Certified Estate Planning Specialists Supporting California Trustees and Beneficiaries
Trustees take on significant legal responsibilities. Whether you're planning your own trust or are serving as someone else's trustee, understanding these duties is crucial for protecting both the trust and its beneficiaries.
For more than 40 years, The Law Firm of Kavesh, Minor & Otis, Inc. has helped California families create and administer trusts. We focus exclusively on estate planning and trust administration, allowing us to develop comprehensive systems that protect both trustees and beneficiaries. Our depth of experience means we've encountered virtually every situation that might arise during trust administration, and we use this knowledge to help trustees avoid common pitfalls while fulfilling their duties.
What Is a Trustee?
A trustee serves as a fiduciary, meaning they have a legal duty to act in the best interests of the trust beneficiaries. This role requires putting aside personal interests and managing trust assets with care, skill, and prudent judgment.
Being a fiduciary means trustees must follow the terms outlined in the trust document and California law. A trustee who fails to meet these obligations may face legal consequences and personal liability.
What Are the Duties of California Trustees?
California Probate Code sections 16000-16015 establish specific duties that trustees must fulfill. These requirements create a framework for proper trust administration and beneficiary protection. Those duties include:
Duty of Loyalty
The trustee must administer the trust solely in the beneficiaries' interests. This includes keeping accurate records, avoiding conflicts of interest, and maintaining trust assets separately from personal property.
Duty of Impartiality
When a trust has multiple beneficiaries, the trustee must treat all beneficiaries fairly and not favor one over another. This applies to both current and remainder beneficiaries.
Duty to Follow Trust Terms
Trustees must administer the trust according to its written terms while complying with California law. This includes making appropriate distributions and investments as specified in the trust document.
Duty of Prudent Investment
Trustees must invest trust assets as a prudent investor would, considering the trust's purposes, terms, and distribution requirements. This includes diversifying investments unless specific circumstances make it imprudent to do so.
Duty to Control and Preserve Trust Property
Trustees must take reasonable steps to protect trust property from loss or damage. This includes securing assets, maintaining insurance, and defending against claims.
Duty to Keep Records
Detailed records of all trust transactions must be maintained, including income received, expenses paid, and assets bought or sold. These records protect both the trustee and beneficiaries.
Duty to Account
Beneficiaries must be provided with regular accounting, including detailed records of income, expenses, and distributions. This ensures transparency and helps prevent misunderstandings.
Duty to Keep Trust Property Separate
Trustees must keep their personal assets and trust assets separate. Trust property must be clearly identified. Commingling trust and personal assets is strictly prohibited.
Duty to Enforce Claims
Trustees must take reasonable steps to identify and collect trust assets, enforce claims that would benefit the trust, and defend against actions that could harm the trust.
Remedies if a Trustee Violates Their Fiduciary Duties
When trustees fail to meet their obligations, beneficiaries can seek several legal remedies:
- Removal and replacement of the trustee
- Financial compensation for losses caused by breach of duty
- Court supervision of trust administration
- Return of misappropriated assets
- Recovery of legal fees in successful actions against trustees
Three Types of Trusts
Each type of trust serves a specific purpose and offers different advantages depending on your goals and circumstances. Here are the main categories of trusts you should know:
- Revocable living trusts provide flexibility during the grantor's lifetime while ensuring smooth asset transfer after death.
- Irrevocable trusts create permanent arrangements that often provide tax benefits or asset protection.
- Special needs trusts help provide for disabled beneficiaries while preserving their eligibility for government benefits.
How The Law Firm of Kavesh, Minor & Otis, Inc. Protects Trustees and Beneficiaries
Since 1981, The Law Firm of Kavesh, Minor & Otis, Inc. has served as Southern California's trusted estate planning resource. Our commitment to quality and client service has made us one of the region's most respected estate planning firms, with more than 15,000 living trust plans created and over 4,000 trusts administered after death.
Certified Specialists in Estate Planning
All attorneys at our firm are California State Bar Certified Specialists in Estate Planning, Probate and Trust Law. This prestigious certification requires:
- Passing an additional bar examination
- Extensive peer review
- Ongoing education in estate planning
- Demonstrated expertise in trust and estate matters
This specialized knowledge ensures our clients receive the highest level of professional guidance for their trust matters.
Innovative Trust Solutions
Our commitment to excellence has led us to pioneer several important innovations in estate planning. We developed the Personal Asset TrustSM and the IRA Inheritance Trust®, along with comprehensive "Driver's Manuals" for clients, trustees, and beneficiaries. These proprietary tools have proven so effective that hundreds of attorneys nationwide have licensed our estate planning techniques and systems.
National Recognition and Trust Education
Major publications, including The Wall Street Journal, Consumer Reports magazine, and The Los Angeles Times, have recognized the firm's prowess. Our supervising attorney, Philip Kavesh, has been frequently interviewed on television and radio programs as an authority on estate planning matters.
We believe education is crucial for effective trust administration. Our support for trustees includes the following:
- Clear guidance on legal responsibilities
- Detailed documentation systems
- Regular updates on law changes
- Ongoing support throughout trust administration
Commitment to Peace of Mind
Understanding that serving as a trustee can feel overwhelming, we focus on providing clear communication and practical guidance for complex situations. Our approach emphasizes the prevention of common mistakes while protecting the interests of both trustees and beneficiaries. We regularly review trust administration procedures to ensure compliance with current laws and best practices.
Free Educational Seminars
We invite you to attend one of our comprehensive educational seminars, where you'll learn about trustee duties, trust administration, and our unique approach to estate planning. These sessions allow us to meet our team of specialists and get answers to your questions. Seminar attendees receive a complimentary consultation and can learn more about how our firm's extensive experience can benefit their specific situation.
