Communicating with beneficiaries

CLRSKY

New Member
Jurisdiction
California
I recently had a parent resign as the trustee of a revocable living trust. She is the settlor. I am named in the trust as a successor trustee, and used the proper format to accept that position to manage the trust. Since the settlor is still alive, there is no distribution of assets, just management of them. I did decide to notify the one other beneficiary that I had assumed the role. I am assuming that even though the settlor is still alive, I am still required by law in CA to make the notification. Is that correct? Also, the beneficiary seemed to be disturbed by what my letter said. For example, when I noted that I intended to maintain complete transparency and would provide reasonable documentation of cash movements and such, they said that such a statement is "legal crap" and that I didn't need to say it because I never was approached about it. I feel like it is good to be open and up front about these things. Any comments about communicating with such persons? I don't like the idea of heated phone calls to try to exchange communication. I want to stay on good terms with the other beneficiary, but don't want to feel like I have to resort to phone calls like that, sort of debating in the back alley so to speak. Anyone have a comment? thx
 
I don't see anything wrong with being up front and straight in business dealings and there is everything right about being upstanding. Make sure you've carefully considered what you're saying and representing before issuing any statement. I try to not think too much about people's frustrations that might be taken out on me. Some of them will be unhappy merely because they have to pay for something. Such is life. Good luck.
 
I am assuming that even though the settlor is still alive, I am still required by law in CA to make the notification. Is that correct?

Your obligation to communicate with beneficiaries is only a modest one and typically passive in that you respond to requests instead of volunteering information unless that information is required by law.

Here is a guide to Trustee Responsibilities and Beneficiary Rights:

http://davidtate.us/files/A_Summary...ts_and_Elder_Law_Dave_Tate_Esq2._8.22.08_.pdf

CAUTION: It is ONLY a guide. It is not the LAW.

You would be wise to study the CA Trust Code (Division 9 of the CA Probate Code) at:

CALIFORNIA PROBATE CODE

Keep a link to it on your computer so you can refer to it and cite its provisions to others if necessary.

Bottom line: Your letter was likely the equivalent of poking a bear. Probably best to not volunteer anything in the future, just do your best in the administration of the trust and you should be OK.
 
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