Legal Question in Wills and Trusts in California

in California, can a trustee create a lien against a trust (real estate) without permission or notice to the beneficiary? Is the beneficiary then liable for any liens?


Asked on 11/02/10, 9:09 am

2 Answers from Attorneys

George Shers Law Offices of Georges H. Shers

The Trustee is to act in a conservative fashion in the best interests of the Trust. That might in some limited circumstances result in a lien against the trust property/Trust. There would be no legal need to get the approval of the beneficiary as the beneficiary has no power as to decisions. Reasonable management of the trust would involve telling the beneficiaries of significant future acts, but there is no compensable injury suffered by you if you do not get such information. The trust is liable for the lien, but as a practical matter the lien reduces the assets of the trust which reduces the amount the beneficaries get.

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Answered on 11/07/10, 10:01 am
Anthony Roach Law Office of Anthony A. Roach

It depends on what powers were given to the trustee in the trust instrument. The trustee cannot exercise powers he or she was not given by the trustor.

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Answered on 11/07/10, 10:54 am


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