Sacramento, CA asked in Estate Planning, Real Estate Law and Probate for California

Q: If there is a will & trust with money for estate, shouldn't the executor use that money instead of his own creditcards??

Executor of my mom's trust, which I am beneficiary to, has been using his credit cards for expenses. And detailing and charging the trust of all the interest charges be accrued. Can I somehow dispute these charges and get back into the trust??

2 Lawyer Answers
James L. Arrasmith
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Answered
  • Estate Planning Lawyer
  • Sacramento, CA
  • Licensed in California

A: In California, the executor, also known as the trustee in the context of a trust, is typically expected to pay for trust-related expenses directly from the trust's assets rather than using personal funds. This is to ensure that all transactions are transparent and the trust’s assets are used appropriately according to the trust documents and California law.

If the executor is using personal credit cards for trust expenses and charging the interest to the trust, this could be problematic, especially if not explicitly allowed by the trust document or by court approval. You have the right to question these actions and request a detailed accounting from the trustee to understand how the trust's funds are being used. If the expenses and interest charges seem unjustified or not in the best interest of the beneficiaries, they might be disputed.

You may consider discussing this issue with the executor first to seek clarification and possibly resolve the matter amicably. If this approach fails, consulting with an attorney who understands trust law could be beneficial. They can help you understand your rights and possibly assist in filing a petition with the probate court to review the trustee's actions, seek reimbursement of unwarranted charges, and ensure the trust is managed properly.

Nina Whitehurst agrees with this answer

1 user found this answer helpful

Karn Thapar
Karn Thapar
Answered
  • Estate Planning Lawyer
  • Folsom, CA
  • Licensed in California

A: Generally speaking, the executor should not be commingling estate funds and personal funds. Sometimes the latter is used for convenience, however best practice is to use the funds available from the estate to pay estate expenses. Regarding getting back into the trust, you should speak to a qualified attorney to discuss that.

1 user found this answer helpful

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