818.707.8200
Google Plus Linked In Twitter
Agoura Hills estate planning, probate & trust attorneys

I'm a Trustee? What happens if I don't send a §16061.7 notice?

If the Trustee of a California Trust fails to send the required Notification by Trustee (also called a California Probate Code §16061.7 Notice), or fails to properly serve the Notice on its intended recipients, then the normal 120-day statute of limitations for Trust contests does NOT run.

Instead, potential claimants might have years (and not just 120-days under the statute) to file a lawsuit contesting the validity of the Trust.

This could place the Trustee (who owes a fiduciary obligation to the Beneficiaries) in a tight spot. Trustees typically don't like to distribute Trust funds to the Beneficiaries unless the Trustee can be reasonably assured he or she won't need the money to defend a lawsuit, or pay creditors, taxes, legal fees, etc. But eventually the Beneficiaries will demand their inheritance.

"Over-Notify"

In our law practice we recommend that the Trustee "over-notify" the interested parties. In other words, send the §116061.7 Notice. Sooner rather than later.

  • If there is a question about entitlement to notice (for example, if the Trustee isn't sure that a potential heir is actually related to the decedent), we usually recommend the Trustee still send the Notice.
  • If the Trustee doesn't know which address to mail the notice to (for example, if a Beneficiary recently moved), we usually recommend mailing it to both addresses.

Better to "over-notify" than to have a potential liability hanging over the Trust for years to come. Besides, if there is going to be a lawsuit, better to deal with it now, than be caught off guard after the Trustee distributes all the money to the Beneficiaries.

What next?

Did you receive a §16061.7 Notice, and you're not sure what to do with it? Call us (805.494.4569) for a consultation.

[For information only. May NOT be relied upon as legal advice.]

Comments

No Comments Posted
Agoura Hills estate planning, probate & trust attorneys

Agoura Hills Estate Planning Attorney | Contact Us | Site Map | Privacy Policy

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

Stephens Law Group - Agoura Hills Estate Planning Attorney
Located at 30200 Agoura Road, Suite 260 Agoura Hills, CA 91301. View Map
Phone: (818) 707-8200
Website:
818.707.8200
Google Plus Linked In Twitter