Trust administration in California is a dynamic process, which can cause many beneficiaries to ask the same question: How long does a trustee have to settle a trust in California? The truth is this depends on your unique circumstances. But that doesn’t mean a trustee can neglect their duties, and delays often signal an abuse of power.
How Long Does a Trustee Have to Settle a Trust in California?
As a beneficiary, you are likely concerned with how long a trustee has to settle a trust and complete the distribution of trust assets to beneficiaries in California.
There is no predetermined timeframe for distributing assets. This is because California trust law states trustee duties include administering the trust according to the terms of the trust document.
Generally, a trustee can fully distribute a trust with an outright distribution provision within 12 to 18 months. If there are no complicating variables, they can even distribute assets in as little as 4 to 5 months.
What Can Delay the Distribution of Trust Assets to Beneficiaries in California?
Outlining potential delays is essential to answering the question, How long does a trustee have to settle a trust in California? Several factors can play a role in elongating this process, and a few examples include:
- Selling property or other assets: If a trust has significant assets to sell, like a car or house, that require considerable work before you can sell them, or if there are multiple properties to sell, this can delay the process.
- Taxes: Taxes can also play a significant role. For example, filing a tax return can impact how long it takes to make trust distributions.
- Trust Terms: Trust terms can also play a significant role in delays. For example, if a trust has a staggered distribution scheme as opposed to an outright distribution provision, this can keep the trust open for several years.
- Trust disputes: If the trustee is sued or there is an ongoing trust dispute among beneficiaries, this can also cause a significant delay before you can receive assets.
What Information Are Beneficiaries Entitled to Receive?
While delays are not unusual, as a beneficiary, you are entitled to several types of information to keep you in the loop, which is essential to know for those wondering, How long does a trustee have to settle a trust in California?
If you do not receive the information you are entitled to because the trustee is either negligent or outright refusing to provide it, this is a significant red flag and reason to pursue California trust litigation. As a beneficiary, you are entitled to receiving:
- Notice of Administration: Per California probate code 16061.7, trustees must send a notice to each beneficiary no more than 60 days after the settlor’s passing.
- A copy of the trust: Per California probate code 16061.5, trustees must provide a complete copy of the trust document.
- Updates and accounting: Trustees have a fiduciary duty to account to beneficiaries and keep beneficiaries “reasonably informed” by providing regular updates about the trust administration status and how the trustee is administering the trust.
“These documents are like a beneficiary’s insurance to protect your inheritance, ensure that the trustee is doing their job, understand what is delaying administration, and determine if you need to work with a premier trust lawyer in Orange County to secure and receive your inheritance.” – Mónica Reyes-Santiago, an Associate Orange County trust lawyer at Gokal Law Group
What if the Distribution of Trust Assets to Beneficiaries in California is Taking Too Long?
Understanding when distribution is taking too long is at the heart of the question, How long does a trustee have to settle a trust in California?
If administration lasts longer than 18 months and the trustee isn’t close to distributing assets, this could be a significant cause for concern. In these situations, it is important to collect and read all the information and communications with the trustee closely.
We advise working with a premier trust contest lawyer in California at this stage because interpreting the legal language in the trust document and applying it to probate code and your specific situation requires considerable expertise and experience.
Your attorney will typically draft and send a demand letter to receive any information they failed to send and, if necessary, prepare for California trust litigation.
Premier Trust Litigation Lawyers in Orange County
So, how long does a trustee have to settle a trust in California? No simple answer exists for this question because it depends on your unique situation and the trust document. Still, this is not an excuse for trustees to neglect their responsibilities. In more severe cases, this is a symptom of a trustee abusing their power and violating their fiduciary duty, and working with an attorney to pursue California trust litigation is essential to protect your inheritance.
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