If a trustee breaches these or any other of the duties imposed by the trust, common law, or the California Probate Code, the beneficiaries may have grounds to remove the trustee. A trustee may breach those duties through: Colluding with one or some beneficiaries to the detriment of others.
When the trust owner dies, the trustee can transfer property out of the trust by using a quitclaim or grant deed transferring ownership of the property to the beneficiary.
Executors are bound to the terms of the will, which means they are not permitted to change beneficiaries. The beneficiaries who were named by the decedent will remain beneficiaries so long as the portions of the will in which they appear are not invalidated through a successful will contest.
Yes, a trustee can override a beneficiary if the beneficiary requests something that is not permitted under the law or by the terms of the trust. Under California Probate Code §16000, trustees must administer the trust according to the terms of the trust instrument.
If you've created a trust, this might mean filling out a trust amendment form. A trust amendment form is one of a few ways you can update your trust document. This form allows you to make specific changes that won't affect your trust as a whole, such as adding a beneficiary or editing a certain provision.
Generally speaking, once a trust becomes irrevocable, the trustee is entirely in control of the trust assets and the donor has no further rights to the assets and may not be a beneficiary or serve as a trustee.
While beneficiaries can often disagree with an executor's decisions, unless the executor clearly violates the terms of the will or breaches their fiduciary duty, there is typically nothing a beneficiary can do about it.
Typically, a revocable trust with clear provisions for outright distribution might conclude within 12 to 18 months. However, in simpler cases, the process can take an average of 4 to 5 months without complications.
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.
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.
The moment the grantor dies, the revocable living trust automatically converts to an irrevocable trust which means no further changes can be made. While a trust can remain open for 21 years after the death of the grantor, most are closed immediately after death.
As previously mentioned, trustees generally cannot withhold money from a beneficiary for no reason or indefinitely. Similarly, trustees cannot withdraw money from a trust to benefit themselves, even if the trustee is also a beneficiary.
The legal authority to modify revocable beneficiaries typically rests with the grantor or settlor of the trust. The grantor can add or remove beneficiaries, change the distribution percentages, or modify any other provisions related to the beneficiaries.
A trustee cannot refuse to give a beneficiary money under just any circumstances—if they do not have authority or a reason to do so, it could be grounds for a legal contest.
Estate beneficiaries who do bring an action against another beneficiary, heir, personal representative or third party can seek to have the alleged offender pay for the property or return it, and potentially seek punitive damages if the harm to property was substantial.
The grantor can set up the trust so the money is distributed directly to the beneficiaries free and clear of limitations. The trustee can transfer real estate to the beneficiary by having a new deed written up or selling the property and giving them the money, writing them a check or giving them cash.
Usually, revocable trusts with clear distribution terms should be settled and distributed within 12-18 months following the death of its creator (settlor).
Selecting the wrong trustee is easily the biggest blunder parents can make when setting up a trust fund. As estate planning attorneys, we've seen first-hand how this critical error undermines so many parents' good intentions.
An executor can override the wishes of these beneficiaries due to their legal duty. However, the beneficiary of a Will is very different than an individual named in a beneficiary designation of an asset held by a financial company.
An executor may overrule beneficiary wishes if it is necessary to comply with a will's terms or a court order, though they cannot unilaterally reduce inheritance payments or alter will terms without following legal and ethical boundaries set out by both state law and the will itself.
Trustee: Trustees often have more ongoing authority, especially in the case of living trusts or long-term trusts. They may manage and distribute assets over many years, depending on the terms of the trust.
When it comes time for the insurance company to pay death benefits, it doesn't matter what your will says, what your spouse says, or what your trustee says. It doesn't matter because the beneficiary designation on a life insurance policy, IRA or 401(k) account trumps them all.
WHO IS THE “RIGHT” TRUSTEE? A natural first inclination is to consider a family member or trusted friend who knows you and your philosophies and values well. Family or friends may personally know your beneficiaries and their needs.
Being a trustee is also a role that can be quite time consuming, more so than most people assume. Depending on the nature of the estate, being a trustee can require quite a few hours, which can be hard to come by if the trustee also has a full-time job, a family, and/or other obligations.