California trustees must manage trust investments with an appropriate level of care and in the best interest of the beneficiaries. When you are the beneficiary of a trust and see trust assets being invested poorly, it can be very upsetting. However, just because an investment does not have a positive return does not necessarily mean that the trustee is breaching any duty.
Suspected Breach of Duty
The following is an overview of questions if you suspect that a trustee is making poor investments and is in breach of duties under California probate law:
- Is the trustee exercising reasonable caution when investing trust assets, or is he or she investing recklessly?
- Is the trustee investing trust assets in a manner that is consistent with the terms of the trust?
- Are the risk and return objectives of the trustee’s investments suited to this particular trust?
- Is the trustee diversifying the investment of the trust assets?
- Is the trustee paying too much money in fees relating to the investments?
- Is the trustee taking into consideration the tax consequences of the investments?
The answers to these questions will give you a better idea of whether you might have a potential claim against the trustee for breach of a duty relating to the management of trust assets. Paying close attention to the management of trust assets is important to ensure that your interests as a beneficiary are being protected.
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