Legal Question in Wills and Trusts in California

Is beneficary required to sign a release?

I am one of several beneficiaries for a number of properties in a Trust that has been going on for a seemingly interminable 7.5 years. Both of the Trustees are also beneficiaries. One is one of the three people designated to inherit the same property as me.The Trust is coming to a close there has been a fair amount of relatively small self-dealing and conflict of interest.

The first offer 12/98 indicated a $20,000 surplus. The second offered yesterday indicates a 20,000 shortfall/deficit. Both offers required us to pay in approx. $25,000 to cover supposed improvements and existing mortgages.

We did not accept the first offer because 1.) our discovery that the Trust has not paid back property taxes of our property = about $25,000 which we understood that we would then owe); and 2.) the intervention of the one co-trustees/beneficiary who wanted us to buy his property interest at a higher than market rate.

We feel it best to settle with Trust and then review their actions to evaluate whether any legal action should be taken.

However, we have been told that we have to sign a release in order to get our "inheritance". This does not seem right to me - is it the law?


Asked on 7/12/99, 5:28 pm

1 Answer from Attorneys
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Is beneficary required to sign a release?

It may not be the law, but it's common practice because the Trustees have to know whether to keep money in the trust to pay for future claims, legal questions, etc.

If you want to keep your legal options open, you may want to review this with an attorney first to see whether you're giving up rights you don't want to give up when you sign the release.

The attorney can also give you a better idea of whether you have any possible claims against the trust or Trustee. If so, and you wish to pursue these, you may have more negotiating power before signing a release.

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Answered on 7/15/99, 5:38 pm


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