When A Trustee Goes “Rogue” – The McNamara Law Firm

Living Trusts are used to manage assets when the trust creator (settlor) is incapacitated, and also to wind up the affairs and distribute assets when the settlor passes away. The person in charge is called the “Trustee” and is named in the Trust document. The Trustee is a “fiduciary”, meaning the Trustee has many responsibilities and duties imposed by law. When the Trustee does his or her job well, the process typically runs smoothly. When the rules are not followed, problems arise. In such cases, the Probate Court can safeguard the interests of beneficiaries from a “rogue” Trustee who ignores their duties or fail to abide by the terms of the Trust.
Trust beneficiaries are entitled to many things under California law, including information from the Trustee, a formal accounting of Trust assets, and the right that the Trustee will follow the Trust terms. If a Trustee fails to fulfill those duties or commits a breach of fiduciary obligations, beneficiaries have the right to seek legal recourse in the Probate Court to enforce the terms of the Trust and protect their interests.
The Probate Court is responsible for overseeing the administration of Trusts and resolving disputes that arise between Trustees and beneficiaries, but will only get involved when properly asked. A beneficiary may file court papers when a Trustee is not doing their job. The judge will order a hearing or hearings, and has many powers, including the power to fine/penalize the Trustee, remove the Trustee, and hold the Trustee accountable. By seeking legal assistance and recourse through the Probate Court when necessary, beneficiaries can assert their rights and uphold the intentions of the Trust creator.
For more information, please contact the McNamara Law Firm at (661) 210-8232 or visit www.theMcNamaraLawFirm.com.