During life, many California residents design an estate plan they believe will best serve their surviving family members upon their deaths. If a revocable trust is part of that plan, it will need to be administered after its grantor, or creator, passes away. If the trustee makes mistakes during this process, it could lead to trust litigation.
If a California resident lists numerous beneficiaries in a revocable living trust, it may take time to coordinate with all of them. Perhaps one of the biggest challenges to the successor trustee who takes over may be the beneficiaries. If they fail to agree or distrust the successor trustee, they will be diligently watching every move the trustee makes. Some even hire their own attorneys to ensure their rights and interests are protected.
If a dispute arises, it could delay administration and put the trustee under a microscope, especially if one beneficiary believes the trustee is favoring another beneficiary when it comes to distributions or some other matter. One or more beneficiaries may also contest the trust. As part of the administration process, the trustee is responsible for the assets. If the trustee fails to properly manage them, issues could arise.
Trust beneficiaries have certain rights. If it is believed that the successor trustee of a revocable living trust is not protecting those rights in administering the trust, resolving the issue could require trust litigation. In order to be sure that the trustee either has made a mistake or is otherwise mismanaging the administration process, it may be a good idea to consult with an attorney experienced in matters relating to California trusts.
Source: thebalance.com, “Settling a Revocable Living Trust After Trustmaker Dies”, Julie Garber, Accessed on May 12, 2018