QUESTION

Does this mean that a trustee can terminate my share of the trust.

Asked on Nov 25th, 2015 on Trusts and Estates - California
More details to this question:
A family member is serving as a co-trustee with my mother. She is very old and could pass away any day. He is trying to become the sole trustee. There is a section in the trust that states: Power to Terminate the Beneficiary's Share of the Trust. If the Trustee deems it necessary to terminate the beneficiary's share of the Trust to avoid impairing or diminishing the beneficiary's receipt of government or private benefits, or becoming ineligible for such benefits, the Trustee, in the Trustee's sole and absolute discretion, shall terminate the beneficiary's share of the Trust. If the Trustee terminates the beneficiary's share of this Trust, the assets of the beneficiary's share of this Trust shall be held, administered and distributed pursuant to the following provisions of this Article as though the beneficiary had died. We request, but do not require, that the remainder beneficiaries consider the purposes of the Trust in expending the property they receive. Should I be worried?
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1 ANSWER

Estate Litigation Attorney serving Redlands, CA at Price Law Firm, APC
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A trustee is a fiduciary for the beneficiaries that owes duties to the beneficiaries.  As one of the beneficiaries, the trustee cannot do anything against your best interests.  The clause that you quoted is very common so as not to impair the public benefits that a beneficiary receives.  If you have more concerns, then you should hire an attorney to assert your interests.
Answered on Nov 27th, 2015 at 9:08 AM

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