There are many nuances to consider when it comes to the statutes of limitations and deadlines involved in an inheritance claim. In the case of California state law, deadlines can range from 120 days from the moment you are notified of a testator passing away, to essentially none, depending on the circumstances, with the whole process typically taking around 9 months. That’s why knowing what is involved is critical to assert your rights as an heir and receive what you are entitled to with minimal difficulty.

How California’s 120-Day Deadline to File a Claim Begins

Under Probate Code 16061.7, when a person with a trust passes away, the successor trustee must notify all named trust beneficiaries and the deceased’s close relatives that the trust exists and is now irrevocable. If a beneficiary believes they are entitled to a larger share or someone excluded from the trust wishes to contest it, they must act within 120 days from the date of notification or 60 days from the date they receive a copy of the trust, whichever happens later. Otherwise, they forfeit their right to contest.

Streamlining the Notification Process

To streamline the process, trustees often send out the trust document along with the 120-day notice, unless there’s a specific reason not to share it (for example, if someone objects to other people seeing all the details of the trust and withholds it unless there’s a direct and personal review request). However, delaying this process can be legally risky. If someone waits until the 119th day to ask for a copy of the trust, they gain an additional 60 days to challenge it, which extends the inheritance process for everyone involved.

Trust Distribution After the Deadline

For that reason, a trustee might avoid certain actions until the 120-day period has passed, not distributing the trust’s assets until they are absolutely sure no one is going to file a legal challenge. This means that, in the best-case scenario, this process will take 4 months at minimum, because that’s how long potential claimants have to come forward.

However, this is assuming everyone is satisfied with the terms of the trust. If a parent passes away, leaves two children as co-trustees, and they don’t get along, the process can stall. Some trusts might ask co-trustees to sign a legal document to ensure nobody files any legal challenges to avoid these situations, but even then some practical realities still take time: settling debts, gathering information about the trust’s assets, obtaining their last bank statements, selling the deceased’s residence (or deciding who will move in) and so forth. In other words, it can take several months to ensure everything is accounted for properly and the assets can be split in the way they were intended to be. 

Trustee Notification Timelines and Their Impact

It should be noted, however, that these deadlines start the moment the trustee notifies every relevant individual, and there may be specific circumstances or details that could impact how the process plays out, so it’s important to keep those in mind. 

First and foremost, Probate Code 16061.7 establishes a 60-day period for the trustee to let all beneficiaries know of the death of a testator. This notification is sent to the last known address of the beneficiary, and the 120-day deadline to challenge the trust starts the moment the notification gets into a mailbox (known as the “Mailbox rule”). However, this isn’t always a strict deadline, and penalties for failing to notify beneficiaries within this period are rarely enforced. That said, under ideal circumstances, a trustee should aim to send out the notifications within a month to start the 120 days for challenging the trust. 

On the flip side, if a trustee fails to send the letters of notification entirely, beneficiaries effectively have no deadline to file a claim challenging the trust’s terms. In some extreme cases, trustees may even administer the trust and distribute all assets without sending the required notifications. When this happens, under Code section 16061.9, the trustee could be held personally liable for any resulting damages, attorney fees, and costs, unless they can show they made a reasonably diligent effort to comply with the notification requirements.

The Process of Challenging a Trust 

Be aware that, if you want to challenge a trust, there isn’t a simple form you can fill out. You must file a detailed petition in court through a formal process that lays out your reasons for the challenge (for example, that it was the result of undue influence or fraud, or that a later trust exists, etc.) as outlined by California Probate Code Section 17200. The petitions you can file include:

• Confirming the Trust Exists: To petition for the court to verify whether the trust is valid or exists.
• Determine Beneficiary Rights: To seek clarification about who they are and what they’re entitled to receive.
• Interpreting All Terms: To request clarification about specific provisions or terms in the trust.

On a related note, trustees can also issue a Notice of Proposed Action (NOPA), which is a document to let beneficiaries know about actions they plan to take. Beneficiaries have the right to object to these actions, but to stop them completely, they will also need to file a petition in court. If it’s not submitted, they may be deemed to have consented to the proposed action and lose their right to contest it later. To this end, a written objection must be received by the personal representative of the trustee before the date specified in the NOPA, or the actual date on which the proposed action is carried out. 

The Rights of Unknown Heirs and Trust Beneficiaries

What happens if you’re an unknown beneficiary who didn’t receive the required notification? Maybe you’re a long-lost sibling, a child from a prior marriage, or a caregiver who believes you should have been included in the trust. If the trustee didn’t know you existed, they wouldn’t have been able to send you notice.  

California law requires trustees and the executor to notify every individual explicitly named in the trust. However, some provisions, like “to my kids,” require the trustee to determine exactly who qualifies. Additionally, when the settlor’s death triggers the notification requirement, all heirs of the estate (not only the named ones) must also be served.

The trustee is protected in these situations with the statute saying: “The trustee need not provide a copy of the notification by a trustee to any beneficiary or heir (1) known to the trustee but who cannot be located by the trustee after reasonable diligence or (2) unknown to the trustee.”

Challenges in Claiming an Inheritance

That said, a previously unknown beneficiary may still be able to successfully bring a claim, but delays can complicate matters. If the trust’s assets have already been distributed, the trustee would need to ask the beneficiaries to return funds to satisfy the claim. In practice, this can be difficult; they might have already spent their shares, leaving you with limited options. To avoid this, it’s essential to act promptly if you believe you have a claim, ensuring your rights are preserved before the estate’s assets are distributed.

