The Duty of a Trustee in California
A Trustee in the state of California has an obligation to uphold. Anything that could affect the Trust comes into play. If a debt is owed that should be paid into the Trust, the Trustee should work to ensure that debt is paid. If a lawsuit is brought against the Trust, the Trustee is the one who should work to defend it.
What if the Beneficiary Sues the Trustee?
This may seem like a conflict. After all, the Trustee is likely to use money from the Trust to defend himself. But isn’t that money supposed to be for the beneficiary anyway? In this way, beneficiary lawsuits often backfire. Plus, the courts don’t require a surcharge from the Trustee, even if the funds of the Trust are being wrongly used to defend himself.
This means being very careful when selecting a Trustee. You need to choose someone who will do right by the Trust and the beneficiary. You also have to warn beneficiaries of the possible consequences of taking legal action against a Trustee. Prospective Trustees should, in turn, be careful not to get involved without knowing what defending the Trust may entail.
Don’t Try to Navigate a Trusteeship Alone
In all of these matters, Petrov Law Firm can help you make good decisions. You can contact us today at our San Diego or Chula Vista locations by using the form on our contact page. Our estate planning professionals can help you ensure that your money ends up where it is supposed to be, and that your wishes are carried out as you have directed.
