Legal Question in Wills and Trusts in California
how is a living trust enforced if the successor trustee simply ignores its terms and runs with the money?
3 Answers from Attorneys
A living trust can be enforced by an interested person that files a petition to force a trustee to act or a petition to remove the trustee. Also, trustees can be held personally liable for misappropriating funds, thereby repaying the estate. In short, if a trustee misappropriates funds or fails to act, filing with the court is the proper remedy. You should seek an attorney to discuss this further.
I doubt it is the situation, but if the original trustee decided to be resign but knew the successor trustee was likely to run away with the assets, he/she might have some liability. Was any bond that you can go against put up?
Any beneficiary of a trust can file an action in the probate court to force the trustee to account for all the funds and assets in the trust, and to comply with the terms of the trust or be removed. If you would like to discuss assistance with filing such an action, please contact my office.