Non Pro Rata Distribution

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

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

Most family trusts call for the outright distribution of assets to specific individuals (i.e., remainder beneficiaries) after the creators of the trust are gone.  In the most common scenario, the assets get doled out to the adult kids after Mom and Dad pass.  Even when a trustee is diligent and the situation is straightforward, it may take several months to pay off debts, value the various assets, liquidate them, and then distribute the proceeds to the beneficiaries in proportional shares.

Many trust disputes start when the beneficiaries get frustrated with the apparent lack of action by the beneficiary who also serves as trustee.  Brother trustee may decline to provide reports and documentation to the beneficiaries.  It may appear that he wants to hold onto the assets to benefit himself in some way – for example, he may live in the comfortable house in Roseville that he holds in the trust without paying rent, or he may operate and draw a salary from the family business that is a trust asset.