Navigating Real Estate Trusts and Property Dissolution in California

Real estate matters in California can be complicated, especially when intertwined with estate planning tools like trusts. If you're managing or dissolving a trust that holds real estate—or if you're a beneficiary—it’s important to understand your rights and obligations under California law. At Lucien Law Group, we provide experienced legal counsel to trustees, beneficiaries, and individuals navigating the complex world of real estate and estate administration.

In this blog, we break down key considerations for handling real estate during trust dissolution, the role of the trustee, how wills can impact property, and what rights you have as an heir or beneficiary.

Understanding Trust Dissolution in California
Trusts are commonly used to avoid probate and manage real estate assets efficiently. In California, a revocable trust can typically be dissolved by its creator, while irrevocable trusts are more complex and may require court approval or consent from all beneficiaries.

When it comes time to dissolve a trust—whether due to the death of the settlor, a completed purpose, or a family decision—it’s crucial to follow the legal process carefully, especially when real estate is involved.

The Trustee’s Role in Real Estate Trust Dissolution
A trustee has a fiduciary duty to act in the best interest of the beneficiaries during trust administration and dissolution. Their responsibilities include:

• Notifying Beneficiaries: Trustees must inform all beneficiaries about the trust’s dissolution and plans for distributing assets.

• Real Estate Inventory and Oversight: Trustees must secure property (e.g., changing locks, maintaining insurance), and prepare it for potential sale or transfer.

• Settling Debts: Any debts linked to the trust or property must be resolved before distribution.

• Legal Transfers: Trustees must prepare and record documents like a Trust Transfer Deed to legally transfer ownership.

Managing Real Estate in a Trust
Real estate held in a trust requires special care. Trustees are responsible for:

• Securing and Insuring the Property

• Performing Maintenance and Repairs

• Keeping Accurate Accounting of Income and Expenses

• Complying with Legal Notice and Transfer Requirements

Additionally, if a property owner passes away, trustees must file a “Change in Ownership Statement – Death of Real Property Owner” with the county assessor.

The Will’s Role in Real Estate and Trust Administration
While trusts help avoid probate, not all assets may be properly titled in the trust. When this happens, a will—or the lack of one—can influence how those assets are distributed. However, trust terms and beneficiary designations usually override will instructions.

To prevent confusion or legal disputes, estate documents should be regularly updated and reviewed to ensure consistency and accuracy.

Know Your Rights to Your Inheritance

As a beneficiary or heir, you have legal rights—whether the property is held in a trust, governed by a will, or passing through intestate succession (when there’s no will). Your rights include:

• Timely Notice: You must be informed when a trust is created, modified, or dissolved, and when you are named as a beneficiary.

• Access to Information: You are entitled to receive a copy of the trust or will, and a detailed accounting of the estate’s assets, expenses, and distributions.

• Fair Distribution: You have the right to receive your inheritance according to the terms of the trust or will—or by law if there is no estate plan.

• Legal Recourse: If a trustee or executor fails to fulfill their duties or acts in bad faith, you can take legal action to protect your interests.

Unfortunately, inheritance disputes are common, especially when family dynamics, unclear documents, or high-value real estate is involved. If you're concerned about delays, unfair treatment, or suspicious behavior, it's essential to speak with a knowledgeable attorney right away.

Why You Need a Real Estate Attorney Who Understands Trusts
From real estate transactions to complex trust dissolutions, every decision can carry significant financial and legal consequences. At Lucien Law Group, we represent trustees, beneficiaries, and property owners with:

• Real estate contract review and negotiation

• Trust-based real estate sales or transfers

• Title and ownership disputes

• Beneficiary representation and trust litigation

• Probate matters involving real property

We are committed to protecting your rights and preserving your legacy.

Contact Lucien Law Group
If you're navigating a real estate trust, contesting a will, or unsure about your inheritance rights, our team is here to help.

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☎️ (818) 937-4711
📍 Lucien Law Group | Encino, CA