of collecting it, or suing for it, you have the right to just let it go by the wayside. It ‘s your money and you have the right to give it away.
Quick piece of advice: if you do not like bookkeeping, don’t be a Trustee. It takes a good deal of time and effort for a Trustee to properly keep Trust assets, separate, and identified. Not only that, but every expense you have, every bill you pay, must be documented with a receipt.
Why all
Trust property must be productive. But what does that mean exactly? Well if you have rental real property in a Trust, it needs to be rented. If you have cash in a bank account, it needs to be invested. If you have a car that no one drives, it needs to be sold. And
One of the most important financial duties of a Trustee is to take control of all Trust assets and act to preserve those assets from loss. This can mean different things in different situations. For example, if you take over a Trust with a volatile stock portfolio, you may have a duty to sell
When faced with a Probate Court Petition that you do not agree with, you must object. Luckily, in California you have some leeway on when you can object because our Probate Code allows interested parties to object orally at the initial hearing. In other words, you technically do not have to have a written