By: Roger J. Buffington, Esq.
California living trust litigation often involves claims by beneficiaries against the presently-serving successor-trustee. As is well-known, a successor-trustee of a trust that has become irrevocable owes serious and strict fiduciary duties to the beneficiaries. Often even if the terms of the Trust do not entitle the beneficiaries to immediate distributions or financial benefit from the trust, beneficiaries are nonetheless entitled to receive reasonable information about the financial affairs and condition of the trust. For example, California Probate Code Section 16060 requires that “[t]he trustee has a duty to keep the beneficiaries of the trust reasonably informed of the trust and its administration.” [Cal. Prob. Code Section 16060]. Probate Code Section 16062 gives beneficiaries of trusts that have become irrevocable rights to an annual accounting. [Cal. Prob. Code Section 16062]. These requirements are well-conceived and a conscientious trustee understands his or her obligations in these contexts. Trustees are entitled to retain accountants and attorneys at the expense of the trust to help them fulfill these and other responsibilities, but ultimately it is the trustee’s duty to ensure that he or she does so.
This is all well and good. Unfortunately, it is not unheard of for beneficiaries to abuse their rights concerning information and so forth. Buffington Law Firm often represents extremely conscientious trustees who are besieged by beneficiaries making belligerent and excessive demands for information that far exceeds the requirements of the Probate Code. Sometimes it is hard not to conclude that these requests are motivated more by rancor or even malice than by a sincere need for information. These situations require skillful handling. Simply refusing informational requests can risk giving a beneficiary an excuse to bring a probate petition under Probate Code Sections 17200 and 17206, and perhaps later having a judge side with the beneficiaries. On the other hand, simply acceding to them may involve inordinate trustee time and professional fees. Most times, skillful counsel for a trustee in this situation can manage it between these two hazards in a reasonable way that minimizes expense. In extreme circumstances a beneficiary brings a trust petition, and counsel must be prepared to demonstrate to the Probate Court that the trustee has acted reasonably and that the beneficiary is acting unreasonably.
If you are involved in a situation involving a living trust in this context, Buffington Law Firm invites you to contact us for a free legal consultation. All consultations are with an actual experienced trust litigation attorney and are completely confidential and protected by attorney-client privilege. And there is never any obligation.