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What Happens to Beneficiaries Who Make Frivolous Account Objections?

Scott Grossman

Scott Grossman

Attorney

The Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307

As interested parties to a trust, beneficiaries have a legal right to receive an accounting of the trust assets. These beneficiaries can object to an accounting if they suspect that it contains errors. To do so, the beneficiary must contest the accounting with the appropriate court, such as the Superior Court in San Diego. If the contest is found to be in bad faith, the beneficiary may face repercussions. Keep on reading to find out what happens to beneficiaries who make frivolous account objections.

What Happens to Beneficiaries Who Make Frivolous Account Objections?

Beneficiaries are wise to exercise caution before pursuing a contest to a trustee’s accounting. It is crucial that an objection be legitimate and supported by facts. If not, the beneficiary may face repercussions, if the court finds the following:

  1. The court determines that the beneficiary’s contest of the trustee’s account was made in bad faith.
  2. The court determines that the beneficiary’s contest of the trustee’s account was without reasonable cause.

In these cases, the court may then order the following:

  1. The beneficiary may be liable for the compensation and costs incurred by the trustee in defending the accounting, including attorney’s fees.
  2. Any amount owed by the beneficiary may be taken from the beneficiary’s interest in the trust assets.
  3. If there is a deficiency in the amount owed by the beneficiary, he or she is personally liable.

When defending an objection to a trustee’s accounting, it is crucial that the trustee seek legal protection. At the Grossman Law Firm, we have helped many trustees and beneficiaries in estate litigation matters. We encourage you to read more about our many success stories on our website.

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