How To Sue For Trust Fund Money

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Suing for Trustee Mismanagement

image of broken glass

There are times when you know something has gone wrong with your Trust assistants. Perhaps the Trustee is not making proper Trust investments, is not managing Trust assets properly, or is outright stealing from the Trust. At times, the harm acquired by a Trustee can be less obvious, such as living in a home endemic past the Trust without paying rent. Equally a beneficiary, you have the right to seek amercement, or other relief, confronting the Trustee. But you have to know how to sue.

There are ii ways in which to seek reimbursement for the harms and losses acquired by a bad Trustee. First, is to simply file a petition with the probate court (under section 17200) request the court to impose a surcharge against the Trustee. In legal jargon, this is referred to as a petition for redress for alienation of Trust. Redress simply means to "set up right." We need the Trustee to repair the damage. If you know what the damage is, and the corporeality of damage caused, you tin can go right to the main consequence.

For example, if a Trustee lost $100,000 by investing Trust money in pork bellies, then yous already know the amount of harm. You lot can file your petition under section 17200 with the California probate courtroom, and ask the court to issue an lodge that the Trustee must pay back $100,000 to the Trust from the Trustee'southward own pocket.

Demanding Information From the Trustee

In some cases, even so, you lot may not know the full extent of the damage. Since the Trustee controls all of the Trust's financial information, you may not even know what has occurred, or how much loss has been sustained by the Trust. In that example, y'all must start by demanding data from the Trustee. You lot need to receive all of the relevant financial information from the Trust, such as bank statements, financial statements, escrow closing statements, reports from property managers, and all other relevant information.

Additionally, y'all should asking a Trust accounting. The Trust accounting will show the assets the Trustee started with, the income received, the expenses paid, any distributions to beneficiaries, the gains or losses from sale of uppercase assets, and the avails on manus at the end of the accounting period. This is vital data that can set the phase for your lawsuit against the Trustee. Further, once you have a Trust accounting, so you can amendment the back-up financial statements to determine if the bookkeeping is accurate or non.

In one case you have this information, then yous should accept sufficient evidence to ask the court to hold the Trustee liable for all harms and losses acquired by Trustee mismanagement. Suing for Trustee mismanagement is never easy, only the sooner you become started by compiling necessary data, the sooner yous will reach your desired issue of belongings the Trustee answerable for their actions.

Source: https://www.aldavlaw.com/blog/broken-how-do-you-sue-for-trustee-mismanagement/

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