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RayAnswers
RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 39568
Experience:  Texas lawyer for 30 years in Estate law
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I am trustee of CA trust that does not have money left after

Customer Question

I am trustee of CA trust that does not have money left after bills and taxes to pay beneficiaries. Please cite callifornia civil code or trust law number that indicates that beneficiaries are not paid if liabilities exceed assets
Submitted: 1 year ago.
Category: Estate Law
Expert:  RayAnswers replied 1 year ago.

Hi and welcome to JA. I am Ray and will be the

expert helping you tonight.

Expert:  RayAnswers replied 1 year ago.

Here the trustee would be expected to motion

the court to terminate teh trust.

Expert:  RayAnswers replied 1 year ago.

15408. (a) On petition by a trustee or beneficiary, if the courtdetermines that the fair market value of the principal of a trust hasbecome so low in relation to the cost of administration thatcontinuation of the trust under its existing terms will defeat orsubstantially impair the accomplishment of its purposes, the courtmay, in its discretion and in a manner that conforms as nearly aspossible to the intention of the settlor, order any of the following: (1) Termination of the trust. (2) Modification of the trust. (3) Appointment of a new trustee.

Expert:  RayAnswers replied 1 year ago.

It is clear under the Trust Code Section

to motion the court and seek to terminate

the trust as it is insolvent and no longer

benefits the beneficiaries and should be

terminated here by law.

Expert:  RayAnswers replied 1 year ago.

The Trustee once this is done is released from his duties under

the Trust and would complete a final report to the court and it ends

at that point.The court would find that good cause exists as you present to

terminate the trust here under the section above.

I appreciate the chance to help you tonight.Thanks again.

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