Nature of Proceedings: Petition to Approve 20th Accounting/Fees (UPDATED 6/21/2021) Appearances required. The following discrepancies are noted for the Court after supplement: Discrepancy no 1: Trust estate lost $46,852.08 from the sale of stocks at a loss, without explanation. A supplement is required to explain why the trustees should not be surcharged for a breach of fiduciary duty (prudent investing, Prob. Code, §16046). Supplemental briefing is unpersuasive. Capitol gains tax is currently 20%. Petitioner failed to show why paying a 20% gain would harm the trust more than a sale of assets to negate the tax. The trust value at the end of the accounting period is less than the value of the trust at the end of the 2018 reporting period. Thus, the trust has lost value over the last three years, instead of being productive pursuant to the trustee’s duty to make trust assets productive. (Prob. Code, § 16007.) At minimum, petitioner should show how the overall investment strategy benefits
Hearing Date
June 23, 2021
Department
Judge Timothy StaffelDepartment 3 SM-Cook312-C East Cook Street P.O. Box 5369 Santa Maria, CA 93456-5369
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Nature of Proceedings: Petition to Approve 20th Accounting/Fees (UPDATED 6/21/2021) Appearances required. The following discrepancies are noted for the Court after supplement: Discrepancy no 1: Trust estate lost $46,852.08 from the sale of stocks at a loss, without explanation. A supplement is required to explain why the trustees should not be surcharged for a breach of fiduciary duty (prudent investing, Prob. Code, §16046). Supplemental briefing is unpersuasive. Capitol gains tax is currently 20%. Petitioner failed to show why paying a 20% gain would harm the trust more than a sale of assets to negate the tax. The trust value at the end of the accounting period is less than the value of the trust at the end of the 2018 reporting period. Thus, the trust has lost value over the last three years, instead of being productive pursuant to the trustee’s duty to make trust assets productive. (Prob. Code, § 16007.) At minimum, petitioner should show how the overall investment strategy benefits