NicoleReed

What Happens to an Irrevocable Trust When the Grantor Dies?

A trust is nothing more than a contract, a legal agreement where one party (the “trustee”) agrees to hold the legal title to assets and manage them for the benefit of others (the “beneficiaries”). Some trusts are “revocable,” which means that the trustmaker (sometimes called the “grantor,” “creator” or “settlor”) can modify or revoke the …

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How Long Does a Trustee Have to Distribute Trust Assets?

According to California Probate Code §16000, a trustee must administer the trust according to the terms of the trust instrument, including any asset distribution plan set forth in the trust document. Because there are many types of trusts and innumerable trust agreements the timeframe will depend on the distribution scheme set forth in the trust …

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How Much Should a Trustee Be Paid in Fees?

Trustees are tasked with the trying —and often thankless— job of managing trust assets to benefit the trust’s beneficiaries. In exchange for their services, California Probate Code §15681 allows trustees to receive “reasonable compensation.” However, if the trust document itself specifies different pay arrangements, then under Probate Code §15680, trustees are legally entitled to be …

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What Happens If a Trustee Refuses to Give a Beneficiary Money?

The person who sets up a trust appoints one or more trustees to manage the trust assets for the benefit of the trust’s beneficiaries. According to California Probate Code §16000, trustees have a legal obligation to follow the instructions outlined in the trust instrument when administering the trust. As part of this duty, trustees must …

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Who Can Sue a Trustee?

A trustee has a legal, fiduciary duty to act prudently in managing the trust solely in the best interests of its beneficiaries. If a trustee violates this fiduciary duty, the beneficiaries can pursue legal action to remove the trustee and, in some situations, sue a trustee for their wrongdoing.  Some common reasons trustees can be …

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