Hi, I’m Dan Collins – a California licensed real estate broker with expertise in real property matters in Probates and Trusts. I am also a California licensed general contractor and receivership expert. To learn more about receiverships protecting values, please visit my website: probate-realtor.biz
I want to tell you about how receivers can be useful in difficult trust or probate cases.
Family relationships can sometimes create toxic environments, especially amongst siblings who are beneficiaries to a Trust or Probate. Let’s be truthful here; being asked to act as a Trustee or to administrator probate is a thankless duty that comes with real exposure to risk and liabilities.
In a family dynamic, it is usually the most responsible sibling who is appointed to act and administer a Trust or Probate after a loved one has died.
Usually the person who has stepped up to act as the Probate administrator or, a Trustee, has a family and a job with a full life and not enough hours in a day or week to accomplish everything they need and want in their life. Add to that life situation the burden of being an executor of an estate and you have a recipe for a lot additional stress.
Attorney Mike Hackard of Hackard Law and I have seen these dynamics countless times; stress can cause people to act in ways that are not becoming. In some people, stress can cause a person to become aggressive or emotionally unstable, which can lead to poor decision making.
Beneficiaries do not have a position of strength or leverage when that occurs with the person who is responsible to protect assets for their benefit. Sometimes they feel they need to seek legal counsel if they suspect the Trustee or Executor is not acting in accordance to trust and, or, the last will and testament of a decedent, especially where legacy assets are involved, such as a business or income property.
When an Estate Executor is acting in ways that obviously are counter-productive to properly run a business or manage an income property, quick action is necessary to protect the legacy asset. Appointment of a Receiver is an effective and powerful tool to employ in those situations. A Receiver has fiduciary duty to all parties, not just one side. There is no more equitable action than to seek the appointment of a qualified receiver to protect legacy assets.
The Receiver can step in quickly upon the court granting the appointment, assess the operations and make certain the business or the income property is adequately protected with insurance, licensing if necessary, and to create a temporary estate with all the powers of possession to provide an orderly takeover and protect all parties as well as the legacy asset.
The Estate Executor can also benefit from the appointment of a Receiver because it mitigates their exposure to liability if they have deliberately or, inadvertently taken action that if left uncorrected, may result in negative consequences — such as a monetary judgement if they were not removed from a role which they were not qualified to manage, but were placed in because the decedent named them as the Estate Executor.
I’m Dan Collins, a California licensed real estate broker, general contractor and receivership expert. To learn more, please visit my website: probate-realtor.biz