Legal Question in Wills and Trusts in California
Breach of Fiduciary Duty
The Trustee is my late mother (deceased since 2001 in Sacramento, CA), six beneficiaries (brothers and sisters), and two of those beneficiaries were also appointed as co-trustees by the deceased. I am one of the co-trustees. The trustee's asset was divided and allocated to the six beneficiaries by percentage in the form of certificated deposits. For reference purpose I will be co-trustee no.1 and the other will be co-trustee no. 2. Co-trustee no. 1 lives in Sacramento County while co-trustee no. 2 lives in Thurston County in Washington State.
1. Six (6) CD's were withdrawn in the year 2005 in the form of six individual cashier's check totaling close to $315, 000.00. The three cashier's checks were released to the two beneficiaries and one to the co-trustee no. 2 himself. The remaining three cashier's checks with larger amount totaling over $300,000.00 were held by co-trustee no. 2 and deposited them into his personal account.
He bribed me with $15,000 and he used the rest of my inheritance and the 2 sisters� inheritances to invest in real estate back in the year 2005 without my prior approval as a co-trustee. Co-trustee no. 2 never provided us with accounting history. I'm struggling with this economy and cannot afford a lawyer.
1 Answer from Attorneys
Re: Breach of Fiduciary Duty
u Why did you accept a $15,000 bribe instead of getting your portion of the trust which is much greater in value? Your action was also illegal so you might have some problems of yuor own if you report your brother to the police.
Demand of your brother a detailed explanation as to why he stole the money, how much the property he bought is worth, a copy of all the paperwork involved, titles to the property, if the properties are clearly not worth somewhat more than what he stole plus interest evidence of his other assets, his tax returns for last and this year, etc. Give him ten days to fully respond. Do not mention anything to him about being arrested. If he does not respond, call the local District Attorney and find out what they will do and what trouble you are in. You probably will need to speak to an attorney about what you might be charged with.
Since this happened 4 years ago when the real estate market was doing very well, I suspect the real estate is worth much less then when he bought it; he probably also did not declare the money he stole on his income taxes.
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