Shareholder Andrew Verriere highlights Governor Newsom’s recently signed AB 1194, which expands the protections for conservatees and proposed conservatees in California. Among other things, (1) their attorneys are required to serve as advocates rather than advising the court on the attorney’s perception of what is in the conservatee’s or proposed conservatee’s best interests, (2) they can select their own counsel, and (3) provides for investigation of alleged abuse by fiduciaries with increased penalties for those found liable.
You can find a short update on the statute at Bloomberg Tax.
Trustees should anticipate that beneficiaries’ inquiries and demands will intensify.
When most people hear about elder abuse, they think of cruel or apathetic caregivers leaving elderly family and friends unattended or physically abusing them. But elder abuse is more than physical abuse: when someone takes any property - including real estate, cash, or any other asset or interest - from a person over the age of 65 by fraud or undue influence, it constitutes financial elder abuse.
Many trustees employ counsel to provide advice on dealing with and responding to inquiries from beneficiaries. Trustees may believe that their communications with and advice from counsel are confidential and cannot be disclosed to the beneficiaries without their consent. The recent court decision in Fiduciary Trust International of California v. Klein (2017) 9 Cal. App. 5th 1184 is a cautionary tale that warns trustees against assuming that all communications with an attorney are confidential.