Can a beneficiary sue a trustee to compel distribution?
Can a beneficiary sue a trustee if the trustee has breached their fiduciary duties, committed misconduct or harmed the trust? The short answer is yes. Trust beneficiaries may bring a claim against a trustee so long as they have a valid reason.
How long does a trustee have to distribute to beneficiaries?
twelve to eighteen months
In the case of a good Trustee, the Trust should be fully distributed within twelve to eighteen months after the Trust administration begins. But that presumes there are no problems, such as a lawsuit or inheritance fights.
Can a trustee override a beneficiary?
In most cases, a trustee cannot remove a beneficiary from a trust. This power of appointment generally is intended to allow the surviving spouse to make changes to the trust for their own benefit, or the benefit of their children and heirs.
Can a trustee go to jail for stealing from trust?
Yes, a trustee can be jailed for theft if they are convicted of a criminal offense. Under California law, the embezzlement of trust funds or property valued at $950 or less is a misdemeanor offense, which is punishable by up to 6 months in county jail.
Can a trustee refuses to pay a beneficiary?
Can a trustee refuse to pay a beneficiary? Yes, a trustee can refuse to pay a beneficiary if the trust allows them to do so. They may be able to pursue a lawsuit for breach of fiduciary duty, petition to instruct the trustee to make the requested distribution, or petition the court to have the trustee removed.
Can a trustee withhold funds?
Per California Probate Code Section 16004.5, a trustee can withhold a reserve for expenses. This is an amount held back from the distribution to pay for trust expenses such as tax preparation fees, taxes, recording costs, trustee fees, accounting fees, and other costs and expenses related to the administration.
What can you do if a trustee refuses to deal?
The first option you have is to file a petition with the probate court to force the trustee to act fairly based on agreed terms of the trust. If the trustee fails to listen to court rulings, they can be expelled from their duties.
Can a trustee refuse to give an accounting to a beneficiary?
That is dealing with a trustee who refuses to do the right thing. Can the trustee refuse to give an accounting to the beneficiary? If you are a beneficiary of a trust and you’re entitled to receive money out of that trust, the trustee is supposed to follow the terms of the trust.
Can a beneficiary of a trust receive money from the trustee?
If you are a beneficiary of a trust and you’re entitled to receive money out of that trust, the trustee is supposed to follow the terms of the trust. The trustee is supposed to give you your money, especially if it’s an outright distribution.
Why is a trustee not making distributions to beneficiaries?
There are a variety of reasons a trustee is not making distributions to the beneficiaries. One of the most common, however, is that the trustee simply does not understand what is required by the trust. Most people who are appointed to serve as a trustee are not experienced in being a trustee, and it can be a difficult job.
What happens if a trustee shows favoritism to a beneficiary?
A trustee is also expected to show no favoritism among classes of beneficiaries or commingle trust property with their own personal property. If a trustee breaches their fiduciary responsibility to beneficiaries, they can be held personally liable through court proceedings.