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By: Scott Grossman on September 15th, 2016

Six Questions to Ask if you Suspect Poor California Trustee Investments

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.

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.

If you are ready to start your case, then please give us a call or fill out our Get Help Now form.  If you want a comprehensive overview of California Probate, then click here. Should you have additional questions about trust litigation, then you will find plenty of useful information in our Learning Center.