Estate planning requires a high degree of precision and understanding of a multitude of technical requirements and rules. Trusts are no exception to this, and each different type of trust often has its own set of rules. Two fundamental issues that must be properly handled when facing trust litigation, as with any court case, are jurisdiction and venue.
Venue refers to the proper geographical place to file a particular trust case. By contrast, jurisdiction means the legal ability or right of a court to actually decide the issues at controversy or the court’s power to make decisions about a particular person’s rights and responsibilities. Pursuant to California Probate Code 17002, in general, the proper venue for a trust is the principal place where the trust’s administration takes place, that is the business place of the trustee. The court which has jurisdiction over issues concerning trusts is the superior court in the place of administration.
Probate Code 17002:
(a) The principal place of administration of the trust is the usual place where the day-to-day activity of the trust is carried on by the trustee or its representative who is primarily responsible for the administration of the trust.
(b) If the principal place of administration of the trust cannot be determined under subdivision (a), it shall be determined as follows:
(1) If the trust has a single trustee, the principal place of administration of the trust is the trustee’s residence or usual place of business.
(2) If the trust has more than one trustee, the principal place of administration of the trust is the residence or usual place of business of any of the cotrustees as agreed upon by them or, if not, the residence or usual place of business of any of the cotrustees.
(Enacted by Stats. 1990, Ch. 79.)
With the increasing mobility of families, the issue very often becomes what if the beneficiary or the trustee lives outside of California? Is California still the proper venue and jurisdiction to bring actions concerning the trust? Typically, the answer will still be yes. California probate code 17003(a) provides that “by accepting the trusteeship of a trust having a principle place of administration in this state, the trustee submits personal to the jurisdiction of the court under this division.”
The business place of the trustee must therefore be California, even if the trustee does not reside in California. The trustee’s place of business may in fact be where his/her attorney is located, or where other trust business is conducted.
Subsection (b) goes on to state that “to the extent of their interests in the trusts,” beneficiaries of a trust whose principal place of administration in California also are subject to the court’s jurisdiction. Similarly, the beneficiary could reside in Michigan, but for purposes of the trust, he or she is subject to California law jurisdiction, if the place of business of the trustee is California. There are ways that California could lose jurisdiction if, for example, a new trustee is appointed outside of California, and the previous trustee also was administering the trust outside of California.
Trusts, like other estate planning methods, require attention to detail and expertise about their requirements in California. Sirkin Law attorneys have extensive experience in assisting our clients. Call us today so we can talk with you about your case.
