Legal Question in Wills and Trusts in California
Rental Paymenets on Property and Accounting
I am a benficiary of a living trust. The trustee has been residing in the settlor's home since his death last March. The trustee has also been driving vehicles owned by the settlor.
The home is in the SF Bay Area and has a significant market value. The vehicles include a late model Mercedes sports coupe and two SUV's.
It is my belief (from a read of CA Probate Code) that the trustee has a duty to make properties productive. So, if the trustee lives in the settlor's house and drives his vehicles, rent at market value would have to be paid.
Is that true? If the trustee does not respond to my request to pay rent would a court ususally grant a petition asking for payment?
Also the trustee has sent the 706 estate tax form - but not an accounting conforming to Probate Code 16063. The trustee appears to say that a 706 is sufficient. Would a 706 tax return be sufficient as a 16063 accounting?
4 Answers from Attorneys
Re: Rental Paymenets on Property and Accounting
you should retain an experienced and knowledgeable attorney immediately. if you do not have a copy of the trust, you should request in writing from the trustee: 1) a copy of the trust, 2) a formal accounting since death, 3) payment of rent from the date of death to the trust for both the house and the cars. if no response is received a petition for an accounting and/or to remove the trustee should be either filed with the court as soon as possible.
Re: Rental Paymenets on Property and Accounting
you are absolutly correct and the 706 is not a subsitute for an accounting except a fomal accounting to the court is not due to the court for one year after the death of the testator under normnal circumstances. these a not normal circumstances and i advise substantally all of the law guru questioneers you neet an attorney expert in probat/estate planing/litigatiopn and do not try to do this yourself as you can worsen the situation and waste a great deal of time --- I have been practicing law in the San Francisco Bay area for approximately 35 years and expert in the area in the category in which your question is placed. I feel I can help you in this matter and if you wish to consult with me please contact me at 925-945- 6000.
Re: Rental Paymenets on Property and Accounting
While the trust may authorize the trustee to remain in the house, it is unlikely. Do you have a copy of the trust? As a beneficiary, you are entitled to receive a full copy. You need some professional expert advice, asap.
Re: Rental Paymenets on Property and Accounting
An estate tax return - form 706 - shows the assets and liabilities of the decedent as of the date of death.
The estate tax return does not disclose what has happened to the debts and liabilities after death, so it cannot serve the purpose of the accounting required under the Probate Code, which is to allow the beneficiaries to understand what the current financial situation of the trust is, and to understand how it is being managed by the trustee.
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