Does a trustee have to follow the trust?

In fact, the Trustee is required by California Trust law to (1) follow the terms of the Trust, and (2) follow the requirements of the California Probate Code for Trustee duties. That means everything a Trustee does must be done to benefit the Trust beneficiaries, not harm them.

What happens if a trustee does not follow the trust?

A trustee is responsible for following the instructions of a trust and properly distributing assets to the beneficiaries. If a trustee fails to follow through on their responsibilities, they can be held liable for fiduciary breaches. This can involve requesting a trust accounting and distribution through your attorney.

What are the responsibilities of a trustee of a trust?

The trustee acts as the legal owner of trust assets, and is responsible for handling any of the assets held in trust, tax filings for the trust, and distributing the assets according to the terms of the trust.

Can a trustee change the terms of a trust?

Generally, a successor trustee cannot change or amend a trust. Most trusts are initially managed by their creator or original trustee, while they are still alive and competent. But after their passing, a successor trustee must step in to take legal title to assets and administer the trust according to its terms.

Who makes sure a trust is followed?

The grantor (also called the settlor, trustor, creator, or trustmaker) is the person who creates the trust. Married couples who set up one trust together are co-grantors of their trust. Only the grantor(s) can make changes to the trust. The trustee manages the assets that are in the trust.

Can a trustee do whatever they want?

The trustee cannot do whatever they want. They must follow the trust document, and follow the California Probate Code. More than that, Trustees don’t get the benefits of the Trust. The Trustee, however, will not ever receive any of the Trust assets unless the Trustee is also a beneficiary.

How can a trustee be removed from a trust?

(a) A trustee may be removed in accordance with the trust instrument, by the court on its own motion, or on petition of a settlor, cotrustee, or beneficiary under Section 17200.

Can you be the trustee of your own trust?

You can be trustee of your own living trust. You can also name someone other than your spouse (including a professional) to be co-trustee with you. This would eliminate the time a successor trustee would need to become knowledgeable about your trust, its assets, and the needs and personalities of your beneficiaries.

How do you decline a trustee?

A person appointed as trustee does not have to accept the appointment. He or she can decline to serve, usually by written instrument. After appointment and acceptance, a trustee may resign, generally only by a written instrument. A trustee may also be removed according to the terms of the trust or by court action.

Can a beneficiary be a co-trustee of an irrevocable trust?

You may have set up an irrevocable trust, or you may be a beneficiary of an irrevocable trust. When the trust was set up, at least one trustee, or manager, was designated. More than one trustee may also have been appointed, either as a co-trustee or as a successor trustee.

What happens if a trustee does not follow the rules?

What happens if a trustee does not follow the rules of the trust? The trustee is legally obligated to follow the terms of the trust document, and if they don’t — like if they steal or mismanage funds — they can be removed from their position. A trust beneficiary can file a petition with the probate court for removal of a trustee.

Does the trustee have to account to the beneficiaries?

That means everything a Trustee does must be done to benefit the Trust beneficiaries, not harm them. The bottom line is that even though the beneficiaries do not participate directly in the management decisions of the Trust, the Trustee does have to account to the beneficiaries at the end of the Trust administration.

What is a trustee and how does it work?

Trusts change all that. A Trustee owns the assets in the sense that the Trustee has the sole right, and responsibility, to manage the Trust assets. That includes selling and buying assets. Since the Trustee is the legal owner, the Trustee can exercise his or her power unilaterally with no input required from the Trust beneficiaries.