Legal Question in Wills and Trusts in California
Trust Beneficiary - What Now?
I recently learned that I am a beneficiary of a grandparent's (revocable, I believe)family trust, along with my two siblings. The trustee of the trust is my grandparent's only surviving child (other child was my parent, now deceased). I have a few brief questions:
1. Other than the initial notification letter, we have heard nothing on the status of settling the estate. Are we entitled to any disclosures as assets are sold (or resulting amounts)?
2. A home is one of the assets. Does the court system oversee that the house is sold at a reasonable price, or can the trustee set their own price, regardless of how low? If someone (not a part of the trust) had been living in the home rent free with the permission of the grandparent, does that oral agreement end at the time of death, and what, if any, obligations does the ''tenant'' have to the beneficiaries, if he is still living in the home?
Do we have any rights in any decisions that are made in regards to liquidating assets, or is our only role to sit back and accept whatever settlement check may arrive? Do we have any option to safeguard our inheritance without causing a family war?
2 Answers from Attorneys
Re: Trust Beneficiary - What Now?
As a beneficiary, you have the right to receive a copy of the trust.
Assets are distributed according to the terms of the trust. While there is no direct court supervision, the trustee is required by state law to act responsibly and as a fiduciary for the beneficiaries. Failure to do so could result in personal liablility on the part of the trustee to the beneficiaries.
Since you are in another state, you may want to hire legal representation here to protect your rights. The size of the estate will determine whether it is worth the expense, but since there is real property involved, it is probably considerable.
I would start out by requesting a copy of the trust to see what you are entitled to. Then, communication with the trustee is paramount.
If you would like help in this matter, call my office.
Re: Trust Beneficiary - What Now?
You have a right to a copy of the trust--this request form was probably part of the notification you received.
You also have the right to more information regarding the administration of the trust, such as assets, liabilities and expenses, by making a request of the trustee under Probate Code section 16061.
Regarding the tenant, he or she does not have the right to stay there without paying fair market rent, unless the trust, other written agreement or quantum meruit claim allows otherwise. The trustee has a duty to avoid self-dealing, so if the inhabitant is also the trustee, then he or she will likely have to move out.
The trustee also has a duty to maximize the value of the assets, so he or she can't take a price too low for the house--it would be in your interest to get an idea of the home's worth from an appraiser or local realtor.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
