Can a Trustee Be a Beneficiary of a Trust

HESS-VERDON IS YOUR #1 SOUTHERN CALIFORNIA TRUST & ESTATE LAW FIRM

(DEEP BENCH COURT TIME)

Now, let’s go over a few roles in the trust administration process so the distribution of estate trust assets are timely to the beneficiaries.

First, the roles in the trust administration process are the following:

  1. Trustee: Or can be called “successor trustee.” There is always a Trustee and typically will be the settlor in the initial phases. Once the settlor/trustor dies, all trusts become irrevocable. The new successor trustee enters in to administrate the estate.
  2. Settlor/Grantor: The Settlor/Grantor is the person with the estate that wishes to protect assets via a legal instrument, i.e., a trust (see revocable and irrevocable trusts)
  3. Beneficiary: The beneficiary is the person who will derive the advantage from a trust, will, or insurance policy. In the insurance policy, you should have both “primary” and “contingent” beneficiaries.
  4. Heir: An “heir” is a person, which includes a surviving spouse, who is entitled to receive the estate via “intestate succession”. A beneficiary receives the death benefit but not through intestate succession.

With that said, at the passing of the settlor/grantor, all trusts straightaway convert to an irrevocable status. So, a Trustee can be the beneficiary and an heir of the estate.

Becoming a Trustee, however, has its advantages and disadvantages. The disadvantage could be the remaining beneficiaries can consider a potential “conflict of interest.” The advantage is more control of the estate while living up to the fiduciary responsibilities of a trustee. Therefore, if you are considering a trustee role, learn about the following:

  1. Trust Administration process
  2. Being Sued by a Beneficiary
  3. Trustee and a blended family

Your main objective is to eliminate the possibility of being sued because the beneficiaries see you unfit or that you have violated your legal responsibility. In this case, they could petition the probate court for the removal of a trustee. Are you a beneficiary? Learn more about contesting a trust.

 

Search Trust Litigation & Estate Planning Attorneys

Serving Trust Litigation: Throughout the state of California

Serving Counties: Orange County, CA. , Los Angeles County, Riverside, CA., San Diego, CA.

Serving Cities Nearby: Newport Beach, Huntington Beach, Irvine, Costa Mesa, Laguna Beach, Newport Coast, Corona Del Mar, Anaheim, San Juan Capistrano, San Clemente, Buena Park, Fullerton, Orange, Lake Forest, Laguna Hills, Garden Grove, Tustin, Yorba Linda, Fountain Valley, Dana Point, Rancho Santa Margarita, Ladera Ranch, Placentia, Laguna Woods, Aliso Viejo, Coto De Caza

 

Have Your Case Reviewed Today by a Hess-Verdon Attorney

If I’m a Trustee, do I get paid? (trustee fee)

Trustee compensation is possible, yet ambiguities lie within the courts. If you look at probate code https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB&sectionNum=15681. It states that a trustee is entitled “reasonable compensation.” Now, if you have breached any fiduciary duty, based on probate code: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB&sectionNum=16420. You could pay back any trustee compensation because of a breach of trust.

Now, what is reasonable compensation? (Here are some examples)

  • Private Trustees: Typically paid an hourly rate ($20.00 to $45.00 per hour)
  • Corporate Trustees: Typically paid 1% to 2% of the Trust Assets.
  • Professional Trustees: Due to their experience up an above a private trustee, a professional trustee compensation is an hourly fee of over $110.00+ per hour for their work.

What is “ordinary compensation” vs. “extraordinary compensation”?

The courts will typically distinguish between ordinary and extraordinary compensation. Here is a partial breakdown of the differences:

  • Ordinary compensation: Expected duties to be performed by a Trustee.
  • Extraordinary compensation: 
  • Handling litigation
  • Running a business
  • Managing commercial property

Within the two types of compensation, California law provides guidelines. They are the following:

  1. What is the value of the Trust assets
  2. Success in administering the trust
  3. Faithfulness in following the settlor/grantor wishes
  4. Were there any risks and responsibilities up to and above ordinary compensation
  5. Total time spend administering the trust.
  6. Local and state court rules regarding trustee administration.

Lastly, take into consideration this fact. If you are a trustee and you delegate your work to a real estate attorney, for example, your trustee fees may be reduced by the courts.

Trustee Removal

Are you a Trustee or Beneficiary where protection of the Trustors wishes are being challenged and causing family disputes?

Develop strategies on preempting a Trust dispute and discover What You Need to Know About the Trustee Removal Process

Hess Verdon has a deep bench and knows both sides of the equation to remove or suspend a Trustee or to safeguard the Trustee from a frivolous legal process. Hess-Verdon top litigators will help you stay on track!

 

Contact Us Green Can a Trustee be a Beneficiary for Revocable & Irrevocable Trusts

 or Call Now

(949) 706-7300

Beneficiary is attacking me

Attacked by a beneficiary who objects to how you, a Trustee, or Administrator, is handling an estate?

Prevent Trustees from Making Some Common Mistakes. 

Duties | Delays | Choices | Distributions

Timing on each one is critical to avoid litigation

Hess-Verdon has over 30 years of dealing with Beneficiary and trustee disputes. Let us review your situation. You’ll be glad you did. Contact us for a No Charge, No-Obligation Consultation.

Contact Us Green Can a Trustee be a Beneficiary for Revocable & Irrevocable Trusts

 or Call Now

(949) 706-7300

Contesting a Trust

 Are You Considering Contesting a Trust or the most recent amendment? Was there a capacity issue or undue influence?

Be Careful when contesting a trust and know the elements it takes to protect the trust assets. Reserve your rights before Statute of limitations happen!

Hess-Verdon works hard to resolve Trust and Estate issues and preserve the estate by minimizing costly litigation. Contact us for a No Charge, No-Obligation Consultation.

 

Contact Us Green Can a Trustee be a Beneficiary for Revocable & Irrevocable Trusts

 or Call Now

(949) 706-7300

Hess-Verdon Team of attorneys

See our Successful Reviews!

stars 5 Can a Trustee be a Beneficiary for Revocable & Irrevocable Trusts

“I have been working with this firm since 1994; you can’t beat a firm like this, that is so ethical and competent.”

Dixie Fisher

Client Since 1994

stars 5 Can a Trustee be a Beneficiary for Revocable & Irrevocable Trusts

“We’ve always felt comfortable sharing our concerns with Hess-Verdon & Associates and have felt confident that the job was well done and the concerns answered.”

Malou Cole

Client Since 2006

Get In Touch

Our Trust Litigation Attorneys Fight to Protect Your Inheritance.

 

stars 5 Can a Trustee be a Beneficiary for Revocable & Irrevocable Trusts

Truly exceptional law firm! They provided concise, decisive legal assistance during unanticipated events during estate proceedings. They made a bad situation better. Our family will always be grateful. There is no one I would rather have than Hess-Verdon & Associates representing my family.

Wade Shannon

Client Since 2014

stars 5 Can a Trustee be a Beneficiary for Revocable & Irrevocable Trusts

“Definitely a firm that will “fight to the finish.”

Frances Gruben

Client Since 2010

Call 1-888-318-4430 or Contact Us Below

After filling out the form, it will be immediately received by our firm.  We will call you very shortly!

grate Can a Trustee be a Beneficiary for Revocable & Irrevocable Trusts