Can a trustee evict a beneficiary?
Asked by: Prof. Karolann Luettgen | Last update: April 29, 2025Score: 4.6/5 (5 votes)
In most cases, a trustee is the legal owner of the real property and can evict a tenant, including a beneficiary.
Who holds the real power in a trust, the trustee or the beneficiary?
This is a fundamental concept of trust law: the separation of legal and equitable title. In other words, while the trustee has the legal authority to manage and control the assets, they do so not for their own benefit, but for the beneficiaries.
What rights does a beneficiary have over a trustee?
Beneficiaries may change the trustee if they believe there has been gross misconduct. All beneficiaries can petition the court to have the trustee suspended, surcharged for losses incurred, and replaced with another person. This process can be complex and often requires the help of an experienced lawyer.
Who has the power to remove a beneficiary?
Trustees generally do not have the power to change the beneficiary of a trust. The right to add and remove beneficiaries is a power reserved for the settlor of the trust; when the grantor dies, their trust will usually become irrevocable.
Can a trustee withhold money from a beneficiary?
As previously mentioned, trustees generally cannot withhold money from a beneficiary for no reason or indefinitely. Similarly, trustees cannot withdraw money from a trust to benefit themselves, even if the trustee is also a beneficiary.
Can a Trustee Evict a Beneficiary or Co-Trustee From Trust Property?
Can a trustee ignore a beneficiary?
A trustee may withhold money or assets from a beneficiary if they must focus on other responsibilities surrounding the estate. For example, if the estate becomes subject to a tax audit or litigation arises, a trustee may refuse to give beneficiaries their share of the assets until these issues are resolved.
Can a trustee take all the money?
Ultimately, trustees can only withdraw money from a trust account for specific expenses within certain limitations. Their duties require them to comply with the grantor's wishes. If they breach their fiduciary duties, they will be removed as the trustee and face a surcharge for compensatory damages.
Can executor screw over beneficiary?
Executors are bound to the terms of the will, which means they are not permitted to change beneficiaries. The beneficiaries who were named by the decedent will remain beneficiaries so long as the portions of the will in which they appear are not invalidated through a successful will contest.
Can a trustee sell property without all beneficiaries approving?
Under California Probate Law, a trustee generally has the authority to sell trust assets without obtaining approval from all beneficiaries. More importantly, it is recommended that trustees seek consensus and secure written agreements. This will help alleviate disputes or legal challenges.
Can a trustee sue a beneficiary?
Yes, a trustee can sue a beneficiary for harassment if the beneficiary's actions threaten the trust's integrity or the trustee's ability to perform their duties.
Does a trustee have to communicate with beneficiaries?
From California Education of the Bar (CEB), Trust Administration: The trustee has an affirmative duty to keep the beneficiaries of a trust reasonably informed of the trust and its administration. Prob C §16060.
How much does it cost to contest a trust?
Depending on the complexity of the case, it may cost anywhere from a few thousand dollars to $100,000 or more to dispute the terms of a trust.
Can a beneficiary of a trust ask to see bank statements?
As a beneficiary you are entitled to information regarding the trust assets and the status of the trust administration from the trustee. You are entitled to bank statements, receipts, invoices and any other information related to the trust. Be sure to ask for information in writing.
What cannot a trustee do?
(i) A trustee cannot delegate their role to anyone else. (ii) A trustee cannot exercise their powers where their self-interest conflicts with their duties. (iii) A trustee cannot personally profit from their dealings with the trust property.
Can a trustee steal money from a trust?
Yes, when a trustee steals from a trust, they are in effect also stealing from beneficiaries. This is because beneficiaries are supposed to ultimately inherit all the assets contained in the trust.
How long does it take to receive inheritance from a trust?
The California probate code outlines the responsibilities of trustees in managing and fairly distributing assets to beneficiaries. Typically, a revocable trust with clear provisions for outright distribution might conclude within 12 to 18 months.
What power does a trustee have over an estate?
As a fiduciary, a trustee must protect the trust's investments and act in the best interests of the beneficiaries. They must prepare and maintain trust accounting records and prepare tax-related forms, providing this information to the beneficiaries at their request.
Do all beneficiaries have to agree to sell a property?
In some cases, the executor can sell the house without getting the sign-off from all the heirs. For example, in California, if the executor can sell the property for at least 90 percent of its appraised value, they may have the authority to move forward with the sale.
What happens if a trustee does not distribute?
Under California law, when a trustee improperly manages, distributes, or fails to distribute the trust's assets properly, the trustee can be held personally liable for violating any of the terms of the trust, or for violating California law.
Can a beneficiary be evicted?
The trustee must send a written notice to the beneficiary to vacate the real property. Under California law, if the beneficiary has been in possession of the property for less than a year, then a 30-day notice is sufficient. If they've been in possession for more than one year, then a 60-day notice is required.
What overrides a beneficiary?
An executor can override the wishes of these beneficiaries due to their legal duty. However, the beneficiary of a Will is very different than an individual named in a beneficiary designation of an asset held by a financial company.
Does the executor of a will have the final say?
The executor has authority from the county probate court to act in this role, but that doesn't necessarily mean that the executor has the final say on all decisions regarding the estate. In fact, they're instead tasked with simply following the guidelines set forth by the will and other estate planning documents.
Can a trustee not give money to a beneficiary?
When the trustee has discretionary authority, they can be within their rights to refuse to pay a beneficiary. There are situations when the trustee does not have grounds to refuse to pay a beneficiary. If a mandatory provision promises trust funds to a beneficiary then the trustee must comply.
Can a trustee go to jail?
The answer is yes, but this is a rare occurrence. Technically, a trustee can go to jail for theft if convicted of a criminal offense, but when a beneficiary sues a trustee for sealing from a trust, the matter is typically handled as a civil matter in probate court rather than a criminal matter in criminal court.
What is an example of trustee misconduct?
Examples of executor misconduct and trustee misconduct include: Failing to provide accountings to beneficiaries. Favoring one beneficiary over another. Misappropriating or misusing estate or trust assets for personal gain.