California Trusts Legal Questions

  You say you are "considering a special needs trust". I don't see a lot of benefit to creating a special needs trust at this time. If you want to leave some funds for your sister in your estate plan, you should direct those to a special needs trust. Right now, you should just help her to the extent you are able and want to from your own funds.  In helping her, you need to consider the rules of SSI and Section 8.  First, you must NEVER give a check to put in her bank account. That counts as income to her. Ideally, you should also not give her cash or a prepaid debit card. If SSI were to find out, for example, if they pressured her to explain how she was managing, that would also count as income. Section 8 is the most difficult. Anything that you give to a beneficiary, and anything that you regularly pay for, counts as income and increase the share of the rent that your sister has to pay. So, for example, if you decide to pay her cable bill, you musn't pay the monthly bill each month. That could count as income to your sister and increase the rent she has to pay. What you would do is occasionally, and irregularly, pay a round amount that amounts to more than a month's bill. So, for example, in early January pay $400, and in mid-March pay $300. There are assets which are exempt. So if, for example, you bought her a used car, that wouldn't affect her SSI or Section 8. If you paid for repairs or tires for that car, that wouldn't affect her benefits. If you bought her a bus pass every single month, SSI wouldn't count it but Section 8 would consider that income. So you might do that once in a while. Medical care not paid for by Medi-Cal doesn't count. So if you wanted to pay a dental bill for her, that wouldn't affect her benefits. Thanks for being a caring sibling. I hope this points you in the right direction.  ... Read More

If you are the trustee, then you have a fiduciary duty to act in the best interest of all of the beneficiaries and to keep invest the trust assets.  Discuss with the beneficiaires, but it isn't always possible to keep everyone happy.  At the end of the day, the trustee is in charge and must exercise his or her discretion in doing what's best for all of the beneficiaries.  Start with a conversation with all the beneficiaries and then act in accordance with your responsibilities.... Read More

There isn't a letter to send out to creditors.  There is a trust claims procedure that is filed with the probate court.  Then notice is given to creditors and published in the newspaper.  Creditors have 120 days to file a creditor claim with the trustee and the probate court.  The trustee would accept or reject any creditor claims.  Additionally, the trustee can negotiate the balance to pay off of any creditor claims.  Contact an attorney for a full consultation.... Read More

There are a long list of responsibilities of a trustee, and there isn't a one-size-fits-all checklist that can help with all trusts.  Each trust will have the same duties, but the trust instrument may require additional duties or subtrusts.  Trust administration would include reviewing the trust, notice to beneficiaries, filings with the tax assessor, notification to Medi-Cal, tax returns, creditor payments, and distribution to beneficiaries.  But trust administration may also include fiilng petitions with the Probate Court.  Best thing to do is to call or email an attorney for a full consultation.... Read More

Without knowing anything about your case and the parties, it is impossible to estimate the cost of litigation. The more you both fight, the more it will cost and the less money you both will haev. On average, I usually estimate $2,000 to $4,000 per month for litigation. Some months less, some months more.  So for a case that will go on for two years, that would be $48,000 to $96,000. Court statistics show that fewer than 3% of cases go to trial.... Read More

It depends on the debts, the assets, and the beneficiaries.  Yes, you can negotiate a lower pay-off of the debts.  However, if there are unpaid debts, the trustee may be personally liable and the beneficiaries may take their inheritance subject to the decedent's debts. There is a trust claims procedure with the probate court.  Best thing to do is hire an attorney for trust administration.... Read More

It's hard to say what to do without more information. First, you should determine if your mother had a will, then gather information about her assets. You may want to bring a peititon in probate to administer her estate. Or, her assets may not require a probate proceeding.  Contact an attorney in your area for a full consultation.... Read More

It's difficult to say without further information.  If there was a will or trust, you would be entitled to see a copy.  You're probably going to end up in litigation.  I would suggest that you call or email an attorney and give all of the facts of the case.  That way, you could get an answer to your question.  Contact an attorney for a full consultation.... Read More

The trustee has a fiduciary duty to inform the beneficiaries of the activities of the trust and to give an accounting of the assets of the trust.  Call or email an attorney to write a demand letter to to the trustee.  If she doesn't comply, then you would be filing a petition with the probate court to compel the trustee to give information and account or to remove the trustee.... Read More

First, on your second issue: When two trustees are named, normally the survivor is able to administer the trust alone when one dies. Your claim would be a claim of undue influence. California Code of Civil Procedure Section 337 gives a statute of limitations of four years for an action upon any contract, obligation, or liability founded upon an instrument in writing. A trust modification would fall within this.  You describe yourself as "the person the trust was written for." The person the trust was written for was the deceased sibling. Up to the moment of his death, he had full ability and power to change the trust in any way he chose.... Read More

The old trustee shouldn't continue to operate as trustee. But the bank needs to be immediatley notified that he has been removed. Hopefully there's a branch of the NY bank in California. If so, go into that bank with the documentation about the trustee's removal and your appointment. They should then put your name on the account instead of the prior trustee. After that, you can move the funds where you want.... Read More