How to Get Your Trustee to Distribute Your Inheritance
You have seen the trust, you know who the trustee is, the trustee knows you, everybody knows the terms of the trust, and still, the trustee will not distribute your inheritance to you. It may sound silly, even impossible, but this happens far more often than you may think.
Typically, a trust beneficiary initiates the process by requesting that the trustee make a distribution. And that’s a wise thing to do. If you believe you can resolve the problem through a simple conversation, then it’s best to try that first.
Unfortunately, some trustees will not respond to reasonable conversations or reasonable requests. Some trustees won’t even respond to a letter. Some trustees won’t respond no matter what you do. If that’s your situation, it is time to get a trust litigation attorney involved.
Why Won’t the Trustee Make a Distribution?
There are several reasons why a trustee may decline to make a distribution. One of the most common reasons is that the trustee misunderstands the trust. As a result, the trustee might make an incorrect decision based on their recollection rather than the trust’s provisions.
Sometimes, a trustee fails to make a distribution because they lack an understanding of their role, or they understand it but choose not to care. This means, even though they’ve a duty to act and administer the trust according to its terms, they still fail to make distributions even when the trust requires them to do so.
Some trustees may refuse to make distributions because they’ve committed an error, and they hope to cover it up by not making the distribution. The trustee may have mismanaged trust assets or, in some cases, wrongfully taken trust assets for their own use. If you’ve also requested information about the trust (for example, what assets were in the trust when the settlor died, how trust money has been spent, what assets are left in the trust, etcetera) and the trustee will not give you the information and will not make a distribution to you then it may be time to replace your trustee.
For more on whether your trustee is breaching your fiduciary duties, see “20 Ways Your Trustee Can Be Breaching Their Fiduciary Duties.”
How to Get Your Trustee to Distribute Your Inheritance:
If you’re going to obtain your distribution, you will likely need to file a petition with the probate court. The petition may be as straightforward as asking the probate court to compel a distribution. It’s possible the petition will also include a request to make the trustee account and, if necessary, to surcharge the trustee for any losses the beneficiaries have suffered due to the trustee. If the trustee is believed to have taken trust property too, then the petition will demand that the trustee return the property and, in some cases, pay double damages.
If you’ve taken reasonable steps and the trustee will not distribute your inheritance to you, then do something about it NOW. Bad situations that fester get worse with time. You can’t afford to allow somebody dishonest to remain in control of your inheritance.
Next Steps
By seeking the assistance of a probate attorney, you can navigate the complexities of the probate process with confidence and peace of mind. If you need more guidance in the probate process, check out our Overview of the California Probate Process.
If your case is in California and you’d like an honest opinion, fill out our Get Help Now form. Or contact our office today to schedule your free 30-minute phone consultation by calling us at (888) 443-6590.