Q: In a simple trust where a parent leaves one beneficiary that later dies, does trustee have to account to the heirs?

A: In general, the trustee of a trust has a fiduciary duty to account to the beneficiaries of the trust, including the heirs of a deceased beneficiary. This duty to account means that the trustee must keep accurate records of the trust's financial transactions and provide regular reports to the beneficiaries.

In the case of a simple trust where a parent leaves one beneficiary who later dies, the trust would typically provide for a distribution to the beneficiary's heirs upon the beneficiary's death. In this situation, the trustee would have a duty to account to the heirs of the deceased beneficiary and provide them with information about the trust's financial transactions.

If the trustee is not providing the required accounting or is not fulfilling their fiduciary duties, the heirs may be able to take legal action to compel the trustee to account for the trust. This may involve filing a lawsuit or petitioning the court to remove the trustee and appoint a new trustee who will fulfill their duties.

It's important to note that the specific rules and procedures for demanding an accounting or taking legal action may vary depending on the terms of the trust, the laws of the state where the trust is located, and the specific circumstances of the case. If you are an heir of a deceased beneficiary in a trust and have concerns about the trustee's actions, it may be helpful to consult with a trust and estates attorney who can advise you on the best course of action.

Here are some relevant California statutes that govern trusts and the duties of trustees:

California Probate Code Section 16060: This section provides that a trustee has a duty to keep the beneficiaries of the trust reasonably informed about the trust and its administration.

California Probate Code Section 16061: This section requires a trustee to provide the beneficiaries of the trust with an accounting of the trust assets and liabilities, income, and expenses.

California Probate Code Section 16062: This section specifies the information that must be included in the trustee's accounting, including a description of the trust property, a statement of receipts and disbursements, and a statement of the trustee's compensation.

California Probate Code Section 17200: This section sets forth the procedures for challenging the actions of a trustee, including seeking an accounting or petitioning the court to remove the trustee.

California Probate Code Section 17203: This section provides that a beneficiary may petition the court for an order requiring the trustee to perform their duties or to take certain actions.

California Probate Code Section 15640: This section sets forth the standard of care that a trustee must exercise in managing and investing trust assets, including the duty to act as a prudent investor.

California Probate Code Section 16064: This section requires a trustee to provide a copy of the trust instrument to any beneficiary who requests it.

It's important to note that these are just a few of the relevant California statutes that may apply in a particular situation involving a trust and that the specific circumstances of the case will determine which statutes are most relevant. It may be helpful to consult with a trust and estates attorney for guidance on the specific laws that apply in your case.