Category: Trust Administration

Subscribe to Trust Administration RSS Feed

Zach Young, Second Generation Fiduciary, Helps Families with Transitions

Zachary Young is a private professional fiduciary with CMY Fiduciary Services in Sacramento.  His mother, Carolyn M. Young, began work as a fiduciary in 1986.  Zach received his bachelor’s degree in business and communications at Sacramento State University.  Zach joined his mother and sister, Lindsay Bowman, in the fiduciary business.  In 2012, he received his … Continue Reading

“California Trustee Removal Litigation and Mediation” Podcast

California trust disputes often involve allegations that trustees should be removed and suspended because they are acting improperly or have conflicts of interest. Attorney Denise Chambliss, author of an informative article on trustee removal, spoke with me on Trust Me!, the podcast of the Trusts and Estates Section of the California Lawyers Association.  Joining us … Continue Reading

Disney Grandson Languishes in the “Unhappiest Place on Earth”

While Disneyland may be the “Happiest Place on Earth,” a California probate court may be the opposite for a Disney heir, mused the U.S. Court of Appeals in Lund v. Cowan (9th Cir. 2021) ___ F.3d ___. Bradford Lund, a 50 year-old grandson of Walt Disney, sued the probate judge who rejected a settlement agreement … Continue Reading

Steps to Follow with a Difficult Co-Trustee

We’ve written about how co-trustee conflict fuels California trust litigation and the problem seems to be growing.  Trust administration grinds to a halt because a co-trustee (or two or three) is hostile, stubborn, self-serving and/or apathetic.  While trusts are supposed to provide a streamlined alternative to a court-supervised probate proceeding, the efficiency may be is … Continue Reading

No Bad Faith Required – Trustee of Spendthrift Trust May Be Compelled to Pay Attorney Fees Under Family Code Section 2030

Section 2030 of California’s Family Code provides an important safeguard to ensure the fairness of marriage dissolution proceedings. It allows the Court to order a more financially well-off party to pay some or all of the other party’s attorney fees, beginning as early as the start of the proceedings. Section 2030 was enacted to put … Continue Reading

Immortal Right — Income Beneficiary’s Entitlement to Accounting Continues After Death

Many California trusts confer a lifetime right to income on a person (often the surviving spouse) with the remainder passing to designated survivors upon the income beneficiary’s death.  When the income beneficiary dies, is it too late for the executor of the beneficiary’s estate to request an accounting for the purpose of evaluating whether the … Continue Reading

When Can California Trustees Use Trust Funds to Hire Lawyers?

Many family member trustees are uncertain about whether and to what extent they can use trust assets to obtain legal representation.  For example, when two parents choose their daughter, upon their incapacity or death, to administer their trust as the successor trustee, the daughter may be unsure whether she can use trust money to hire … Continue Reading

Lights, Cabin, Action! A Showdown Over Jurisdiction and Venue

One of the first steps before filing a lawsuit is to decide which court has jurisdiction over it and where it is properly venued.  It’s a significant choice – not only for strategic reasons, but also because a poor selection may prove fatal to the lawsuit.  Such a hefty decision is not always an easy … Continue Reading

Take a Fire Prevention Approach to Your Estate Plan

As we enter the New Year, it’s a good time to revisit your estate plan.  The big question is whether your will, trust, power of attorney, and advance health care directive accomplish your personal objectives.  Guidance from an estate planner will help you review your plan in light of tax and other changes in the … Continue Reading

What a Catch! California Courts Can Adjudicate Claims Against Nonresident Trustees

What court should hear a dispute over a California trust?  I briefed this question last month when a judge questioned if a case should instead be adjudicated in neighboring states.  Such jurisdiction issues come up occasionally given the mobility of family members with interests in trusts. A recent appellate case, Van Buskirk v. Van Buskirk … Continue Reading

Trust on Trial Celebrates a Fifth Anniversary

We started Trust on Trial with a post on undue influence in November 2015 and now mark the blog’s fifth anniversary.  We thank readers of our “five cents” for their feedback, reflect on where we’ve been, and look towards the future. Focused on California trust and estate litigation, and dispute avoidance, we have published 127 … Continue Reading

Who Gets the Tahoe House and Other California Real Estate Inheritance Disputes

Many California trust and estate disputes involve the allocation of real estate amongst several beneficiaries.  Mom and Dad, may they rest in peace, owned an upscale home in the Fab 40s neighborhood of East Sacramento, a sweet Tahoe vacation home, and a few rental duplexes, but did not specify how these assets were to be … Continue Reading

