Right to Know the Value of All Assets

I recently had a call with Emily, absolutely distraught. Her mother had passed away with a trust, and Emily suspected her step-father wasn’t being truthful about the assets it held – specifically, a valuable antique coin collection. She’d asked for an accounting, but he brushed her off, claiming ‘family business’ and delaying tactics. Emily feared significant assets were being hidden, costing her and her siblings tens of thousands of dollars. The emotional distress, coupled with the potential financial loss, was overwhelming.

As an Estate Planning Attorney and CPA with over 35 years of experience here in Corona, California, I see this situation far too often. Beneficiaries are left in the dark, unsure if the trustee is acting with integrity. It’s understandable to feel frustrated and even betrayed. While a trustee isn’t required to disclose everything the moment you ask, they absolutely have a legal duty to keep you informed and provide a formal accounting when requested.

What Exactly is a Beneficiary’s Right to Information?

The law, specifically Probate Code § 16060 & § 16062, establishes an “affirmative duty” on the part of the trustee. This means they can’t simply ignore your requests. They must keep beneficiaries “reasonably informed” about the trust’s administration. What’s “reasonable” depends on the trust itself and the complexity of the assets, but it goes beyond a cursory update.

This duty isn’t just about knowing that an asset exists. It’s about understanding its value. If your mother owned a business, you’re entitled to see financial statements. If there are stocks or bonds, you deserve to know their current market value. And, as in Emily’s case, if there are collectibles, a reasonable appraisal should be available. Failing to provide this information isn’t just bad practice; it’s a potential breach of fiduciary duty.

What Happens if a Trustee Refuses to Provide an Accounting?

If a trustee digs in their heels and refuses to provide a proper accounting, you’re not powerless. The law gives you recourse. You can file a petition with the court to compel the trustee to provide an accounting. Probate Code § 16060 & § 16062 specifically allows beneficiaries to petition the court.

Important Considerations:
• The petition process does involve legal fees, which can be paid from the trust assets if you prevail.
• The court can also “surcharge” the trustee – meaning they can be held personally liable for any losses caused by their failure to fulfill their duties.
• Simply making a demand for an accounting isn’t enough. You typically need to show you’ve made reasonable attempts to obtain the information.

How Does a CPA Background Help with Trust Accountings?

This is where my CPA license adds significant value. Unlike many estate planning attorneys, I understand the tax implications of trust assets. Knowing the “step-up in basis” rules for inherited property, for example, can significantly reduce capital gains taxes.

CPA Advantage:
• Properly valuing assets requires a deep understanding of accounting principles.
• Identifying potential tax liabilities during the accounting process can save the estate (and the beneficiaries) substantial money.
• Being able to interpret financial statements and tax returns ensures a thorough and accurate accounting.

What if You Suspect Assets are Missing Altogether?

Sometimes the issue isn’t a lack of information, but a complete omission of assets. Perhaps a valuable piece of real estate wasn’t listed on the trust schedule, or a brokerage account has disappeared. In these situations, the Heggstad Petition (Probate Code § 850) is your key tool. This petition allows you to ask the court to confirm that an asset is part of the trust, even if it wasn’t formally transferred. This prevents the asset from accidentally falling into a separate probate proceeding, which would further complicate matters and add expense.

What Steps Should You Take if You’re Concerned?

If you suspect a trustee isn’t being transparent or is potentially mismanaging trust assets, don’t delay.

Action Steps:
• Document Everything: Keep copies of all correspondence with the trustee, as well as any information you have about the trust assets.
• Send a Formal Demand: A written request for an accounting is crucial. This establishes a clear record of your attempt to obtain information.
• Consult with an Attorney: An experienced estate planning attorney can review your situation, advise you on your legal rights, and help you navigate the process of obtaining an accounting or pursuing legal action.

Emily, after we reviewed her mother’s trust documents and sent a formal demand for an accounting, the step-father quickly provided the information. He hadn’t intentionally hidden the coins, but he hadn’t bothered to have them appraised. Knowing that we were prepared to go to court motivated him to cooperate. While the process can be stressful, protecting your inheritance is worth the effort.

What determines whether a California probate estate closes smoothly or turns into litigation?

California probate is designed to provide court-supervised transfer of property, yet cases often break down when authority is unclear, required steps are missed, or disputes arise over assets, notice, and fiduciary conduct. When the process is misunderstood, families can face avoidable delay, escalating conflict, and increased exposure to creditor issues, hearings, or litigation before the estate can close.

 
• Appearances: Prepare for the probate hearing.

 

• Rules: Follow strict probate procedure requirements.

 

• Organization: Maintain managing a probate case logs.

California probate is most manageable when authority is documented early, assets are classified correctly, and procedure is followed consistently from petition through closing. When the process is approached with realistic expectations about notice, claims, accounting, and dispute risk, the estate is more likely to move toward closure without avoidable conflict or delay.

Verified Authority on California Beneficiary Rights

• Statutory Notification Window (The “120-Day Rule”): California Probate Code § 16061.7
  This is the most critical statute for beneficiaries. Once a trustee serves this formal notice, you have exactly 120 days to file a contest. If you miss this deadline, you are generally forever barred from challenging the validity of the trust, regardless of the evidence you have.
• Right to Accounting & Information: California Probate Code § 16060 (Duty to Inform)
  Trustees have a mandatory legal duty to keep beneficiaries “reasonably informed” about the trust and its administration. Under Probate Code § 16062, most trustees must provide a formal financial accounting at least once a year. If they refuse, the court can compel them to do so.
• Inheriting Real Estate (Prop 19): California State Board of Equalization (Prop 19)
  Beneficiaries must understand that inheriting a home no longer guarantees low property taxes. Under Prop 19, to avoid reassessment to current market value, the child must make the home their primary residence within one year of the parent’s death.
• No-Contest Clause Enforceability: California Probate Code § 21311
  Fear of disinheritance often stops beneficiaries from fighting for their rights. However, this statute clarifies that a No-Contest clause is only enforceable if the contest is brought without “probable cause.” If you have a reasonable basis for your claim, your inheritance is likely safe.
• Recovering Trust Assets (Heggstad): California Probate Code § 850 (Heggstad Petition)
  If a beneficiary finds that a parent intended an asset to be in the trust but failed to sign the deed or change the account title, a Section 850 Petition allows the court to “transfer” that asset into the trust without a full probate proceeding.
• Removal of a Bad Trustee: California Probate Code § 15642
  Beneficiaries have the right to petition for the removal of a trustee who is unfit. Grounds for removal include excessive compensation, inability to manage finances, or “excessive hostility” toward beneficiaries that interferes with the trust’s administration.