Legal Question in Wills and Trusts in California

Family Trust

A trust was planned in 2001 designating me (the son) as the primary executor. It is designated that upon the death of both Settolor's that the property is to be equally distributed among all beneficiaries (children). However, there no special instructions on how or when that is to be done (it is not specified that it must be done immediatley upon death). Now that both Settlor's are deceased I was wondering if it is possible to maintain the property until the market economy goes back up. In other words am I legally able to rent the property until it is ready for sale if the proceeds of the rental are used to pay off remaining debts of the Settlor's (not incurred by them but incurred in their name)? Even upon the opposition of the other benificiaries (children)?


Asked on 11/01/07, 2:30 pm

2 Answers from Attorneys
Jeb Burton The Burton Law Firm

Re: Family Trust

If their is no time limit on when the trust needs to be ditributed by, then you are held to a reasonableness standard. Meaning what is a reasonable time limit to distribute the trust assets.

What you are describing sounds a little bit suspect. While it is probably reasonable to wait to fix the property and "get it ready for sale", or to wait until Spring when the market is better, it is probably not reasonable to hold onto the property for a period of years just because the property market is currently depressed.

If you have beneficiaries complaining about your actions, or are planning on doing something out of the ordinary (as you described), I would strongly encourage you to retain an attorney to help you administer the trust. Especially considering that the wrong action could make you personally liable (depending on the trust).

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Answered on 11/01/07, 2:50 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: Family Trust

You have to look at the terms of the trust document. These issues are usually addressed. You should hire an attorney to advise you and assist you when necessary. This can keep you from making a serious blunder and help keep the peace in the family since an attorney can give an opinion on the appropriateness of your actions, cite the laws and cases which support that position, and generally help keep the peace. The cost of the attorney is paid from the trust estate as a legitimate expense, just as it would be appropriate to hire from the trust assets a CPA to prepare the final tax returns for the decedents and annual returns for the trust.

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Answered on 11/01/07, 11:03 pm


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