Trusts
If you recently discovered that you are the beneficiary of a trust in California, you may have a number of questions about your newfound status. For example, you may wonder, “What rights do I have as a beneficiary of a trust?” Understanding your rights as a beneficiary is essential because you are entitled to the cash or other assets held in that account.
Understanding Trusts
Trusts can replace or supplement a will, as well as manage one’s property during life. As an estate-planning tool, a trust manages the distribution of a person’s property and assets by transferring its benefits to different people named in the trust. These people are called “beneficiaries.”
When creating a trust, a property owner transfers legal ownership of their property to a person or institution, called a trustee. The trustee manages the property in the trust for the benefit of the beneficiaries named in the trust. A trust creates a fiduciary relationship between you as the beneficiary and the trustee.
What are Your Rights in California?
A trustee must act solely in the best interests of the beneficiary when handling trust property. As a beneficiary, you should be aware of your rights, so a trustee does not take advantage of their position. Trustees who do not live up to their fiduciary duty may be legally accountable to the beneficiary of a trust for any damage to his or her interests.
In California, the trustee is required to provide an annual accounting to “each beneficiary to whom income or principal is required or authorized in the trustee’s discretion to be currently distributed,” according to state probate code.Additionally, beneficiaries are entitled to an accounting of the trust in the event the trust is terminated or the trustee changes.
An accounting of a trust must satisfy the legal requirements set by the state of California. Trustees must inform beneficiaries of any expenses incurred by the trust as well as any property that has been distributed by the trustee. Beneficiaries must also be informed of the extent of property still held in trust, in addition to any obligations the trustee is required to pay.
What Should You Do if You Feel Your Beneficiary Rights Have Been Violated?
If you are the beneficiary of a trust and feel your rights were violated, talk to Daniel Leahy. Serving Alameda County and the surrounding area, the Law Offices of Daniel Leahy in Oakland can protect your rights. Call (510) 985-4151 or contact us online to set up a free consultation.
Estate Administration
While we might consider it rude to investigate the amount or circumstances of a gift, it is perfectly reasonable – and even advisable – to seek further information if you think a gift may be fraudulent. Elder abuse may involve coercing aging relatives into giving away money or other assets, and conditions like dementia and Alzheimer’s disease can prohibit a person from being fully aware of the value of what they are giving away. If you received a gift from someone you believe was impaired or unduly influenced, contact an attorney experienced in fraudulent transfers to make sure your own rights are protected.
Impaired Conditions and Gift-Giving
It is unfortunately common for people in impaired mental states to give away valuable property and assets. Luckily, gifts made under these conditions can be reversed regardless of whether the gift-giver is still alive. A gift-giver must have “testamentary capacity” in order for a giftto be considered legally valid.
Testamentary capacity requires that a person be aware and understanding of the nature of their actions, and is specific to different actions. This means that someone who lacks testamentary capacity for writing a will may not lack that capacity with regard to designating power of attorney. The burden of proof rests on the party who aims to show that the gift-giver did not have the capacity to make a gift while of sound mind.
Undue Influence Over Gift-Givers
In addition to impaired conditions, undue influence may affect the legal standing of a gift. You cannot coerce or force someone to give you a gift. The legal definition of a gift requires that it be given voluntarily by the originator of the transfer of money or goods. The court can ask a variety of questions to determine whether a gift was made under undue influence, including whether the gift was given in a manner consistent with any prior plans, the motive behind the gift, and the relationship between the donor and the recipient.
Consult a California Estate Planning Attorney
If you feel you or a loved one has been coerced or tricked into giving a gift, Daniel Leahy can help. An experienced Northern California attorney, Mr. Leahy handles matters of trusts and estate law and serves Alameda County and the surrounding area. At the Law Offices of Daniel Leahy in Oakland, we are prepared to answer your legal questions. Contact us online or call (510) 985-4151 to set up a free consultation.
Estate Administration
When a loved one passes, they often leave behind a home or vacation residence to their children or other heirs. While this may not be an issue for only children, it can present financial hardships and conflict when multiple heirs receive real property, like a house, condo, or vacation home. When only one person wants to sell the property and the other wants to maintain ownership, a partition action may be the only recourse for such a situation.
A partition action is when the court orders the sale of the property and division of profits, division of land, or appraises the price of the property so one owner may know how to buy the other out.
Inheriting assets as a group
When you and a sibling inherit a property in California, you each own half of the property or its value unless the will has set out specific provisions for allocating the property’s value. While some siblings may want to keep the property as a rental or for future inhabitation, frequently, one sibling wants to sell and the other prefers to retain. In such a case, one sibling can buy the other out in a lump sum, one sibling can pay the other monthly installments like a mortgage, or, in extreme cases, the siblings can file for partition, which allows a judge to arrange for the sale so you no longer have co-ownership.
