California Trusts Legal Questions

You need to file a written objection to being removed as trustee. You say the daughter has not fulfilled all the wishes in the trust. But you are co-trustee. You and the daughter were equally responsible for carrying out the terms of the trust. This death was almost 1.5 years ago. If the daughter had effective control of the assets and has not distributed them properly, you could not only objection to her petition to remove you, but include in your objection a request that she be removed. You will need a lawyer for this.... Read More

I assume the trustmaker is now deceased. If they didn't sign a prenuptial agreement, his wife is entitled to all of the community property and 1/3 to 1/2 of all the trusmaker's separate property (depending on how many kids there are). Her rights supersede the trust. In these cases, it's usually best to gather all heirs and beneficiaries and work out a written settlement agreement.... Read More

I can't imagine what the parents are thinking. It sounds like they've heard incorrect information somewhere. If the disabled person marries, the spouse's income will be counted when determining whether or not the disabled person gets benefits. And even if the spouse is disabled and qualifies for benefits, the government has exaggerated ideas of how much a couple saves by having one household; the total check for two people is about 1.5 times the check for one person. Because of this, when a person depends on benefits, they need professional advice before marrying. In most cases, far from solving any problems, marrying creates a financial disaster. The parents can provide for the disabled person by establishing a special needs trust for his/her benefit to which any inheritance can go. In any event, the state does not have a claim for reimbursement of benefits paid on behalf of a disabled person until the disabled person dies, not when the representative payee dies.... Read More

As the surviving spouse, she is an omitted spouse under the will in which she would be entitled to all community property, and 1/3 of the separate property (if he had more than one child).  She can also petition the court for a probate homestead to allow her to live at the home for the rest of her life.  She also has the first priority to be the administrator of his estate.  Contact an attorney for a full consultation.... Read More

Being a trustee is different from being a beneficiary. Declining to serve as trustee does not take away your right to receive whatever your parents left you in their trust. That said, only sign if you trust your sister who went to the lawyer to administer the trust exactly as it is written, taking absolutely no extra advantage to herself from being in charge. Things to consider: (1) the person (or people) who serve as trustees are entitled to be paid for doing that; (2) it is very cumbersome and slow for four people to serve as trustee. All four of you would have to sign every document. You might talk to your other siblings and see whether the three of you who received letters could agree on only two of you resigning, and the other one staying on as co-trustee with your sister, for some oversight.... Read More

If you have a life estate in the home, then most likely after your death the trust transfers the home to someone else.  If so, then the trust does not terminate until after you die.  Take a look at the terms of the trust to verify.  Contact an attorney in your area for a full consultation.... Read More

Even without known IRS issues, a prudent trustee often waits a year for full distribution of trust assets, to be sure there is money in case one last tax return has to be filed, or an unknown creditor files a claim. The trustee has the option to make a partial distribution to all heirs in the meantime, but does not have to.... Read More

You also asked this question on Avvo, where it has been answered. You are correct in thinking that tax returns will not be required in the future if there is no money. A trust only has to file an income tax return if it has income of $600 or more. With no money, the trust will not be earning interest.... Read More

Has anyone filed to probate the will? If the home is titled to a trust, then the trustee has the authority to give you notice. Otherwise, if the home is not in a trust and probate is required, no one has authority to give you notice to vacate unless and until they have received Letters from the court appointing them as executor. To receive those, they had to file a petition with the court, and they would have been required to send you a copy of that petition along with a copy of the will. Check with the court to see whether there is a probate for your father's estate. If there is, it will list the attorney. ... Read More

Once there's no money in the trust, only the house, it makes sense that you are responsible for costs the trust must incur to keep the home in the trust. How else would those costs be paid? But the trust only has to file income taxes if it has income of $600 or more. It sounds like the trust has only expenses (which you are paying), not income. So I'm not clear why your brother feels he has to file taxes. If he had to file taxes for administering the trust after your mother's death, up till the distributions, those expenses should have come out of the trust BEFORE the bank accounts were distributed. If he didn't do that, he should request funds from ALL beneficiaries to repay him for that expense.... Read More