New Case Alert -


Gray v. Jewish Federation of Palm Springs and Desert Area

Filed January 6, 2016, Fourth District, Div. Two Cite as E059761

The Jewish Federation of Palm Springs and Desert Area, as remainder beneficiary, objected to accountings provided by the trustee, who was also the income beneficiary. Federation argued the trustee breached her fiduciary duties by improperly allocating trust expenses to principal rather than income. The trial court agreed with Federation, finding that the expenses were chargeable as income and could be apportioned over the term of the lease.

On appeal, the trustee argued that expenses for leasehold improvements, preparing spaces for rent, broker commissions, and capital improvements are chargeable to principal. However, the appellate court affirmed the probate court’s ruling, finding that the items are allocable to income. If an expense is to be paid from income, but there is insufficient income to pay the expense and maintain the income beneficiary’s distribution, the trustee can pay for the expense from principal; however, the trustee must pay back the principal over time if there is no reserve.

http://www.courts.ca.gov/opinions/documents/E059761.PDF


Recent Posts
Archive
Search By Tags
No tags yet.
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

© 2020 by Ratner & Pinchman, PC.  The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.  Please note that the State Bar Ethics Rules require us to disclose that testimonials or endorsements do not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

 

Ratner & Pinchman, PC serves clients in Southern California, including San Diego County, Orange County, Riverside County and the cities of Chula Vista, Coronado, Del Mar, El Cajon, Encinitas (Cardiff-by-the-Sea, Leucadia, Olivenhain), Escondido, Imperial Beach, La Mesa, Lemon Grove, National City, Oceanside, Poway, San Diego, San Marcos, Santee, Solana Beach, and Vista.  We are San Diego Elder Law and Medi-Cal Planning Attorneys.