To sell or not to sell?
If you and your siblings cannot reach a cordial agreement to keep or sell the house, involving the court may be your only option. California courts will not force the continuation of co-ownership if one of the parties does not want to remain in such an arrangement, and can force the sale of the property as a result. The downside to this is that the sibling who wishes to keep the property may be forced to leave if they cannot arrange to become a tenant of the new owner.
Talk to an experienced California trust and estate attorney
If you have inherited a property and have a dispute with your siblings, Daniel Leahy can help. Mr. Leahy is an experienced Northern California estate planning attorney. Serving Alameda County and the surrounding area, the Law Offices of Daniel Leahy in Oakland offers the answers and guidance you need. Call (510) 985-4151 or contact us online to set up a free consultation.
Wills
When a loved one has recently passed, it is important to the surviving family members that the final wishes of the decedent be respected, especially with regard to their money, property, and other assets. If a family member or other party feels that is not the case, they have the option to contest the will.
To contest a will means to change or eliminate some of the document’s provisions and, in extreme cases, void the will entirely. While most wills proceed through the probate process – that is, the legal process of authorizing a will as valid – some were created or signed under invalid circumstances.
Anyone who stands to gain something from a will can contest the document in court.
Can I contest a will in California?
As with many legal actions, contesting a will is very time-sensitive. You may contest a will as soon as someone dies; however, if another person has already filed to have the will probated, you must contest the will before the probate hearing. If you cannot do that, the statute of limitations is 120 days after that hearing date to file your contest.
When you do file, the burden of proof rests on the contestor. This means that, if you are the party alleging that the will is invalid in some way, you must provide more evidence supporting your point of view. For example, if you are alleging that the will’s author was not mentally capable of authorizing a legal document, you would need to provide eyewitness testimony or medical records to support that claim.
Grounds for contesting a will
While each state has its own unique set of laws regarding wills, there are four major instances that are considered grounds for contesting a will in California:
- The will is not in compliance with relevant state laws.
- The will’s author did not have the capacity to sign their will (for example, if they were afflicted with dementia or Alzheimer’s disease at the time of signing).
- The author was coerced into signing a will against their wishes.
- The deceased was tricked into signing.
Consult a skilled trusts and estates lawyer in California
Whether you are a trustee, beneficiary, executor, or administrator, Daniel Leahy is prepared to treat your unique situation with the sensitivity and attention to detail it deserves. Mr. Leahy is an experienced Northern California estate planning attorney who serves Contra Costa County and the surrounding area.
At the Law Offices of Daniel Leahy in Oakland, we are prepared to handle your legal questions after a loved one has passed. Contact us online or call (510) 985-4151 to set up a consultation.
Trusts
When a loved one passes, it is important to adhere to their wishes with regard to their money and property. If they placed their assets in a trust, there may be an administrator of the trust who will handle the dissemination of those assets. The designated administrator of a trust has an obligation to act in the best interest of the beneficiaries of that trust; if they fail to do so, there are several legal courses of action that beneficiaries can pursue.
The administrator’s obligation is referred to as fiduciary duty, which is the obligation to act in someone else’s best interest. A fiduciary duty arises when someone places their trust and confidence in another person, with the knowledge of that person.
Remedies for misuse of assets
When a trust administrator or “trustee” steals or misuses funds from a trust in California, they open the door to a lawsuit. If you can trace stolen funds to the administrator in question, enjoining the funds – which means urgently preventing further interference with the assets – is a dependable option to prevent any further wrongdoing with regard to the trust. One method of enjoining is to request that the court grant a preliminary injunction, which is a court order issued at the beginning of a legal action that forbids the recipient from performing an act – in this case, using the trust funds – in order to maintain the current status until the court reaches a decision.
California Civil Procedure Code permits the court to issue an injunction before the final judgment. The court is also permitted to formally instruct the trustee on the terms of the trust, overriding the trustee’s decisions to date, removing the trustee, or appointing a temporary fiduciary in place of the fiduciary who acted in bad faith. In addition to an injunction, the bank holding the trust can restrict access and activity in the account, preventing the institution from releasing funds without authorization from a judge. The court will have to provide explicit direction to the bank in order for this to work.
Knowledgeable guidance from a California estate planning attorney
Whether you are a trustee, beneficiary, executor, or administrator, Daniel Leahy is prepared to treat your unique situation with sensitivity and attention to detail. At the Law Offices of Daniel Leahy in Oakland, we have the knowledge and experience to handle your trusts and estate issues. Call (510) 985-4151 or contact us online to schedule a free consultation.
