A California investor creates an inter vivos (living) trust to hold multiple rental properties. The trust is irrevocable and names the investor's three adult children as beneficiaries. Under California law, who has management authority over the trust properties?
Correct Answer
D) The trustee named in the trust document has management authority and fiduciary duties to the beneficiaries
Under California Probate Code §16000 et seq., the trustee of an irrevocable trust has management authority over trust property and owes fiduciary duties to the beneficiaries. The trustee must manage the property prudently, maintain records, and distribute income and principal according to the trust terms. The trustor of an irrevocable trust generally cannot retain management control.
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Eminent domain is the government's constitutional right to take private property for public use, provided the owner receives just compensation. It is also known as condemnation.
An encroachment occurs when a building, structure, or improvement illegally extends onto another person's property or beyond a setback line. It is a physical intrusion, not a right to use the land.
An environmental impact statement (EIS) is a detailed report required for major federal projects or actions that may significantly affect the environment. It is mandated by the National Environmental Policy Act (NEPA).
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