En Garde! A Trust’s Revocation Method May Not Be Enforced Unless It Explicitly States It’s the Exclusive Means of Revocation

Creators of trusts (also known as settlors or trustors) usually think long and hard about how their property should pass when they die.  It’s therefore common for trustors, or their lawyers, to incorporate protective safeguards into their trust instruments to shield trustors from their own whim and indecision, and ensure nobody trifles with their wishes … Continue Reading

Guardian of the Galaxy – What is the Role of a Guardian Ad Litem in Trust and Estate Disputes?

Most California trust and estate disputes involve adults who can make their own choices about what to seek and how hard to litigate, such as the common scenario of siblings competing for assets.  But many disputes, or at least potential disagreements, involve people who can’t fend for themselves, such as mentally incapacitated adults, children, or … Continue Reading

How Does Amended California Emergency Rule 9 Affect Probate Proceedings?

(Editor’s Note: The example in the post below has been revised.) California causes of action are subject to various statutes of limitation.  Unless a plaintiff or petitioner files a complaint or other document asserting a cause of action within the applicable limitations period, the filing will be deemed time barred and subject to dismissal.  Under … Continue Reading

What California Trust and Estate Litigation Will Arise from the Economic Downturn?

The COVID-19 pandemic has idled workers and the coming weeks will bring more news of business closures and bankruptcies.  After a decade of sustained growth, we are facing a recession of uncertain depth and duration.  The New York Times recently reported that some Americans are turning (or perhaps returning) to “financial therapy” for support. In … Continue Reading

Helping Families and Solving Problems – A Conversation with Trust Officer Alysia Corell from Exchange Bank

Bank trust departments, also referred to as corporate trustees, provide professional management to the administration of California trusts.  People may choose to name a bank to act as successor trustee when they can no longer manage their own assets, either because they don’t have family members they can count on to handle assets or because … Continue Reading

Trustees May Not Need Lawyers to Seek Instructions from California Courts, But the Do-It-Yourself Approach Remains Hazardous

While California trustees hope for smooth sailing, they must navigate waters that can be choppy depending on the assets, trust instruments and personalities involved.  As fiduciaries, trustees must honor the trustors’ intent as expressed in the trust instruments.  Sometimes the language is unclear and the trustee needs instruction from a court as to how to … Continue Reading

Another Shiner – Court Confirms Hefty Fee Award to California Attorney General in Breach of Charitable Trust Action

In California, the Attorney General oversees charitable trusts.  This responsibility includes bringing legal actions against trustees who breach their fiduciary duties.  Government Code section 12598 provides that the Attorney General is entitled to recover from a defendant all reasonable attorney’s fees and actual costs incurred in an action to enforce a charitable trust.  But what … Continue Reading

Mind Your Notice in California – Even Remote Contingent Beneficiaries May Need to Be Served

It’s unremarkable that California courts require that notice be given to affected beneficiaries in trust and probate proceedings.  After all, the Fourteenth Amendment guarantees that no person will be deprived of life, liberty, or property without due process.  While contingent beneficiaries may not have received an inheritance yet, they may someday and so should know … Continue Reading

Openness and Transparency Help Avoid Trust Disputes – An Interview with Tracy Potts

Tracy M. Potts has nearly three decades of experience in California with estate planning, administration and litigation.  A Texas native, she earned her law degree from Southern Methodist University School of Law.  Her leadership experience includes chairing the Executive Committee of the State Bar of California, Trusts and Estates Section, as well as the Sacramento … Continue Reading

Put It on My Tab – When Is a Lifetime Gift in California an Advancement Against Inheritance?

A primary purpose of estate planning is to determine what a child will inherit (if anything) upon a parent’s death.  But what about a gift given during the parent’s life?  Is it an advance on the child’s inheritance, like putting it on the child’s tab until the trust is cashed out?  Or is the gift … Continue Reading

California Trustee Must Be Careful in Seeking Release from Beneficiary

Can a California trustee require a beneficiary to sign a release in order to get a distribution from a trust?  A question like this appeared recently on the AVVO “Free Q&A” page and makes for a perfect blog topic. Trustees understandably want to wrap up trust administration without having to worry about being sued by … Continue Reading
LexBlog