Q: Can a trustee use a quitclaim deed to claim real estate in a California family trust before notifying beneficiaries?
My aunt abused her caretaker/trustee position to exert undue influence on my grandparents to secretly create two amendments to their family trust just before they died. They were in their mid 90's, had dementia, were legally blind, and clearly did not understand what they signed. While they were alive, my aunt ignored all requests for copies of the wills/trust documents. Four months after they passed, she finally sent out copies of the wills, trust, and we found out about these amendments that drastically altered the original even split among their three children. (or grandchildren should a child predecease them) These amendments removed every beneficiary and directed the entirety of the trust to herself and her children. A quick search uncovered that only a month after their deaths, a quitclaim deed was used to transfer the house to my Aunt's name. Is this a legal or justified action to take before beneficiaries are notified and given a chance to contest the wills/trust?
A:
Under California law, a trustee is obligated to act in the best interest of all beneficiaries according to the terms set forth in the trust document. The trustee must adhere to the duties of notification, which include informing beneficiaries about the trust and any significant changes to it, such as amendments or revocations, especially when these changes affect the distribution of the trust assets.
Using a quitclaim deed to transfer real estate from a trust to an individual's name, especially under circumstances that raise concerns about undue influence and lack of capacity of the trustors, can be legally questionable. The law requires that any amendments to a trust, to be valid, must be made by the settlor(s) with full understanding and intent. If your grandparents were not in a condition to understand the changes being made, this could invalidate the amendments.
If you believe that the amendments were made under undue influence and your grandparents did not fully comprehend the changes due to their medical condition, it might be possible to contest the amendments and the actions taken by your aunt. Given the complexity and the serious allegations of abuse of a fiduciary position, it would be prudent to seek legal counsel to explore the options available for challenging the amendments and the subsequent transfer of property. An attorney can provide guidance on the steps necessary to contest the trust amendments and investigate the legality of the quitclaim deed transfer under these circumstances.
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