Continuing our previous post regarding the Estate of Giraldin (2011) 199 Cal.App.4th 577, 131 Cal.Rptr.3d 799, William Giraldin, a successful businessman and investor, created a revocable trust and named one of his children, Timothy, as trustee. The remainder beneficiaries to the revocable trust were Mary (wife), who was entitled to the benefits of the trust during her lifetime, and their nine children, who would share equally in what remained of the Trust after both William and Mary were deceased. Timothy, the trustee, with William's consent invested the Trust funds into a start-up company that was owned by him and his twin brother (Patrick). At the time of William's death, the Trust's investment in Timothy's start-up was worth very little.
Four of William's children (plaintiffs and respondents) sued Timothy (defendant and appellant) in his capacity as trustee for breach of fiduciary duty. They also sought to remove him as trustee and compel him to account for his actions while acting as trustee. The plaintiffs alleged that Timothy had misspent their father's life savings for his and Patrick's benefit, depriving the other seven children of their benefits from the trust. A court trial was held wherein the court ruled in favor of the plaintiffs. Timothy appealed.
More on this topic in subsequent blog.
*This blog entry was not written by an Attorney and should not be construed as professional legal advice.