QUESTION
Is witholding and using estate prtoperty in aticipation of beneficiary death and subsequent successor trustee inheritance conversion in California?
Asked on Feb 23rd, 2020 on Wills and Probate - California
More details to this question:
Person A is a successor trustee and beneficiary in California for an irrevocable family pot trust. Person B is a seriously ill dependent adult beneficiary. (sibling of A). B needs money for medical reasons. If B dies, before trust assets have been distributed, then A inherits. A has stated that she wants to keep the principle estate asset, a family home, intact and not sell, distribute or divide it. A is living in the home rent free. Death of the settlor was 13 months ago - no accountings have been made. Is A guilty of conversion in regards to B's share of the property? Any case law?
1 ANSWER
3 Awards
Not conversion -- Person A is not treating the property as belonging to him (e.g., renting it out on his own account, or transferring it to himself). But he is guilty of violating his duty of impartiality by treating himself better than he's treating the other beneficiary (you). If almost the only asset is a home, I can't see any justification for not selling it. You need to get an attorney involved. The proper venue (court where any petition would be filed) would be where the home is located.
Answered on Feb 24th, 2020 at 8:55 PM