QUESTION
Successor trustee almost finished distributing from grantor trust; can beneficiary either force trust termination, or formally resign as beneficiary?
Asked on Oct 08th, 2015 on Trusts and Estates - California
More details to this question:
Our divorced father established a living, grantor trust long ago. Revocable during his lifetime, he was the settlor. He passed last year after a brief illness. I am named as the first successor trustee. Sibling now resides out-of-state. Children are equal beneficiaries. I am one; sibling is the other. As trustee I handled all in accordance with given powers and duties. I gave beneficiaries the trustee and trust information. I notified the other sibling/beneficiary of the plan to distribute assets, and received a signed acknowledgement. I distributed/transferred almost all assets. It is taking more than a year to dispose of father's house. I need a few more weeks to sell and collect the proceeds before distributing them. Other bene/sibling is now disgruntled about perceived events that transpired before. Pressuring me to terminate the trust forthwith, and threatens to resign as a beneficiary. And threatens to have the trust dissolved. I'm not sure that such actions could be forced on me
1 ANSWER
2 Awards
The threat to resign as a beneficiary doesn't really make any sense because that would leave your sibling without any right to the assets of the trust. If your sibling thinks that you have done something improper he/she could petition the court to have you removed as trustee, but based on what you have described that probably wouldn't be successful at this point. You should just work to wrap up the trust as quickly as you reasonably can do so, but as long as you are working diligently to do that I wouldn't worry too much.
Answered on Oct 09th, 2015 at 9:05 AM