Legal Question in Wills and Trusts in California

Trust/Partnership

I am the trustee of my Father trust that includes 4 properties and a 50% interest in a partnership with my Uncle. The partnership serves no purpose except to rent out a parking lot. My Uncle would send half of the income to the trust each month, two years ago he stopped sending checks I contacted him and inquired as to why we had not received a check, he informed me that he did not approve of the way we were operating our trust. The economy has made it hard for us to meet our obligations and we have decided to sell the properties and distribute the trust. I am afraid if my Uncle continues to refuse to release the money owed to the trust that we could loose the property to foreclosure because of the real estate market now. My question is does my Uncle have the right to with hold income owed to the trust based on what he THINKS my Father would have wanted him to do? Those funds would allow us to meet our expenses until the property sells. And If we end up loosing the property to foreclosure because he refused to distribute the money owed to the trust could he be held financially responsible for our loss if he was aware of what would happen to the trust if he refused to distribute the money owed the trust


Asked on 12/13/08, 2:14 pm

2 Answers from Attorneys

Todd Stevenson Stevenson Law Office

Re: Trust/Partnership

You would need to look at the partnership agreement to determine exactly what your Uncle should and should not be doing with respect to the revenues from the parking lot.

If he is withholding money he should be paying to the trust, then holding him financially responsible for the losses that might cause is a possibility.

Please give my office a call if you want to discuss this matter further.

Read more
Answered on 12/13/08, 3:40 pm
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Trust/Partnership

You will be liable to the trust as trustee if you fail to protect trust income and pursue legal action against your uncle. Contact me directly.

Read more
Answered on 12/15/08, 7:33 pm


Related Questions & Answers

More Probate, Trusts, Wills & Estates questions and answers in California