Q: What is a Notice of Proposed Action?

| Feb 10, 2021 | Estate Planning, Q&A, Trust And Estate Administration |

A: A Notice of Proposed Action essentially requires a beneficiary to “speak now or forever hold their peace.” California Probate Code sections 16500-16504 permit a trustee to give notice to the beneficiaries of a trust that the trustee intends to take (or not to take) some kind of specified action. After obtaining the consent of the beneficiaries, or waiting at least 45 days, the trustee may proceed with the proposed action without any liability.

For example, the trustee of the family trust might mail a Notice of Proposed Action to their siblings that they intend to sell the real property that the trust owns in Napa for at least $700,000. After waiting the required 45 days, the trustee can move forward and list the property for sale for at least $700,000 without risk of later being held liable to the trust or beneficiaries for selling the property below market price.

If you have any questions about this, please feel free to reach out to us (707-681-5851 or [email protected]) or set up a complimentary consultation at your convenience by clicking on the following link: https://MyNapaLawyer.as.me/