In some cases, yes.
You do not necessarily need a fully vested right to receive trust property before you can take legal action involving a California trust. Under California Probate Code § 24, a trust beneficiary can include someone with a present or future interest, whether that interest is vested or contingent. Vested means they have an absolute, unconditional right to property.
That means the real question is often not simply whether your interest has vested. It is whether California law gives you standing to bring the particular claim you are considering.
At The Grossman Law Firm, Attorney Scott Grossman represents beneficiaries throughout California in trust litigation involving trustee misconduct, withheld information, disputed beneficiary rights, and other trust administration problems.
Table of Contents
Key Takeaways
- California law recognizes both vested and contingent trust beneficiaries.
- A contingent beneficiary may have standing to petition the probate court in some circumstances.
- The extent of your rights will depend on whether the trust is revocable, the terms of the trust, and the kind of claim you intend to make.
- Beneficiary rights may be limited while a revocable trust remains under the control of a competent settlor.
- A trust litigation attorney should be able to review the trust and determine whether you have a legal basis to take action.
What Is a Contingent Beneficiary in California?
A contingent beneficiary has an interest in a trust that depends on a future event.
For example, a trust might provide that:
- A child receives trust property only after turning 30.
- A grandchild inherits only if another beneficiary dies first.
- A beneficiary receives assets only after a particular event occurs.
- One beneficiary takes property only if another beneficiary cannot receive it.
The important point is that a contingent interest is still an interest.
California Probate Code defines a trust beneficiary as someone who has a present or future interest, whether vested or contingent.
Can a Contingent Beneficiary Sue a Trustee
Potentially.
Probate Code section 17200 usually enables a trustee or a beneficiary to ask the probate court about the internal matters of a trust; since California’s definition of “beneficiary” encompasses contingent beneficiaries, a contingent interest does not automatically bar a person from obtaining court relief.
The California Supreme Court has clearly acknowledged that a contingent beneficiary may bring an action before the court, provided the limitations that apply to revocable trusts are considered.
But standing still depends on the facts and the type of claim.
An attorney may need to determine:
- What interest does the trust give you?
- Is your interest current or dependent on a future event?
- Is the trust revocable or irrevocable?
- Is the settlor still alive?
- Who currently holds the power to revoke the trust?
- What did the trustee allegedly do wrong?
- Did the trustee’s actions affect your interest?
Those details can change whether you can bring a particular petition.
What If the Trust Is Still Revocable?
This is an important limitation.
When a trust remains revocable, and a competent person holds the power to revoke it, Probate Code § 15800 generally gives that person, not the beneficiaries, the rights afforded to beneficiaries under California trust law. The trustee’s duties are also generally owed to the person holding the power to revoke.
For example, suppose your mother has a revocable living trust and names you as the beneficiary. While she remains alive, competent, and able to revoke the trust, your ability to challenge the trustee may be limited.
That can change after the trust becomes irrevocable.
California courts have recognized that after the settlor dies, beneficiaries may have standing to pursue claims involving breaches that occurred while the trust was still revocable if those breaches harmed their interests.
What If You Are Not Sure Whether You Have Standing?
Suppose Rachel’s grandfather created a trust naming Rachel to inherit if her mother died before the trust property was distributed.
When Rachel’s mother passes, the trustee refuses to provide Rachel with information and claims Rachel has “no rights” because she was only a contingent beneficiary.
That conclusion may be wrong.
Rachel’s interest and ability to act depend on the trust language, whether the contingency has occurred, the trust’s current status, and what the trustee is doing.
This is where the trust’s wording matters.
Attorney Scott Grossman and his team of intake specialists can review the trust terms and the trustee’s actions to determine whether you meet the conditions to ask the probate court for relief.
What Can a Beneficiary Ask the Court to Do?
Probate Code section 17200 allows beneficiaries, in certain circumstances, to ask the court to address matters related to the administration of the trust, such as questions about the trustee’s duties, the trustee’s rights under the trust, information about the trust, and other internal matters.
The appropriate remedy depends on the problem.
A beneficiary may need help when a trustee:
- Refuses to provide trust information
- Withholds a required distribution
- Misuses trust property
- Favors one beneficiary over another improperly
- Refuses to recognize a beneficiary’s interest
Just because your interest was once contingent doesn’t mean the trustee can ignore your rights.
FAQ
Do I have to be a vested beneficiary to sue a trustee in California?
Not necessarily. California Probate Code § 24 includes beneficiaries with vested or contingent interests. Whether you can bring a particular claim depends on the trust and the circumstances.
Can a future beneficiary petition the probate court?
Sometimes. A future or contingent beneficiary may qualify as a beneficiary under California law and may have standing under Probate Code § 17200, subject to other limitations.
Do I have rights if the settlor is still alive?
Your rights may be limited if the trust remains revocable and the person holding the power to revoke it is competent. Probate Code § 15800 generally places beneficiary rights and the trustee’s duties with that person during that period.
Related Resources
How The Grossman Law Firm Can Help
Don’t assume your rights don’t matter just because someone says your interest is “not vested.”
Whether you can take action against a trustee depends on the trust language, the nature of your interest, and what the trustee has done.
At The Grossman Law Firm, we help beneficiaries and heirs throughout California enforce their rights in probate and trust litigation.
Please call (888) 443-6590 or complete our Get Help Now form to take the next step in protecting your inheritance.
Our Intake Specialists can evaluate your case and assess your situation at no cost. We will schedule qualifying cases for a Free Phone Consultation with Attorney Scott Grossman.
Originally Published: June 18, 2018