Legal Question in Wills and Trusts in California

What effect does it have on what?

The trustee is bound to manage and distribute the trust assets as stated in the trust document. If the asset is in the trust, and the trust and the will attempt to distribute the assets in different ways, then the trust document controls.

You need to take the trust and will documents in question to an attorney to advise you as to the specific distribution in your case.

I'm afraid your question is a little vague. When, and if, the trustee properly conveys title out of the trust the trust instrument no longer controls the asset, and its new owner is vested with ownership. Are you concerned about the impact on taxes, creditors of something else? Was the distribution made inconsistent with what the trust required?