Legal Question in Wills and Trusts in California

The answer to the question requires a full assessment of the situation. It may be possible retain the money in the trust and manage it for the beneficiary -- and it may not. Much depends on the trust's language. A conservatorship may be necessary for the estate of the beneficiary, if the lack of competency is severe. Or, the beneficiary can simply hire someone to manage his money for him, much like most people do.

Mr. Perry is exactly right. First step is to look to the terms of the trust to see how much leeway the trustee has to control the funds. If the control given the trustee is not enough, the next step is to try to persuade the beneficiary to allow someone, whether the trustee or a professional fiduciary, to manage the income. If that is not an option or is unsuccessful then the trustee would need to evaluate whether the mental incapacity is sufficient to seek a court order appointing an involuntary conservator over the beneficiary's assets.

the trustee may want to consider application for the appointment of a conservator for the beneficiary who would seek an order allowing for the preparation of a specil needs trust to take control of the beneficary proceeds, so as not to disturb any government benefits beneficiary may be receiving, if that is the case. I agree with previous answers of counsel.