Legal Question in Wills and Trusts in California
Succession of Inheritance
My daughter's paternal grandfather just passed away. We were told that her father, who has been deceased for 3 years was named as a beneficiary of a savings account and a living insurance policy. My question is would my 22 yr old daughter, who is her father's only next of kin inherit the savings account and life insurance or would her uncle who is the trustee of her grandfather's trust? If so, is there a way of finding the names of the bank and insurance company used? Also, when we received the copy of the trust the only asset listed was the family house but no bank accounts, stocks, or life insurance policies. We know for a fact that these are apart of his estate and have requested an accounting, according to the guidelines of the trust, for the past six years that her uncle was the executor of the trust because her grandfather was incapacitated. Her uncle was suppose to give an accounting to all the listed beneficiaries annually, (which my daughter is one of) and he failed to do so.
Is there an approximation to how long an accounting of this sort should take? How long is too long?
5 Answers from Attorneys
Re: Succession of Inheritance
An formal accounting in a small estate should take about 30 days.
Also, there is a difference between the trust owning an asset and a beneficiary designation. Might want to check those assets to determine how they were held.
Re: Succession of Inheritance
Regarding the life insurance/savings account: It depends specifically on the policy/account. If your daughter's father was the only beneficiary on the policies and their was no survivorship provision (requirement to survive the gift), then it sounds as if she would be the beneficiaries. My guess is otherwise, most people put more then one beneficiary down on those policies, but you would need to check directly.
Regarding the accounting: It depends on the trusts terms. There is usually, at least, a requirement for annual accounting. And if that is the case then it sounds as if the Uncle is in breach of his fiduciary duty as trustee by not supplying your daughter with an accounting. However, unless your daughter is incapacitated, it should be her duty to speak to an attorney and hold her uncle accountable.
Re: Succession of Inheritance
I have no idea what a "living insurance policy" is. But, if her father is named the beneficiary and there is not contingent beneficiary, the insurance company will pay the death benefit to her father's estate. As for the bank account you mention, if the same is true of the account. If there is a trust, you can demand of the trustee a copy of the trust agreement.
A trust agreement is a contract. The successor trustee, her uncle is a fiduciary. You should seriously consider filing an action for an accounting against the Uncle. His failure to account and any liability for improper conduct is his own and should not come out of the estate.
If you do not protect your rights, no one else will.
Call me if you want to pursue this further.
Re: Succession of Inheritance
I have no idea what a "living insurance policy" is. But, if her father is named the beneficiary and there is not contingent beneficiary, the insurance company will pay the death benefit to her father's estate. As for the bank account you mention, if the same is true of the account. If there is a trust, you can demand of the trustee a copy of the trust agreement.
A trust agreement is a contract. The successor trustee, her uncle is a fiduciary. You should seriously consider filing an action for an accounting against the Uncle. His failure to account and any liability for improper conduct is his own and should not come out of the estate.
If you do not protect your rights, no one else will.
Call me if you want to pursue this further.
Re: Succession of Inheritance
Yes, she should take by representation because a life insurance policy does not go through Probate and is never part of the decedent's estate.
An accounting can take up to a year or more, depending on the complexity of the estate.
You may need to file for an accounting with the Court.
Please feel free to contact our office for assistance. We specialize in trusts and estates and I believe we can assist you without hurting your pocketbook.
Please feel free to learn a little more about our firm and what we do on our site No-Probate.com.
I can be reached through the site or at the number and email provided by LawGuru.
Your Truly,
Scott
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