Missed Deadlines and Civil Alternatives for Heirs

What happens if you don’t initially challenge a trust because you weren’t aware of facts supporting a claim, such as lack of capacity or undue influence? For instance, you might receive the trustee’s notice and initially see no reason to act. But what if you later uncover new information (like the deceased had a mental health condition or was influenced by someone else)? How much time do you have to respond?

In such cases, you lose the ability to contest the trust under the relevant codes once the 120-day statute of limitations has passed. The probate court prioritizes finality and certainty in trust administration, treating the document as valid unless it’s challenged within that timeframe. 

However, the timeline for filing a civil claim depends on the nature of your allegations. For instance, if you suspect any fraud or mistake, under the Code of Civil Procedure 338 (d), there is a 3-year limitation period that typically begins when you discover, or reasonably should have discovered, these suspicious actions. Otherwise, the California Code of Civil Procedure 343 establishes a “catch-all” statute of limitations of 4 years for legal actions that are not explicitly covered by other procedures.

So, while invalidating the trust through a probate claim may no longer be an option, pursuing a separate civil case could provide a path to seek remedies. Nonetheless, acting quickly upon discovering new facts is crucial to preserving your rights and improving your chances of success.

Is it better to challenge a trust while it’s still under the probate court’s jurisdiction? In most cases, yes. These operate as courts of equity, focusing on fairness and justice rather than rigid legal formalities.

Challenging a Trust in Court

Although failing to act within the 120 or 60-day timeframe risks losing your opportunity to challenge the trust, there are other requests you can make to the court past the 120-day deadline, including:

• Request an Accounting: If the trustee hasn’t provided financial details, you can demand an account of trust activities and estate assets.
• Modify or Terminate the Trust: To request changes to the trust terms or its termination if circumstances justify it.
• Transfer or Divide Trust Property: To seek court approval to move trust property, combine trusts, or divide them as needed.

It is worth noting, however, that the court is minimally involved in trust administration unless a problem arises. Trustees manage the process independently by following the rules: issuing notices, waiting for objections, and ultimately distributing assets. If no challenges are raised, they can have the beneficiaries sign a final distribution agreement without requiring court approval. Often the only court involvement in a trust administration is lodging the original will to ensure a verified record exists if disputes arise in the future. This streamlined process is designed to promote efficiency but underscores the importance of acting quickly if you intend to raise concerns about the trust.

Challenges to Trustee Actions

Trustees are legally required to prioritize the best interests of the beneficiaries. If a trustee mismanages trust assets, misappropriates funds, or acts in their own self-interest, beneficiaries have the right to contest the trustee’s actions in court and these issues can be brought up at any time during a trust administration, or ever after if appropriate. Potential challenges may include:

• Questioning Trustee Actions: To ask the court to review the trustee’s decisions, actions, or use of discretion.
• Challenging Trustee Misconduct: If the trustee breached their duties, you could ask the court to address it through remedies like compensation or removal.
• Addressing Trustee Compensation: To petition to review the reasonableness of the trustee’s fees.
• Appointing or Removing Trustees: To ask the court to replace a trustee or appoint a new one.

Generally, there is a three year statute of limitations to make allegations that the trustee has breached the trust or acted outside of their fiduciary duties. Once such a petition is filed and it is clear that the sides cannot settle the dispute, the court will set a date for an evidentiary hearing, allowing both sides to present their arguments. The beneficiary is responsible for providing evidence to substantiate their claims, while the trustee can respond and justify their actions. 

Given the complexities involved, beneficiaries are encouraged to seek guidance from a probate attorney to effectively manage the process and meet all legal obligations.

How Long Does Trust Administration Take? 

The length of time required to settle a trust can vary widely depending on the complexity of the estate. If the deceased had minimal personal assets (such as a bundle of money and no real property) the process may be relatively quick. However, when more complex assets are involved, things take longer. For example, real estate often needs to be appraised, and decisions must be made about whether to sell it or keep it in the family. Additionally, documents for real property must be recorded, and tax returns must be filed for both the deceased and the trust.  

Tax filing deadlines depend on how the process is handled. You may elect to treat the trust along with the deceased’s estate for tax purposes and file under a fiscal year or follow the calendar year, with returns due by the usual April 15^th deadline. Each choice has its advantages, so consulting an attorney to understand the specific circumstances of the trust is essential.  

If an estate tax return isn’t required, a reasonable timeframe for completing trust administration is six to nine months. This estimate includes the standard 120-day notification period plus a few additional months to handle appraisals, filings, and distributions. And simpler cases might take as little as three to six months.

Assert Your Rights as an Heir  

Understanding the deadlines and nuances involved in estate and trust administration and inheritance claims is critical to protecting your rights and ensuring a smooth process. It’s important to note that the deadlines discussed here apply to cases involving trusts, not estates which are being probated through court. Whether you are a beneficiary, trustee, or someone who believes they should have been included in the trust, acting quickly can make all the difference.  

At KJMLAW Partners, we specialize in estate planning, trust administration, and probate law, and we’re here to provide expert guidance tailored to your unique situation. Contact us at 626-565-5680 for guidance and support in navigating inheritance claims responsibly. Our team of experienced trust litigation attorneys is here to help you every step of the way.