Today’s topics of discussion:
LIVING TRUSTS * * * * * *

What is the Successor Trustee’s duty after someone dies?

How does the Trustee know what to do?

Is there anything legal that must be done?

NOTE – most Successor Trustees think they can just pay all the money out to beneficiaries without notices or an accounting or anything. NOT SO

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WHAT IF THE TRUSTEE IS DOING SOMETHING WRONG OR SUSPICIOUS? Or NOTHING at all?

WHO watches to see if Trustee does their job? The beneficiaries or their guardians if the beneficiaries are minors.
1 – Can I request a status report? Yes. In California, you may ask the Trustee for an accounting of the trust estate. How often you can get an accounting depends what the trust document provides for. It might require annual accounting (typical) or more frequent. You have to be careful asking for an accounting too often or you might end up paying for the fees to have it prepared.

2 – What if he REFUSES to give me a report or status? If the Trustee refuses a reasonable request to provide an accounting, the Trustee can be removed from the post of Trustee and could be charged for any damages to the trust estate.

3 – Can I get a full accounting? Yes. Upon reasonable request.

4 – What is an “accounting”? An accounting is a report of trust assets, income, and expenses showing all activity in the trust for the accounting period.

5 – Who is responsible to watch the Trustee and make sure he is doing his job correctly? The beneficiaries or their guardians.

6 – Is it a good idea to watch what the Trustee is doing? 100% yes. Do not let too much time pass before asking what is going on.

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Question: Can’t mom just tell us all what she wants and let us follow her wishes?

Answer: The statement “that is what my mom wanted” is powerless – because she is not here to confirm or deny the statement. It seems like you could, but legally and practically, it never seems to work out that way.

Question: Is an oral promise to give away an asset good enough? or good at all?

Answer: It is not legally binding. Might be of some help in guiding distribution of the little stuff.

Question: What if dad changes his Trust right before he passes away? Can it be valid?

Answer: Yes if we determined that he had capacity and really wanted to do it.

Question: What if dad wants to change his Trust but he has become forgetful? Can he still change the Trust?

Answer: I depends how “forgetful” he is. He can make changes if he understands what he wants and can articulate it. He must be able to explain it independently.