Both executors and trustees have legal obligations, but they have different duties in the process of distributing the assets of an estate. An executor is responsible for settling a will, while a trustee is responsible for managing and distributing assets in a trust.
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.
As a trustee, you're tasked with safeguarding and managing the trust property for the benefit of the trust's beneficiaries according to the terms of the trust document. This involves duties like investing assets wisely, distributing trust assets to beneficiaries as the trust document dictates, and keeping records.
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.
When the trustee has discretionary authority, they can be within their rights to refuse to pay a beneficiary. There are situations when the trustee does not have grounds to refuse to pay a beneficiary. If a mandatory provision promises trust funds to a beneficiary then the trustee must comply.
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.
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.
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.
A trustee is a person or entity responsible for and with the authority for managing and administering your trust according to your instructions and in accordance with state law. They are considered a fiduciary (meaning they are held to a higher standard of care and owe certain duties to the beneficiaries).
The trustees have complete control over the assets and the income they generate, deciding how and when to give them to the beneficiaries. ` People may set up this kind of trust for their grandchildren, making the grandchildren's parents trustees.
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.
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. And it may be the only option you have for ensuring you receive your rightful inheritance from a deceased loved one's trust.
While a POA agent can make decisions on the principal's finances and health care, their role essentially dies with the death of the principal. A trustee, however, is responsible for the assets held within a trust and their administration following the trustor's death or guidelines of the trust document.
A common misunderstanding is that the trust owns the property within it. This is not really true. The trustee of the trust holds legal title to the trust property. The trust beneficiaries hold beneficial title to the trust property.
If the trustee is not paying beneficiaries accurately or on time, legal action can be taken against them.
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.
Anyone 16 and over (18 for an Unincorporated Association or Charitable Trust) who is not 'disqualified' can be a Trustee. The reasons for disqualification were set down by the Charities Act 2011, and were designed to prevent people convicted of financial crimes, or who made serious financial errors, becoming trustees.
Serving as an executor or trustee is a significant responsibility that requires careful consideration. While there are benefits, such as personal satisfaction and potential compensation, there are also drawbacks, including time commitment, emotional strain, and potential legal liability.
No, a trustee does not have the authority to change the terms of a will. A will is a legal document that becomes irrevocable upon the death of the individual who created it. However, in certain situations, a will can be contested in court.
All trustees have the power to manage trust assets. This may include the sale and purchase of trust property and making investments. The trustee must decide whether to use its power to manage assets on a case-by-case basis and must only consider relevant factors when deciding to exercise any power.
The California probate code outlines the responsibilities of trustees in managing and fairly distributing assets to beneficiaries. Typically, a revocable trust with clear provisions for outright distribution might conclude within 12 to 18 months.
In this case, the trustee can and must sue the offending beneficiary. The rules for any trustee to sue include showing a proper cause of action, such as a tort, contract, or quasi-contract claim, and showing the resulting damages.