Legal Question in Wills and Trusts in California

Re: trust estate

I believe you mean that you are the trustee (or successor trustee) of your sister's trust. Depending on the trust, the trustee or successor trustee often has broad powers involving the decedent's assets, such as her house in this case. You should review the trust to see if it allows you to rent the house until your niece reaches 21. Alternatively, it may allow you to borrow against the house or use other funds from your sister's estate to pay for these taxes and or other expenses as they come up (plumbing problems, new roof, painting etc.)

If you do not pay the taxes, they become a lien against the property by the state, and the state can foreclose on the property.

If you don't understand the trust, and most people don't, you should contact an estate planning attorney who is skilled in reviewing the trust and can tell you in plain English what your options are, usually for not much money. Usually the trustee can use funds from the trust to pay for these attorney's fees, and to hire accountants to prepare tax returns for the trust.

I am happy to assist you in this regard, should you need to consult a professional. Alternatively, you can go back to the person who drafted the trust and speak to him or her.

Re: trust estate

You'd be entitled to a reimbursement, most likely, for the money you've spent. Is there a reason it's vacant, such as the trust not allowing you to rent it?

As a trustee you have the duty to maximize the overall value of investments in the trust, unless the trust directs otherwise--you ought to have an attorney review the trust to see what your options are.

It would seem that the house should be rented, or if selling it and moving the funds to another type of investment is better, and allowed by the trust, it should be considered.