Legal Question in Wills and Trusts in California
My sister and I are the beneficiaries of my father's living trust. He passed away a few months ago. One of the assets was the family home. Since he passed away, the house is being rented out.
My sister, the sole successor trustee, has refused to share any rental income with me during this time. I thought I was entitled to rent? She says I am not entitled to anything because I do not manage the property like she does. Please advise, thank you.
2 Answers from Attorneys
I presume the family home was in the trust and not part of his assets outside the trust that would be covered in his estate that might have to be probated. The trust documents decide what the rules are; she accepted being the trustee so she accepted the rules of the trust. If the trust provides for payment of a management fee to the trustee, then and only then is she entitled to that specific fee. She clearly is not entitled to keep the rents unless the trust specifically so states. Incidentially, no rental is profitable if the management fees equal or exceed the rental income.
You should flirst demand a detailed accounting from her as to what rents were collected, what fixed costs were paid [mortgage], utilities, other expenses, and any other charges she is claiming. As a beneficiary you are entitled to an accounting. If she refuses or gives only partial information yuou should ask her how she thinks she can claim to be a proper trustee. You should tel her she is in violation of the law and if she does not repay the trust and steps down as trustee you will have to go to court to force that to occur and the judge will not order the trust to pay her attorney fees.
If she still will not comply, you have to go to court to break the trust. You might be able to handle it yourself, but the judge might award you reimbursement of your expenses which means your sister pays for half of your costs.
your sister is likely entitled to a fee for serving as a trustee, depending upon the language of the trust agreement. you should in writing demand an accounting from your sister. if she does not respond or if you are not satifisfied with the accounting, you will need to file a petition with the superior court for an accounting and to have her removed as trustee. you should retain a qualified attorney to provide you with advice, prepare any necessary petition and represent you in court.