Giraldin v. Giraldin

Summary

The California Supreme Court considers whether remainder beneficiaries of a revocable trust have standing, after the settlor's death, to sue the trustee for breaches of fiduciary duty committed while the trust was revocable. The court concludes that beneficiaries may challenge breaches of the trustee's duty to the settlor to the extent those breaches harmed their interests, and reverses the Court of Appeal's contrary judgment.

Holdings

1. After the settlor of a revocable trust dies, the beneficiaries have standing to assert that the trustee breached the fiduciary duty owed to the settlor during the settlor's lifetime, to the extent the breach harmed the beneficiaries' interests.
2. The children, as contingent beneficiaries, need not wait until Mary Giraldin's death to bring the action.
3. The Supreme Court decided standing only and expressed no opinion on the merits, statute of limitations, or laches issues.

Questions Presented

1. Whether, after the settlor of a revocable inter vivos trust dies and the trust becomes irrevocable, contingent or remainder beneficiaries have standing to sue the trustee for breach of the fiduciary duty owed to the settlor during the period of revocability.
2. Whether the beneficiaries must wait until the death of an intervening lifetime beneficiary before asserting such claims.
3. Whether the Court of Appeal properly resolved the standing issue without deciding the remaining merits and limitations issues.

Disposition

reversed_and_remanded