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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Appears to be true Posted by Rob on June 17, 2009 at 3:49 PM In Reply to: Re: Who can be a trustee of a THT? posted by Lughead on June 15, 2009 at 9:00 PM Lughead, after some enjoyable reading of the Professional Fiduciaries Act in the Business and Professions Code, It turns out he was right. You are covered in being a trustee of more than three trusts at a time. Only if the trustee has a 10% or greater benificial interest. : Have the attorney quote the chapter and verse of the code/statue that prohibits this ... his opinion does not matter ... : what the law consists of does : i'd be very surprised if he is correct ... seems the title cos would know about this and not insure title if there were issues : : : Recently an attorney wrote this to me on who could be a trustee. : : "The big "sleeper" issue that no one in the industry seems to be aware of are the California laws limiting who can serve as a trustee of a trust (or the agent under a power of attorney). In short, 1) for an individual to serve as a trustee of three or more trusts (and/or powers of attorney) for people to which s/he is not directly related, must be licensed as a "Private Fiduciary." The requirements for this license are far more difficult than a real estate broker; and, 2) for a corporation to serve as a trustee, it must be licensed under the Department of Financial Institutions as a trust company (similar to a bank); and, 3) no other kind of entity (such as a LLC) is authorized to act as a trustee in California. There is an exception for California licensed attorneys to act as a trustee, so I'm investigating whether that can be done via a law coporation corporation as well -- and then maybe jump on the business opportunity if there is one." : : : : For years I been using one my LLC's or a trusted friend for my trusts. Can any one advise on this issue? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Lughead, after some enjoyable reading of the Professional Fiduciaries Act in the Business and Professions Code, : It turns out he was right. You are covered in being a trustee of more than three trusts at a time. Only if the trustee has a 10% or greater benificial interest. : : Have the attorney quote the chapter and verse of the code/statue that prohibits this ... his opinion does not matter ... : : what the law consists of does : : i'd be very surprised if he is correct ... seems the title cos would know about this and not insure title if there were issues : : : : : Recently an attorney wrote this to me on who could be a trustee. : : : "The big "sleeper" issue that no one in the industry seems to be aware of are the California laws limiting who can serve as a trustee of a trust (or the agent under a power of attorney). In short, 1) for an individual to serve as a trustee of three or more trusts (and/or powers of attorney) for people to which s/he is not directly related, must be licensed as a "Private Fiduciary." The requirements for this license are far more difficult than a real estate broker; and, 2) for a corporation to serve as a trustee, it must be licensed under the Department of Financial Institutions as a trust company (similar to a bank); and, 3) no other kind of entity (such as a LLC) is authorized to act as a trustee in California. There is an exception for California licensed attorneys to act as a trustee, so I'm investigating whether that can be done via a law coporation corporation as well -- and then maybe jump on the business opportunity if there is one." : : : : : : For years I been using one my LLC's or a trusted friend for my trusts. Can any one advise on this issue? [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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