120-Day Notification for a Trustee

What is a 120-Day Notification for a Trustee?

When a trust becomes irrevocable, typically after the death of the settlor (the person who created the trust), the trustee has several legal obligations to fulfill. One of the most critical tasks is providing the beneficiaries and heirs with a 120-day notification. This notification is not only a formal requirement but also a key legal safeguard, outlined specifically under California law.

The Purpose of the 120-Day Notification

The 120-day notification serves as a formal notice to beneficiaries and heirs that the trust has become irrevocable. This means that the terms of the trust are now fixed, and no further changes can be made. The notification is a legal requirement in many states, including California, and it triggers a limited period during which beneficiaries can challenge the validity of the trust or any amendments to it.

California Probate Code Section 16061.7

In California, the 120-day notification requirement is governed by California Probate Code Section 16061.7. This statute mandates that the trustee must notify all beneficiaries and heirs when a trust becomes irrevocable. The key elements of the notification, as specified by this section, include:

1. Notice of Irrevocability: The document should clearly state that the trust is now irrevocable and that the beneficiaries’ rights under the trust are now in effect.
2. Trustee’s Contact Information: The notification must include the name, address, and contact details of the trustee, who is now responsible for managing and distributing the trust assets.
3. Copy of the Trust or Relevant Sections: Beneficiaries are entitled to receive a copy of the trust document or, at a minimum, the portions that describe their interest in the trust.
4. Timeframe for Contesting the Trust: The notification must inform beneficiaries that they have 120 days from the date of the notice to file a lawsuit contesting the trust. If no action is taken within this period, beneficiaries typically lose the right to challenge the trust.

Why the 120-Day Notification is Crucial

The 120-day period is a strict deadline. Under California Probate Code Section 16061.7, if beneficiaries or heirs believe there is a reason to contest the trust—such as undue influence, fraud, or lack of capacity—they must take legal action within this timeframe. Missing the deadline can result in losing the right to contest the trust altogether, which makes this notification a critical document in the probate process.

Responsibilities of the Trustee

As a trustee, failing to provide the 120-day notification as required by California law can have serious legal consequences, including personal liability. Trustees must ensure that the notification is sent out promptly and that all legal requirements under California Probate Code Section 16061.7 are met to protect themselves from potential legal challenges.

Conclusion

The 120-day notification is a key component of the trust administration process, providing beneficiaries with essential information about their rights and the irrevocability of the trust. It also sets a firm deadline for any legal challenges to the trust’s validity under California Probate Code Section 16061.7. If you are a trustee or a beneficiary with questions about the 120-day notification, it’s important to consult with an experienced probate attorney to ensure that your rights and responsibilities are fully understood and protected.