When multi-family and commercial real estate is held in trust in California, a fiduciary must manage the trust assets appropriately.
Because of the complexity of trust arrangements and the number of people involved, conflicts may arise that lead to litigation. It’s important to understand your rights in these situations.
Contact a Los Angeles trust contest lawyer today. Call the firm at (858) 209-2309.
What Does It Mean When Multi-Family And Commercial Real Estate Is Held In Trust?
When multi-family or commercial real estate is held in trust, the trust takes legal title to the property and becomes the new legal owner. The grantor, or person who gave the trust the asset, is no longer considered the legal owner of the property.
A trustee is usually named to manage the property that is moved into the trust (the original owner could be the trustee), and beneficiaries are named. Beneficiaries are individuals or entities intended to benefit from the trust. The trustee is responsible for taking care of the property and acting in the best interests of beneficiaries.
Commercial and multi-family real estate is often moved into a trust to allow the property to pass to new owners without going through probate.
What Types Of Disputes Can Arise Due To This Real Estate Being Held In Trust?
Unfortunately, many types of disputes can arise when commercial or rental properties are placed into trust.
That’s because these properties often have a very high value, but also require maintenance. There are likely also operating costs associated with managing the properties, and tax issues to consider.
Some of the most common types of disputes that come up when commercial and rental property are moved into a trust include accusations of:
- Gross mismanagement
- Neglect
- Self-dealing or conflicts of interest
Conflict can also arise regarding how the trust language should be interpreted, whether the trustee is communicating appropriately with beneficiaries, or whether the property should be retained or sold.
What Are Some Remedies When A Conflict Arises Over Real Estate Held In A Trust?
If there is a conflict over real estate held in a trust, there are also many potential remedies that could be appropriate depending on the accusations. Some of the steps that could be taken to resolve the conflict, include:
- The court compelling an accounting of the trust
- A trustee being held responsible for damaging the value of the real estate through a surcharge
- Removal of the trustee and appointment of a successor trustee
- An injunction preventing the trustee from acting inappropriately
These are just some of the potential remedies that you could pursue. You’ll need to understand the extent of your losses as well as the legal recourse available to you under the law. Albertson & Davidson, LLP can help.
Contact A California Trust Litigation Lawyer Today
A California trust litigation lawyer at Albertson & Davidson, LLP can provide invaluable support in understanding your rights as a trust beneficiary.
If a conflict arises over commercial or multi-family real estate held in trust, our firm will do all we can to help you build a strong claim for your preferred resolution.
To find out more, give us a call at (858) 209-2309 or contact us online today to schedule a consultation.