Fom Trust Creation to Final Distribution
If you haven't gotten a copy of the trust, there might be other problems in getting your inheritance. After you finish reading this guide below, you will know if you need to begin trust litigation and what you can expect moving forward.
Guide to Trust LitigationFulfilling your loved one’s last wishes shouldn’t be a hurdle. Trust Litigation can be overwhelming, especially when navigating this intense legal process after a loved one has passed. From trust creation to final distribution we are here to help. At The Grossman Law Firm, we have over twenty-five years of experience assisting clients with trust litigation. We are committed to advising our clients of their rights, protecting their inheritances, and ensuring that your loved ones’ final wishes are honored. TGLF’s experienced expertise can give you the reassurance you need during this challenging time, helping you from just after trust creation to final distribution.
At TGLF, we focus on guiding clients through the complex trust litigation process with care and expertise. We understand that preparation is key to navigating any form of litigation confidently. To that end, we have developed a comprehensive checklist for trust litigation. This guide provides essential information from trust creation to final distribution as you prepare for trust litigation in California.
Understanding Trust Litigation
Trust litigation arises when there is a legal dispute over the terms or management of a trust. A trust document is a legal agreement where one party, the trustee, holds assets for the benefit of others, the beneficiaries. The trustee is responsible for managing the trust according to the terms set by the grantor, who created the trust, and the law. Ideally, trusts provide a smooth, private, and efficient way to manage and distribute a person’s assets after they pass away. More importantly, it avoids the lengthy probate process.
However, disputes can occur if the terms of the trust are unclear, if the trustee has mismanaged the trust, or if beneficiaries disagree on how the trust should be administered. These issues can quickly escalate into trust litigation.
California’s laws surrounding trusts are complex, with strict requirements regarding fiduciary duty, legal validity, and proper distribution of assets. When emotions run high following the loss of a loved one, trust disputes can feel overwhelming and confusing. Having the appropriate resources and legal counsel at your side can impact how effectively and swiftly these issues are resolved.
What to Know from Trust Creation to Final Distribution
This ten-point comprehensive guide is designed to help you navigate trust litigation, ensuring you feel prepared and in control from start to finish.
Understand the Purpose of the Trust: When a trust is established, typically as part of estate planning, the individual creating it—the grantor or settlor—places assets into the trust. It allows for managing those assets during their lifetime and distributing them after their death. As a beneficiary named in the trust document, your rights to the inheritance are limited until the grantor passes away. It’s essential to understand your potential interest in the trust early on.
Know When Your Rights Begin: Your rights as a beneficiary are triggered upon the death of the grantor. At that point, the trust becomes irrevocable. At this point, the trustee has a legal obligation to carry out the terms of the trust. Under California Probate Code section 16061.7, the trustee must send you a formal notice within 60 days of the grantor’s death, informing you that the trust is now irrevocable and that you have a right to request a copy of the trust.
Request and Review the Trust Document: You are entitled to a copy of the trust and any amendments to it. Once you receive it, please read it carefully. Pay close attention to your share of the trust, how distributions are made, and who is serving as the trustee. If anything appears confusing or something seems wrong or unexpected, you may want to speak with an attorney.
Monitor the Trustee's Conduct:
The trustee has fiduciary duties under California Probate Code sections 16000–16015, including duties of loyalty, impartiality, and prudent management. You are entitled to expect transparency, reasonable timelines, and full compliance with the trust’s terms and conditions. If the trustee delays distributions, withholds information, or acts with favoritism, it may be a breach of fiduciary duty. For more on breaching fiduciary responsibilities, review our article, “20 Ways Your Trustee Can Be Breaching Their Fiduciary Duties.”
Request an Accounting if Needed: Under Probate Code section 16062, you may have the right to receive a written accounting from the trustee at least annually or upon reasonable request.This report should outline the trust’s income, expenses, distributions, and remaining assets. If the trustee refuses to provide one, this may be grounds for concern.
Watch for Red Flags of Misconduct:
Common issues include unexplained distribution delays, missing or misused assets, the trustee’s self-dealing, or unexplained changes to the trust late in the grantor’s life. Such conduct may indicate undue influence, fraud, or breach of fiduciary duty, each of which could lead to trust litigation.
Act Within the Legal Timeline: Under Probate Code section 16061.8, you have 120 days from the date you receive the trustee’s formal notice to contest the trust in court. Missing this deadline may permanently bar your right to challenge the trust. If you believe the trust is invalid or was created under suspicious circumstances, seek legal counsel immediately.
Consult a Trust Litigation Attorney: Trust disputes are complex and emotionally charged. A qualified attorney can evaluate the situation, protect your interests, and help you navigate your rights under the California Probate Code. Whether the concern is undue influence, elder abuse, or trustee misconduct, legal guidance is essential.
Participate in Litigation or Mediation if Necessary: If a dispute arises, your case may proceed to court or mediation. Be prepared to provide documentation, participate in the discovery process, and attend hearings. While many cases settle before trial, litigation may be necessary to resolve wrongdoing or clarify your rights under the trust.
Final Distribution and Case Closure: Once disputes are resolved and the trustee has completed administration, you should receive your final distribution, along with a final accounting. Please review it carefully. The trust is closed when all obligations have been met and your role as a beneficiary concludes.
Trust litigation is simple when you have the proper support
Remember, trust litigation can be complex and time-consuming. That is why we recommend consulting with an experienced trust litigation attorney. The attorney can provide the guidance you need to navigate this process and protect your interests, giving you reassurance and hope for a successful outcome.
The longer you navigate the complex process of trust litigation in California, the more you will realize there is no one-size-fits-all solution to your problem. These litigation cases can be overwhelming and often leave you feeling distraught. At The Grossman Law Firm, we take pride in delivering exceptional legal support. And deeply committed to our clients. Tailoring our service to your needs. TGLF understands that every case is different. We are here to provide the understanding and support you need during this difficult time.
Next Steps
Do you have additional questions about your rights as a beneficiary and what to expect moving forward? If you’re interested in learning more about trust litigation and the process of removing a trustee, visit our website for a comprehensive Overview of California Trust Litigation. To schedule your free 30-minute legal assessment, please contact our office today at (888) 443-6590. We aim to ensure you feel informed and empowered in your trust litigation journey.