If the trustor is still alive, the trustees should express the problem to the trustor and ask that the other trustee be removed. If the trustor is deceased or incapacitated, the trustees should convey the problem to the beneficiaries and ask the beneficiaries to join in seeking removal.
At that stage, you're likely paying court fees to initiate a case as well as legal fees to one or more attorneys to argue the case in front of a judge. Depending on how long the case takes to revolve and the size of your legal team, you could easily end up paying thousands of dollars to remove a trustee.
You can disinherit almost anyone and don't have to leave your estate to anyone. Suppose you leave everything in your estate to one person and exclude someone else who might normally be included. In that case, it's your choice, according to the article “Estate Planning: Disinheriting a loved one” from nwi.com.
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. If they've been in possession for more than one year, then a 60-day notice is required.
To remove a beneficiary from the trust, you must first amend the trust deed. To do so, the trustee must execute a deed of variation (also known as a deed of amendment). This document updates the relevant section of the original trust deed and will amend the trust's beneficiaries.
Yes, a trustee can be suspended or removed without consent if they have committed a breach of trust or other misconduct. California Probate Code §15642 identifies the grounds for successfully removing a trustee in probate court.
Steps to Disinheriting Someone in California
Explicitly State Your Intentions: In your will or trust, include a clear and explicit statement indicating your intention to disinherit the specific individual. Simply not mentioning them might not be sufficient, as it could be interpreted as an oversight.
You designate a trustee who will manage the assets for your benefit and the benefit of your chosen beneficiaries. The key distinction is that you retain full control and ownership over the trust and its assets while you are living.
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.
It can take up to a year or longer to remove a trustee from a trust. That said, if there are concerns that a trustee could cause harm to the trust while trustee removal litigation is taking place, then the court may suspend them until it can decide the case.
Amendment Costs: Modifying a trust incurs additional expenses. Amendments cost between $200 and $500 each time, depending on the attorney's rates and the complexity of the changes.
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.
If the person to be removed is alive, then you will need a court order or their cooperation such that you can record a new deed that removes them. Quitclaim and warranty deeds are common solutions. If an owner of a property has passed away, you will need to transfer the property to the living owners.
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.
The trust remains revocable while you are alive; you are free to cancel it, replace it, or make changes as you see fit. Once you die, your living trust becomes irrevocable, which means that your wishes are now set in stone.
Rigidity: Family trusts are often inflexible, making it difficult to alter the terms once they are established. This rigidity can be problematic if family circumstances change, such as in cases of divorce, remarriage or changes in financial status.
You can reduce the likelihood of someone contesting a Will by leaving them a small gift. This may dissuade them from further action once they realize how costly the process is and how unlikely it is they'd win.
A disclaimer is an heir's legal refusal to accept a gift or a bequest. The disclaiming party does not have the authority to direct who inherits their share. If you properly execute a disclaimer, the asset disclaimed will pass to whoever would have received it had you died before the person who left the asset to you.
Removing a trustee from a trust
Interested parties, such as beneficiaries or co-trustees, initiate by filing a petition with the relevant court. They detail reasons for the trustee's removal, and if the court sees merit, it may mandate the trustee's departure. Legal guidance is often recommended in such matters.
In a revocable trust, the grantor (the person who creates and funds the trust) can remove a trustee without permission from anyone else. To do so, they should formally notify the trustee that their services are no longer needed. The grantor can then name a new trustee.
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.
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.