Legal Question in Wills and Trusts in California
A professional trust company, as successor trustee of a living trust, failed to distribute trust assets to me as the beneficiary after death of the trustor, and instead distributed the funds to charity, on the assumption that I had died. After figuring this out about six months ago and fighting it out with the trust company, now, two years after they paid the money to charity, the trust company has recovered the funds from the charity and greed to pay them to me. I've come across Section 16441 of the Probate Code, indicating that the trustee may be liable for interest that accrues at the legal rate on judgments, which I believe is 10% under a breach of trust. Should I be able to prevail if I go to court over this interest issue, and can I recover my attorney's fees? The trust company only wants to pay me interest at a money market rate, which is next to nothing. They had my address on file and had sent me correspondence at various points before they closed out the trust, yet when it came time to pay out, they screwed the whole thing up in a very incompetent way. This is a big trust company and they have not offered any excuse other than that they made an administrative error. Do I have a case?
1 Answer from Attorneys
I think you need to consult with a trust litigation attorney right away. I can tell you from experience that a number of professional trust companies, large banks, financial institutions, etc. are horribly sloppy at dealing with trusts correctly. If the facts are as you say they are, you would have a breach of fiduciary duty and breach of trust claim, and possibly conversion. If you were to succeed, you would be able to seek pre-judgment and post-judgment interest at the highest statutory rate possible (in several cases, 10%), as well as seek attorneys' fees, if the trust instrument is silent on this point. Generally, beneficiaries that bring succesful claims against trustees can request their attorneys' fees to be paid out of the body of the trust.
There are many good probate/trust litigation attorneys on this site and others. If I and my firm can be of assistance, please let me know. I have previously litigated trust claims involving up to $14 million in dispute. Thanks and best regards, Rabeh
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