Although trustees do not owe each other the same fiduciary duties they owe trust beneficiaries, the duties they owe beneficiaries to safeguard trust assets may obligate them to sue another trustee if that trustee is breaching fiduciary duties owed to the trust beneficiaries, including filing a petition with the probate ...
Whether it's choosing to sell a family home or deciding how much money should be distributed to a beneficiary, both co-trustees have equal authority, and both must be on the same page.
What are the Pitfalls of a Co-Trustee? One of most difficult aspects of co-trustees working together is the requirement of unanimity. A majority rule does not exist for two co-trustees. The management of the trust means there must be agreement on all action taken.
Co-trustees need to agree upon decisions that they make for the trust. It is not enough for one trustee to think that an action is a good idea, with the other trustee disagreeing. Both trustees must decide and agree together in the best interests of the beneficiaries.
If you have an even number of Trustees, decisions can be impossible to make if the Trustees cannot agree. You can inadvertently cause conflict in the family if you appoint siblings or family members as co-Trustees. A professional and non-professional Trustee typically creates confusion and frustration.
If there is more than one trustee, the co-trustees can file a petition to remove one or more of their colleagues. The trust beneficiaries are entitled to challenge the trustee if they believe their inheritance is being misused or improperly disbursed.
Operational liabilities
guarantee. If the charity is not incorporated and cannot meet its obligations, the trustees are personally liable and the members of an association may be liable as the charity does not have its own separate legal personality.
During trust administration in California, a trustee may need to terminate the trust. To do so, adherence to California's probate and trust laws is crucial. Additionally, tax considerations play a vital role in the dissolution process.
Co-trustees may have equal powers, or their powers may be divided in accordance with the trust instrument. Two trustees can be required to obtain the consent of the other trustees before taking certain actions, or you can authorize one co-trustee to act alone.
Yes, a trustee in California can withdraw money from a trust, but only under certain conditions. The authority to withdraw and use trust funds must be in accordance with the terms of the trust document and California law.
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.
Those who are named trustees of certain real property may also commence a partition action. Even though a trustee is not an individual who is enumerated in the partition statutes, if the trustee is also a co-owner of the property, he or she may commence a suit.
The California Probate Code states that if a trust has multiple trustees, each must participate in trust administration. All of the responsibilities cannot be delegated to one co-trustee.
At the point when an attorney or court determines that a Trustee is unable or unwilling to continue serving, it will be necessary for the Successor Trustee to accept their new role as fiduciary.
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.
So, what assets aren't exempt in California bankruptcy cases? Valuable art and collectibles, luxury vehicles, investment accounts that aren't linked to retirement, cash, second homes, high equity homes, and expensive jewelry or valuables are all non-exempt assets that a trustee can legally sell to repay creditors.
In order for the beneficiary to hold the trustee accountable, the beneficiary must have information about what the trustee is required to do and what the trustee actually does. Thus, the trustee has a duty to account and to inform.
In general, the steps to this process are: The trustee must send a written notice to the beneficiary to vacate the real property. Under California law, if the beneficiary has been in possession of the property for less than a year, then a 30-day notice is sufficient.
Beneficiaries have a right to sue the trustee.
That is fairly easy under California law if there is no issue with the identity of the trustee. Next, you must establish a breach of that duty.
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.
The best chance you have to stop a trustee, to prevent that trustee from running away with the rest of the money, or losing the rest of the money is to get a court involved as soon as possible so that a court can put a freeze to those accounts, put a freeze to the trustee's actions, potentially remove the trustee out ...
The Bottom Line. So, can a trustee change a trust? Likely not in any meaningful way. This is mainly due to the fact that most trusts become irrevocable when the trust grantor dies, making it illegal for any changes to be made to the trust.