Received a Trust Notice in the Mail? Here’s What You Need to Know

Received a Trust Notice in the Mail? Here’s What You Need to Know

Steven McLellan & Claire Melehani

What to Do If You Receive a Trust Notice in California

If you’ve received a trust notice in the mail, you might be wondering what it means and if you need to take action. California law requires trustees to notify beneficiaries and other interested parties when a trust is being administered, changed, or when certain legal events occur.

Understanding what a trust notice is, why you received it, and what deadlines apply is essential to protecting your rights. Ignoring it could mean losing your ability to challenge the trust or claim assets that rightfully belong to you. In this guide, we’ll explain what a trust notice is, the deadlines to act under California law, and what you could lose if you don’t respond in time.

What Is a Trust Notice?

A trust notice is a legal document sent to beneficiaries and other interested parties when an important event occurs within a trust. Under California Probate Code § 16061.7, this notice is required when a formerly revocable trust becomes irrevocable due to the settlor’s death.

Why You May Have Received a Trust Notice

You may receive a trust notice for several reasons:

1. The trust creator (settlor) has passed away – If the trust was revocable during the settlor’s lifetime, it often becomes irrevocable upon their death, triggering a notice requirement.
2. The trustee has changed – If a new trustee takes over managing the trust, all beneficiaries must be notified.
3. A power of appointment has been exercised or expired – If the settlor retained a special authority over trust assets (more on this below), a notice must be sent when this authority either takes effect or expires after the settlor’s death.
4. The trust is being administered or changed – If a trust undergoes a major event, such as a division, termination, or distribution of assets, beneficiaries must be informed.

What Is a Power of Appointment?

A power of appointment is a legal right that allows the trust creator (settlor) to decide who will receive certain assets in the trust and under what conditions. Think of it as a special control mechanism that gives the settlor the ability to change how assets are distributed even after the trust was created.

There are two key ways this power might affect a trust:

1. The power of appointment is exercised – This means the settlor used their authority to direct how certain assets should be distributed after their death. If this happens, beneficiaries must be notified.
2. The power of appointment lapses – If the settlor did not use this power before passing away, the assets will be distributed according to the default terms of the trust. Beneficiaries must be informed of this as well.
   
   

Why does this matter? If you’re a beneficiary, you need to know whether the settlor made last-minute changes affecting your inheritance or if the default trust terms will apply.

Your Rights After Receiving a Trust Notice

What Happens If You Ignore a Trust Notice?

What Should You Do Next?

If you’ve received a trust notice, take these steps immediately:

📌 Step 1: Read the notice carefully and check the 120-day deadline.
📌 Step 2: Consult a trust attorney to understand your rights and determine your next steps.

Trust Litigation Consultations for Californians

At McLellan Law Group, LLP, our team is dedicated to helping California residents navigate the complexities of trust litigation. If you’re facing a lawsuit or need guidance on potential trust litigation, our attorneys can provide customized advice to protect your interests. Request a free consultation today to discuss your situation and explore your options.

Final Thoughts

Receiving a trust notice can feel overwhelming, but it’s a critical step in ensuring your inheritance rights are protected. Whether you need help reviewing a trust, contesting its terms, or understanding your legal options, acting quickly and strategically is key.

If you have questions about your trust notice, reach out today to discuss your options and protect your future.