Legal Question in Wills and Trusts in California

I am hoping that you can provide legal guidance regarding three outstanding issues regarding a dispute which has arisen regarding the administration of my father's estate and trust. The three questions all center around my rights as a beneficiary to review the underlying financial records of the estate and trust. My father's estate is governed by the CA probate code. My father passed away in November, 2010. Prior to his death, the trust he set up was supervised by the CA probate court. Following his death, the trustees successfully petitioned the court to have the court withdraw its oversight. The trustees have recently released the accounting for the estate for the one year period since my father passed away, that is, for the period 11/30/2010 to 10/31/2011. I have asked the trustees for the opportunity to review the underlying records (receipts, bills, etc.) At first the trustee told me that I would have to hire an auditor, send them a "$1400 retainer," and pay them $20.00 an hour to "facilitate" with the audit, and that no records would be released directly to me. After several exchanges of correspondence, the trustee then changed his position on this issue by saying I could review specifically requested supporting documentation, but that I could not review the records in their entirety. My questions are:

Question # 1:�Does a beneficiary have the right to review all of the financial records for an accounting period or does a trustee have the right to limit the beneficiary's access to the records?

My position is that the trustee has extremely limited authority under CA probate law to restrict my access to these records in this manner, for the following reasons. California Probate Code section 16061 reads:

�Except as provided in Section 16069, on reasonable request

by a beneficiary, the trustee shall report to the beneficiary by

providing requested information to the beneficiary relating to the

administration of the trust relevant to the beneficiary�s interest.�

The financial records for the trust is such a "core" interest of a beneficiary, a court would be extremely reluctant to limit a beneficiary's right to review the records. My father's estate was in no way overly complex. For example, he had a home, was cared for at home, bank accounts, and no business property at the time he died. So I do not believe it can be argued successfully that to allow a beneficiary full access to the records would be an "unreasonable" request due to the cost of providing these records to me for review.

Can you please tell me whether you agree with this assessment, and if possible provide a case law citation which supports this opinion?

Question # 2: Who should pay for the expense of providing the requested information?

I fully understand that it is the beneficiary's responsibility to pay for the cost of conducting the review of the records. But the question is: should the beneficiary requesting the information be expected to pay for the trustee's time and expense (photocopying) needed to comply with the beneficiary's request?

I believe that the expense of providing the requested information to the beneficiary is an expense which the trust should bear. This is again based upon CA probate code section 16061 (see above). My reasoning is that because the providing of requested information is a duty of the trustee under section 16061, the expense of fulfilling this duty is a legitimate trust expense, and should therefore be borne by the trust, not the beneficiary who requests the information.

Can you please tell me whether you agree with this opinion, and, if possible, provide a case law citation which supports this opinion?

Question #3: Does a beneficiary have a right to request information regarding prior accounting periods?

The trustees are currently stating that "no financial records prior to the most recent accounting period will be released without a court order." I am hoping that you can comment on a beneficiary's right to request accounting information for past accounting periods. There are two important considerations: (1) the prior accounting periods were reviewed by the probate court, and formally approved by the court, and (2) there is a clause in my father's trust which reads: "the beneficiary's written approval of the accounting shall be a complete protection of the trustee as to all matters and transactions stated or shown by the accounting. Failure to transmit to the trustee either (a) the written approval of such accounting, or (b) a written objection to the accounting, with reasons specified, within a period of ninety (90) days after a written request by the trustee for such approval shall constitute written approval of the guardian, conservator, or representative of such person entitled to the accounting"

My research is showing that under CA law, you have 3 years to contest an accounting, and that any provision in the trust document which limits this right is void as it is against public policy. Can you provide any guidance as to under what circumstances a beneficiary could request records for prior accounting periods?

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