Topic California Decanting Statute

Times of economic stress may reveal trust asset mismanagement. Alternative fee structures may provide a solution.

Sr. Associate Dave Parnall & Principal David Baer review the California court decision in Roth v. Jelley and the importance of attorneys giving notice to trust beneficiaries.

California law has long recognized a settlor’s right to restrict a beneficiary’s use of trust assets. Restraints on alienation, spendthrift clauses, shutdown clauses and wholly discretionary trusts are a few of the tools settlors may use when creating a trust for the benefit of someone likely to have creditor problems.