People have special, even valuable, personal property that they wish to hold in further trust after they die for the benefit of their family.

Examples include paintings, books, tools, guns and vehicles.

How are such items legally controlled and managed to achieve the owner’s intended purpose(s) after the owner’s death?

Also, who gets to make discretionary decisions when foreseen and unforeseen situations arise that necessitate such decisions to be made?

When will the trust terminate and how will the assets be distributed (or sold)? Let’s discuss.

Consider a person who is a professional artist and wants to keep his valuable artwork (paintings) and art book collections in further trust for his grandchildren, who have artistic talents.

Second, consider a mechanic who wants to keep his special tradesman tools for shared use by his two children (also mechanics).

Third, consider a hunter who wants to keep his hunting rifles for his children.

Lastly, consider a person who owns one or more collectible vehicles (e.g., a Ford Model T) that he brings to car festivals.

In each example, the owner sees the value in not selling such valuables immediately or giving them to one family member but instead wants them kept for the shared use by certain relatives.

In California, a trust can hold assets for up to 90 years after the death of the settlor or owner.

At death, the trust is irrevocable and cannot be amended unless another person is given a power of revocation or amendment. The terms of the trust must be carried out strictly according to its own terms. Such terms can give discretion to the trustee or another person.

The trust assets are assigned and titled (if title and/or registration are involved) in the name of the trustee. The trustee controls and manages the custody and the use of the trust assets. How trust assets are allowed to be used vary according to the assets involved and the settlor’s intentions.

For example, the paintings might be held as a single collection at a specific location (like an art studio), to be sold gradually and the sale proceeds distributed to help pay higher education expenses of the trust beneficiaries (e.g., grandchildren).


Next, when foreseen and unforeseen situations arise that required discretionary decisions to be made, the trust may either authorize the trustee to use his or her own judgment or else, under recent California law, may appoint a trust director to make such discretionary decisions.

The trust will provide the trust director with a power of direction (authority) to direct the directed trustee — with custodial control and administrative duties respecting the trust assets — when decisions are made that are within the scope of the trust director authority.

For example, the trust director may have authority to direct the sale of paintings and authority to direct the use of the sale proceeds.

The directed trustee is required to follow such directions unless to do so would be a willful breach of the trustee’s own duty to the settlor and to the beneficiaries.

For example, if the trust director were to direct that the paintings be sold for well below their value then the directed trustee may see this as a willful breach of trust and petition the court for instructions on whether to obey such direction.

Lastly, the personal property trusts will say when the trust terminates and what then happens to the trust assets.

For example, the art trust may terminate when the last painting is sold and the sale proceeds fully distributed for the education of the grandchildren. The conditions for trust termination vary with the type of assets administered and the trust’s purpose. The trust, of course, will say whether assets are sold and who receives the trust assets or their sale proceeds.

The foregoing discussion is not legal advice. Consult a qualified attorney for guidance.

Dennis A. Fordham, attorney, is a state bar-certified specialist in estate planning, probate and trust law. His office is at 870 S. Main St., Lakeport, Calif. He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. and 707-263-3235.