As its name implies, a trust depends on trusting someone. A trustee is someone with an enormous amount of power over assets that are supposed to be managed on behalf of the beneficiaries. This is a big responsibility, and it can be a terrible problem if the trustee acts negligently.
If you were to ask the average person what elements are necessary to create a trust, many wouldn't know how to answer. The purposes of a trust can be several, but the means in which a trust is created are few. Here's a few things to understand about the elements of a trust. Knowing them can help you to spot if negligence is occurring.
Trusts, wills and estate plans are often made up of family members, once designated by the head of the family who may or may not be able to intervene in the day-to-day of these accounts. There could be many reasons for setting up these estate plans, trusts or other form of financial management. It could be because the originator of the estate had a certain plan for their remaining finances. It could be for the tax breaks.
Being a person who is affected by, or has an impact on, a trust, will or other estate plan can be a blessing or a burden. Oftentimes, there are multiple parties involved in the estate plan, will or trust administration. Not always do these people see eye-to-eye. It's possible that someone involved in the will, trust or estate plan does not do as intended.
Knowing what an executor does is important for families in California to understand. In addition, it is helpful for families to understand executor liability and what to do if an executor violates his or her fiduciary duties.