Legal Question in Wills and Trusts in California
Removal as Trustee
I am being asked to resign my position as Trustee by an attorney of one of the beneficiaries of the trust. The reasons given are; That I have not sent an accounting to the beneficiaries (As I was unaware this was necessary) and that I loaned funds from the trust out at a 4% interest rate which the beneficiaries attorney states is too low an interest rate (The loan was in June 2008). There have been no losses incurred in the time I have been administering this trust, only gains anywhere from 2% to 4.5% monthly. The beneficiaries attorney also want me to pay his fees personally. My question being, should I retain counsel and if I did retain counsel does the trust pay the fees? Also, I really don't have a problem resigning as trustee but I am concerned that (From what the beneficiaries attorney has stated) I may be liable for any ''losses''. What losses exactly I am unsure of as the letter I received did not disclose this. Is the beneficiaries attorney required to supply me with full disclosure so that I am able to make a more informed decision? Thank you. RS in California
2 Answers from Attorneys
Re: Removal as Trustee
You should retain counsel and yes, it's paid for by the trust. If you think you might be liable, then the last thing you want to do is withdraw as trustee. My firm handles these types of cases. If you're interested in representation, call me.
Re: Removal as Trustee
Yes, I reccomend that you hire counsel to assist you. Unless there has been wrongdoing, it is eztremely unlikely that the trust would have to pay this attorney's fees.
Feel free to call my office to discuss further.
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