Compelling Distributions from a Trust

Experienced Trust Distribution Attorneys

The trustee of a trust generally has discretion over how the trust is managed, but that discretion is not absolute. The trustee is required to abide by the terms of the trust document, and California Probate Code §17200 gives the court the power to intervene in trust administration. Court intervention may be necessary to compel trust distributions.

Compelling a trust distribution can be a sensitive issue, especially when the trustee and the beneficiaries seeking distribution are family members. Fox Law handles these matters with sensitivity and a commitment to honoring the terms of the trust.

When Can a Beneficiary Compel a Trust Distribution?

In California, a beneficiary can compel a distribution when the trustee is not fulfilling their duties under the terms of the trust. This may look like:

• Failure to make mandatory distributions: If the trust says the trustee “shall” make a distribution under certain conditions (such as annually or when a beneficiary reaches a certain age), but the trustee refuses to do so.
• Abuse of discretion: If the trustee, even one with “sole” discretion over the trust, refuses to make distributions and breaches their fiduciary duty or the settlor’s intent for the trust.
• Failure to act: If the trustee is simply not doing anything with regard to management of the trust, including making distributions.

Compelling a trust distribution may be necessary because of ongoing problems with trust management. In these cases, legal action may also include petitioning for removal of a trustee or compelling a trust accounting.

How to Compel a Trust Distribution

It’s important to follow the proper steps to get the trustee to make a distribution, including:

• Demand letter: A letter demanding a distribution in writing creates a “paper trail” showing that you tried to resolve the issue before resorting to court action.
• California Probate Code §17200 Petition: This petition officially asks the court to compel a distribution from the trust.
• Evidentiary hearing: The beneficiary or beneficiaries and trustee have the opportunity to present evidence in support of their positions.

The experienced trust distribution attorneys of Fox Law can help you at every step of the process, from drafting a clear, specific demand letter to completing the petition to gathering and presenting evidence in a persuasive way.