DISQUALIFIED BENEFICIARIES
Under certain circumstances, California laws would allow disqualification of a named beneficiary of the trust. Generally, the same analysis for the trust in this article also applies for the will.
In most cases, the disqualification of beneficiary of trust relates to the fiduciaries that have obtained the confidence of the settlor of trust, have been involved in creation of the trust, and at the same time have benefited from the trust. Disqualification of a beneficiary of trust also involves the drafter of trust, the caregiver of settlor, and the blood relatives, spouses, domestic partners, cohabitants, or employees of drafter, fiduciary or caregiver of the settlor.
A fiduciary could be an attorney, a doctor, a clergy, an accountant, or any other person that is close to the settlor and could obtain his or her confidence. The fiduciary, however, must have transcribed the trust, or have caused the trust to be transcribed.
California laws may disqualify a named beneficiary, or may cause a presumption that naming the beneficiary was as the result of fraud or undue influence.
Under California laws, certain persons are exempt to be disqualified. This is true even if they have obtained the confidence of the settlor of trust, have been involved in creation of the trust, and at the same time have benefited from the trust. An exemption applies to the followings:
1. The named beneficiary that is related by blood or marriage to the settlor.
2. The named beneficiary that is a cohabitant, or is the registered domestic partner of the settlor.
3. The trust was reviewed by an independent attorney that counsels the settlor.
4. The trust is approved by a judgment.
5. The named beneficiary establishes by clear and convincing evidence that the trust was not a product of fraud or undue influence.
6. The named beneficiary is a public agency.
For more information call us at (310)553-5562.
Under certain circumstances, California laws would allow disqualification of a named beneficiary of the trust. Generally, the same analysis for the trust in this article also applies for the will.
In most cases, the disqualification of beneficiary of trust relates to the fiduciaries that have obtained the confidence of the settlor of trust, have been involved in creation of the trust, and at the same time have benefited from the trust. Disqualification of a beneficiary of trust also involves the drafter of trust, the caregiver of settlor, and the blood relatives, spouses, domestic partners, cohabitants, or employees of drafter, fiduciary or caregiver of the settlor.
A fiduciary could be an attorney, a doctor, a clergy, an accountant, or any other person that is close to the settlor and could obtain his or her confidence. The fiduciary, however, must have transcribed the trust, or have caused the trust to be transcribed.
California laws may disqualify a named beneficiary, or may cause a presumption that naming the beneficiary was as the result of fraud or undue influence.
Under California laws, certain persons are exempt to be disqualified. This is true even if they have obtained the confidence of the settlor of trust, have been involved in creation of the trust, and at the same time have benefited from the trust. An exemption applies to the followings:
1. The named beneficiary that is related by blood or marriage to the settlor.
2. The named beneficiary that is a cohabitant, or is the registered domestic partner of the settlor.
3. The trust was reviewed by an independent attorney that counsels the settlor.
4. The trust is approved by a judgment.
5. The named beneficiary establishes by clear and convincing evidence that the trust was not a product of fraud or undue influence.
6. The named beneficiary is a public agency.
For more information call us at (310)553-5562.
