What are the different types of Trustees in California?
There are professional Trustees who are licensed by the state of California, but do not work for a larger company. And then there are corporate Trustees, these are banks and corporate Trust companies that act as Trustees. We will refer to these three groups of Trustees as private Trustees, professional Trustees, and corporate Trustees.
What is a breach of trust in a California probate case?
Under the California Probate Code section 16420 (a) (7), the court can reduce or deny compensation of the Trustee if the Trustee commits a breach of Trust. If the Trustee causes a loss of $10,000, and the Trustee is requesting Trustee’s fees of $10,000, the court can deny that fee request to make up for the harm caused to the Trust.
What is reasonable compensation for a California trustee?
Most Trust documents do not specify an amount for Trustee compensation. And even the California Probate Code states that Trustee compensation must be “reasonable” ( see Section 15681 ), but what is reasonable? First, let’s consider situations where a Trustee is not entitled to compensation at all because that may be the easier question.
What are the powers of a trustee in California Probate Code?
2009 California Probate Code – Section 16220-16249 :: Article 2. Specific Powers Of Trustees. 16220. The trustee has the power to collect, hold, and retain trust property received from a settlor or any other person until, in the judgment of the trustee, disposition of the property should be made.
Can a trustee claim a fee in California trust litigation?
While California Rule of Court 7.776 lists factors a court may consider in reviewing trustee compensation, the trustee and the beneficiaries are likely to apply those factors differently. Accordingly, fee disputes are common in California trust litigation. Here we’ll discuss best practices for a trustee with respect to claiming a fee.
What is a “reasonable compensation” for a California trustee?
Most often however, trusts terms are often simply state that a trustee is entitled to “reasonable compensation,” as stated by California Probate Code section 15681. When determining the trustee fee, Rule 7.776 of the California Rules of Court specify eight factors to be taken into consideration:
How can I terminate a trust in California?
How can you terminate a trust in California? At some point during trust administration, it will be necessary for the trustee to finish up the process and then terminate the trust.
Who is the trustee of an irrevocable trust in California?
The role of the trustee under California trust laws. The trustee of an irrevocable trust is the individual(s) or institution(s) identified by the grantor to manage and administer the trust. In other words, the trustee is expected to take all steps necessary to ensure the provisions of the trust are complied with.
Can a California probate court deny a trustee compensation?
First, let’s consider situations where a Trustee is not entitled to compensation at all because that may be the easier question. Under the California Probate Code section 16420 (a) (7), the court can reduce or deny compensation of the Trustee if the Trustee commits a breach of Trust.