Which takes precedence, a will or a trust? The trust document covers only things that are put into the trust. The will covers anything that is not in trust, and not in a designated-beneficiary account like life insurance or retirement accounts.… Read More
351-year-old Will Causes Dispute The Associated Press recently ran an article by Rodrique Ngowi about a charitable trust fight in Massachusetts. It seems that a gentleman in the 17th Century donated his property for the benefit of local schoolchildren. Homes were built on the property and the rents, generally, went to local schools. This appears to have worked well for 351… Read More
Trust accounting and probate accounting. An accounting is a formal declaration of the trust (or estate, if it’s a probate accounting) assets and liabilities, including income and expenses, of a particular period of time. California probate code section 1601 et seq. tells us exactly what an accounting needs to contain. If it does not contain these items, an objection can be… Read More
How much should I be compensated as trustee? Typically, a trust won’t specify how much a trustee should be paid for their effort. And yet, unless wavied by settlor, or specifically established by settlor, successor trustee’s have a right to ‘reasonable compensation’. What is reasonable?… Read More
Six Duties and Liabilities of the Executor or Administrator in California Probate Administration There are six Duties and Liabilities of the personal representative (administrator or executor) under the California Probate Code. 1. Managing Trust Assets Be prudent; keep assets separate; earn income from the assets, if possible; observe legal restrictions on asset management. 2. Inventory of Estate Property Locate the property; determine its value; file inventory and appraisal… Read More
What is a ‘testamentary trust’? A ‘testamentary trust’ is a will that directs the creation of a trust, either explicitly or because the terms of the will can’t be carried out immediately. In California, beneficiaries under a trust are entitled to annual accountings from the trustee (usually the executor of the will) unless the terms of the will stated otherwise.… Read More
What if a beneficiary receives more than they should? One potential probate client question: If a payer (an executor under a will, or a trustee of a trust) overpays a beneficiary when a family member dies, does the payer have a right to ask for the money back? Absolutely! You do not have a right to keep funds given by mistake. Consult a local… Read More
