When you create a trust, one of the biggest benefits is laying out what gets distributed and when to beneficiaries, which gives you a layer of control and peace of mind about your plans. But it’s also key to think about who you name as a trustee, since this person is responsible for following through on those plans.
A trustee has a fiduciary duty to uphold the terms of the trust and to ensure timely distributions from the trust in accordance with its terms. Trustees are bound in California by the state probate code which requires them to distribute assets as soon as possible after the settlor’s death.
However, if your trustee is also your personal representative, that process of estate administration may involve other things associated with gathering assets, settling debts, and distributing any remaining debts to beneficiaries as specified in the trust.
California law does not outline a firm deadline for distribution but instead gives trustees who are managing assets within a trust to act in good faith and without any unnecessary delay. Personal representatives, on the other hand, will need to provide updates and close out someone’s estate within specific time periods. Multiple factors may impact distribution time including beneficiary disputes, any debts or liabilities that may be owed, the complexity of the trust itself, and any tax obligations.
If you’re a beneficiary who thinks a trustee has mismanaged funds or hasn’t followed the rules, you may need to speak with a trust and estate lawyer about your next options.
By working with an experienced Pasadena estate planning attorney, you can increase the chances that your loved ones will be able to receive these assets sooner rather than later. Working with the right lawyer can give you clarity on your estate planning intentions and reduce the possibility of conflicts or confusion in the future.
