California Trust Litigation FAQs

Essentially, a trust is a legal arrangement where a trustor appoints a trustee to hold assets for a beneficiary. However, unlike a will, a trust becomes active as soon as you create it. Thus, it is common for disputes to occur between the parties involved in the trust.

Fortunately, there is a method for resolving these disputes. It is commonly referred to as California trust litigation. The main reasons for undergoing the trust litigation process include:

• The trustee not performing his or her duties under the trust
• The misappropriation of trust funds by the trustee
• Arguments about the interpretation of a trust
• Questions about the legitimacy of a trust formation

There is not a single statute of limitations that applies to all trust matters. There are different deadlines that apply to different claims. Additionally, these deadlines can change depending on the facts of your case.

For example, the statute of limitations for contesting a trust is 120 days after receiving notification from the trustee. This deadline is much less than the three years you have to sue a trustee for breach of trust.

Thus, you should consult with an attorney before making any decisions about filing deadlines. He or she can help you determine which statute of limitations applies to your specific case.

A breach of trust is when a trustee violates the legal obligation that the trustee owes to a beneficiary. There are many ways that a breach of trust can occur, including:

• When the trustee acts in bad faith
• When the trustee acts negligently
• When the trustee violates a legal obligation even though done in good faith

Contesting a trust occurs when there are concerns about the distribution provisions of a trust. For example, a named beneficiary may have concerns about what he or she will receive under the trust. The three main grounds for contesting a trust include:

• Fraud or undue influence
• Lack of capacity
• Legal provisions

To contest a trust in California, you must file a petition with the probate court. A California trust litigation attorney can help you draft a complaint. However, it is important to act fast. You only have 120 days to act after receiving notification from the trustee.

As a child or spouse, California law grants you certain rights when it comes to inheriting property or assets. However, a testator can choose to disinherit a child or spouse by removing them from the trust. In order to disinherit a spouse or child successfully, the testator must insert a clause that expressly disinherits the loved one. It may not be enough to simply omit them from the trust. The most common reasons a loved one may be disinherited from a trust include:

• Lack of a relationship
• The heir is well-situated financially
• The testator does not agree with the heir’s lifestyle
• The heir is considered too irresponsible

A fiduciary is a person or entity that has a responsibility to act in a person’s best interest. For example, a trustee has a fiduciary duty to act in the best interest of the trust beneficiaries. Thus, a breach of fiduciary duty occurs when the trustee acts in the best interest of themselves or another party.

Do you believe that your trustee has breached his or her fiduciary duty? If so, then you should begin the California trust litigation process. An attorney can help you file a petition for the trustee’s removal and replacement. Additionally, you may have the option of recovering the losses that resulted from the breach of trust.

A trustee must act with due regard for the rights of beneficiaries named in a trust. However, this does not always happen. If a trustee takes actions that do not promote the rights of a beneficiary, then this may constitute trustee bad faith.

Litigation for trustee bad faith can last for years or even decades. Thus, it is important to obtain experienced legal representation. Attorney Greg Aslanian has years of experience handling California trust litigation. He understands how to resolve disputes in an efficient and cost-effective manner.

Undue influence occurs when a person uses his or her position of power to exploit the trust and dependency of the trustor. This results in the trustor losing his or her ability to make decisions freely. The elderly are particularly vulnerable to undue influence. Often, the trustee is a family member or close friend. Thus, the trustee’s ability to influence the trustor could go unnoticed until the trust is administered.

However, it is expected that the trustee will have some degree of influence over the trustor. Thus, you will need evidence showing that the trustee’s level of influence meets the standard for undue influence. An attorney can help you conduct an investigation to find this evidence.