How Long Does a Trustee Have to Distribute Assets?

How Long Does a Trustee Have to Distribute Assets?

Table of Contents

• Key Takeaways
• Understanding the Trustee’s Role
• The Role of the Trust Document
• Factors That Affect the Timeline
• Trustee’s Duty to Act Diligently
• Legal Remedies for Delay
• Consequences of Breaching Fiduciary Duty
• How The Grossman Law Firm Can Help
• Related Resources
• FAQ
• Call to Action

Key Takeaways

• Trustees are generally expected to distribute trust assets within 12–18 months for standard revocable trusts.
• Complex factors such as real estate, taxes, or disputes may delay the process.
• Trustees must follow the trust’s instructions and act in good faith to fulfill their fiduciary duties.
• Beneficiaries can take legal action if a trustee unreasonably delays distribution.
• The Grossman Law Firm helps beneficiaries enforce their rights and hold trustees accountable.

Understanding the Trustee’s Role

A trustee is the person or entity responsible for managing a trust and carrying out the grantor’s instructions. Their most important job is to distribute assets to beneficiaries according to the terms in the trust. Typically, this happens within 12 to 18 months, but timing varies depending on the trust’s complexity.

At The Grossman Law Firm, we help beneficiaries understand their rights, enforce fiduciary duties, and ensure timely distribution.

The Role of the Trust Document

The trust document outlines how and when the trustee should distribute assets. Some trusts call for immediate distribution, while others specify conditions that must be met first (such as a beneficiary reaching a certain age).

If the trustee fails to follow these instructions, beneficiaries may be able to bring a claim for breach of duty.

Factors That Affect the Timeline

Several key factors can influence the timeline:

• Trust Type: Revocable, irrevocable, and testamentary trusts have different structures and timelines.
• Complexity of Assets: Trusts holding real estate or business interests usually take longer to administer.
• Tax Issues: Filing estate taxes and waiting on IRS processing can delay distributions.
• Beneficiary Disputes: Legal challenges between beneficiaries can stall or complicate the process.
• Trustee Communication: Lack of transparency or failure to account often slows down trust administration.

Trustee’s Duty to Act Diligently

California law requires trustees to act promptly and in the best interest of beneficiaries. Even if no exact timeline is stated, delays without valid justification may be considered a breach of fiduciary duty.

Trustees are expected to:

• Maintain open communication with beneficiaries
• Document decisions and transactions
• Seek legal advice when needed

Legal Remedies for Delay

When a trustee fails to distribute assets reasonably, beneficiaries have options:

• Petition the Court: Ask the probate court to compel distribution.
• File for Trustee Removal: Seek to remove the trustee for failure to act.
• Request a Surcharge: Hold the trustee financially responsible for losses caused by delay.

These remedies may require help from a trust litigation attorney.

Consequences of Breaching Fiduciary Duty

Trustees who delay or mismanage distributions may face:

• Personal Liability: Reimbursement for losses to the trust
• Removal from Office: Court may appoint a new trustee
• Surcharge Orders: Trustee may have to pay damages
• Legal Fees: Trustees may be ordered to pay attorneys’ fees

Examples of breach include:

• Self-dealing
• Negligence
• Withholding distributions without cause

How The Grossman Law Firm Can Help

For over 20 years, The Grossman Law Firm has helped beneficiaries:

• Compel distribution of trust assets
• Remove uncooperative trustees
• Recover losses caused by fiduciary breach
• Understand and assert their inheritance rights

We focus exclusively on trust and probate litigation in California. If your trustee isn’t acting in your best interest, we can help.

Related Resources

• Overview of California Trust Litigation
• 20 Ways Your Trustee Can Be Breaching Their Fiduciary Duties
• What Are the Rights of a Trust Beneficiary?

FAQ

How long does a trustee have to distribute assets?

Typically 12–18 months, depending on trust complexity and other legal requirements.

Can beneficiaries force a trustee to distribute assets?

Yes, they can petition the court to compel action.

What happens if the trustee doesn’t distribute the assets?

The court may order distribution, remove the trustee, or impose a surcharge.

Can a trustee make a preliminary distribution?

Yes, if the trust allows and assets are available, partial distributions may be made.

Next Steps

If your trustee is dragging their feet or not communicating with you about distributions, don’t wait.

At The Grossman Law Firm, we help beneficiaries enforce their rights and ensure that trustees distribute assets as required.

Call (888) 443-6590 or fill out our Get Help Now form.

Our Intake Specialists can evaluate your case to assess your situation at no cost to you. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.