If I’ve distributed the bulk of a Trust to the beneficiariesand am about to send out the final accounting, can I hold back some money?

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If I’ve distributed the bulk of a Trust to the beneficiariesand am about to send out the final accounting, can I hold back some money?

About $30,000 until the 3 year limitation is reached on contesting. Is this legal?

Asked on October 16, 2012 under Estate Planning, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under the laws of all states in this matter you can hold back monies from the trust due to concerns about a contest of the estate for the time period that you have written about.

However, the better approach would be for a release agreement signed by all beneficiaries allowing the distribution sooner rather than later where the beneficiaries understand that in the event of a contest that a portion of the distribution given to them could be called into question and demanded by a third party.


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