Legal Question in Wills and Trusts in California

Is this correct: If there are no specific provisions in the trust documents for a successor trustee to terminate a trust in California, the successor trustee needs the agreement of all beneficiaries who have not been paid their inheritance from the trust. In other words, the successor trustee cannot dissolve the trust without consent from the unpaid beneficiaries.

Am I right that this is addressed in Calif Probate Code 15403?

15403 (a) Except as provided in subdivision (b), if all beneficiaries of an irrevocable trust consent, they may compel modification or termination of the trust upon petition to the court.

(b) If the continuance of the trust is necessary to carry out a material purpose of the trust, the trust cannot be modified or terminated unless the court, in its discretion, determines that the reason for doing so under the circumstances outweighs the interest in accomplishing a material purpose of the trust. Under this section the court does not have discretion to permit termination of a trust that is subject to a valid restraint on transfer of the beneficiary's interest as provided in Chapter 2 (commencing with Section 15300).


Asked on 4/03/13, 2:09 pm

1 Answer from Attorneys
Victor Waid Law Office of Victor Waid

You are seeking a legal opinion, based upon a statute, without the writer's benefit of seeing all of the trust documents. You are strongly advised to seek the assistance of an estate planning attorney, and be prepared to pay for a written opinion, as what I believe you are seeking to accomplish, will have long term effects on several persons as setforth in the trust; an ounce of prevention is worth a pound of cure.

Read more
Answered on 4/03/13, 2:22 pm


Related Questions & Answers

More Probate, Trusts, Wills & Estates questions and answers in California