Under California Probate Law, a trustee generally has the authority to sell trust assets without obtaining approval from all beneficiaries. More importantly, it is recommended that trustees seek consensus and secure written agreements. This will help alleviate disputes or legal challenges.
Trustees hold legal powers such as managing assets, making investment decisions, distributing funds to beneficiaries, and ensuring compliance with trust terms and laws.
In some cases, the executor can sell the house without getting the sign-off from all the heirs. For example, in California, if the executor can sell the property for at least 90 percent of its appraised value, they may have the authority to move forward with the sale.
A trustee must abide by the trust document and the California Probate Code. They are prohibited from using trust assets for personal gain and must act in the best interest of the beneficiaries. Trust assets are meant for the benefit of the trust beneficiaries and not for the personal use of the trustee.
Ultimately, trustees can only withdraw money from a trust account for specific expenses within certain limitations. Their duties require them to comply with the grantor's wishes. If they breach their fiduciary duties, they will be removed as the trustee and face a surcharge for compensatory damages.
Trustees are personally liable for all decisions they take in that capacity, and their liability is not automatically limited to the value of the trust fund. Typically, the trust deed will limit trustees' liability in some way and these clauses should be checked, as well as any existing trustee insurance.
In California, a co-owner of an inherited property can force a sale of that property by taking legal action against siblings with a lawsuit called a partition action, a legal proceeding that can result in the court ordering the sale of the property and the division of the profits among siblings.
How Long Does An Executor Have To Sell Property In California? In the Golden State, there's no hard and fast deadline for an executor to sell a property. However, they do need to keep things moving along with the estate's timely administration.
Certain scenarios might prompt an executor to initiate legal action against a beneficiary. Valid reasons for such action include breach of terms outlined in the will or unlawful interference in the execution process. Legal disputes could result in consequences for the involved beneficiaries.
The answer is a resounding yes. The ability to seek removal and replacement of a trustee is one of your most important rights as a trust beneficiary.
The answer to who holds more power depends largely on the context and specific circumstances of the estate or trust. Here's a summary to help clarify: Duration of Authority: Trustees often have ongoing responsibilities and powers that can extend indefinitely, while executors have a more limited, temporary role.
Depending on the complexity of the case, it may cost anywhere from a few thousand dollars to $100,000 or more to dispute the terms of a trust.
While trustees may temporarily be able to delay trust distributions if a valid reason exists for them doing so, they are rarely entitled to hold trust assets indefinitely or refuse beneficiaries the gifts they were left through the trust.
If the executor sells estate properties without obtaining unanimous approval from beneficiaries, it would be against a California probate's fundamental principle. This strict rule is because the executor has to perform their duties according to the decedent's will.
An irrevocable trust provides greater protection against creditors, protects you from estate taxes and removes assets from income consideration for Medicaid-funded long-term care. However, a trustee cannot sell a trust property without all beneficiaries approving.
If the property needs to go through the probate court process, the house can stay in a decedent's name until the probate process has been completed and ownership of the property has been transferred.
Can An Executor Sell Property Below Market Value? Yes. Selling a property below market value can be justifiable in certain situations, including: Urgency: If there is an urgent need for liquidity or the property requires immediate disposition, selling below market value might be an acceptable option.
Personal possessions should not be distributed before probate is completed, as they are part of the estate that must be inventoried and appraised. Distributing items prematurely could lead to legal disputes, especially if they are intended for specific beneficiaries.
In California, real property is one of the most valuable assets you can inherit from a loved one. But inheriting real estate that has increased in value over time can trigger capital gains tax consequences when you sell that piece of property.
Co-Owner's Right to Access the Property
A fundamental rule of co-ownership in California is that: “One of the essential unities of a joint tenancy is that of possession. Each tenant owns an equal interest in all of the fee, and each has an equal right to possession of the whole. Possession by one is possession by all.
However, under California law, if the siblings can't agree and any of the siblings want to sell the house they inherited, they can use a legal proceeding known as a “partition action” to force the sale.
Serving as the trustee of a trust instills a person with significant power. They have access to all the trust assets, but with a catch: They can only use those assets to carry out the instructions of the trust.
A trustee typically has the most control in running their trust. They are granted authority by their grantor to oversee and distribute assets according to terms set out in their trust document, while beneficiaries merely reap its benefits without overseeing its operations themselves.
Under California law, embezzling trust funds or property valued at $950 or less is a misdemeanor offense and is punishable by up to 6 months in county jail. If a trustee embezzles more than $950 from the trust, they can be charged with felony embezzlement, which carries a sentence of up to 3 years in jail.