A trust document serves as a roadmap that outlines exactly how the trustee must manage and distribute trust assets under California law. State law recognizes this as one of a trustee’s essential fiduciary duties.
If a trustee refuses to follow the trust document, it can cause significant harm to the trust and, ultimately, to your inheritance rights. Fortunately, a qualified California trust attorney can help you protect your interests.
At Gokal Law Group, we have spent years helping beneficiaries ensure that trustees comply with both California trust law and the terms of their trust instruments. Read on to learn what to do if a trustee fails to follow trust terms or California trust law.
What is a Trustee’s Duty to Administer the Trust?
Under California Probate Code §16000, trustees have a “duty to administer the trust.” This means the trustee must manage and distribute the trust strictly in accordance with both California law and the terms of the trust instrument.
If a trustee acts contrary to those terms or disregards their legal obligations, it constitutes a breach of fiduciary duty. Trustees cannot administer a trust in any manner other than what the document and the law permit.
CA Trust Laws: What Happens if a Trustee Doesn’t Follow the Trust Terms?
If a trustee fails to comply with the trust’s terms, beneficiaries may have legal grounds to pursue trust litigation and, in some cases, request the trustee’s removal.
Common examples of a trustee not following the trust terms include:
- Failing to make required distributions to beneficiaries according to the schedule or instructions in the trust.
- Ignoring specific directions such as selling, retaining, or transferring certain property.
- Withholding accountings or information that beneficiaries are entitled to receive.
- Commingling trust assets with personal funds or using trust assets for personal gain.
- Treating beneficiaries unequally when the trust requires equal treatment.
If you are experiencing one or more of these issues, here are common legal remedies:
- Consulting a Trust Litigation Attorney:
Your attorney will review the trust document and relevant records. Often, this begins by formally requesting an accounting and other information to which you are legally entitled. - Filing a Petition for Accounting or Distribution:
Your attorney may file a petition under Probate Code §17200, compelling the trustee to provide a full accounting and distribute assets according to the trust’s terms within a court-supervised timeline. - Petitioning to Remove or Replace the Trustee:
If a trustee’s misconduct or neglect is established, the court may remove and replace them. In some cases, the court can also order the trustee to return any misappropriated assets.
How to Prove a Breach When a Trustee Isn’t Following The Trust Terms
When a trustee fails to follow the trust terms, the burden of proof generally rests on the beneficiary (the petitioner) to demonstrate that a breach occurred.
You’ll need to show that the trustee violated California trust laws or the specific provisions of the trust document. This is where working with an experienced beneficiary rights lawyer becomes critical.
In many cases, a copy of the trust instrument and a trust accounting are sufficient to show that the trustee has failed to comply with their duties. However, because these documents can be complex, your attorney will determine whether additional evidence is necessary.
If more documentation is needed, your lawyer can request it during the litigation process through discovery, which is designed to uncover information relevant to your claim.
Nicholas D. Porrazzo, a partner and trust litigation attorney in Orange County, offered more insight:
“The evidence you need depends on your situation. If the trust terms dictate that the trustee is supposed to do something specific with real estate they are refusing to do, maybe closing or escrow documents will be vital because they are associated with a real estate sale or purchase. An attorney will provide expert guidance throughout the process.” – Nicholas D. Porrazzo, California Trust Litigation Attorney, Gokal Law Group
Premier Trust Litigation Lawyers in Orange County
If a trustee is refusing to follow the trust terms, working with an attorney and taking legal action is of the utmost importance. The longer a trustee fails to act properly, the more damage may be done to the trust and its beneficiaries – so time is of the essence.
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