Leader

Probate Code section 17211, subdivision (b) gives the probate court discretion to award attorney fees to a trust beneficiary who “contests the trustee’s account,” if the court determines the trustee’s opposition to the contest was “without reasonable cause and in bad faith.” The trustee’s account here revealed that the trust had remaining assets and no liabilities. The trustee, however, refused to make a final distribution based on a collateral dispute that did not pertain to the trust. The beneficiaries successfully petitioned the probate court for an order compelling the trustee to distribute the remaining assets. The sole question on appeal is whether the court erred by finding section 17211, subdivision (b) is inapplicable as a matter of law because the proceeding does not constitute a contest of the trustee’s account. We answer the question in the affirmative. We reverse the court’s order to the extent it denies the beneficiaries attorney fees, and direct the court to hold further proceedings on the factual issue of bad faith.

FACTUAL AND PROCEDURAL BACKGROUND

In 1991 Glen Cords and Alice Sterling Cords, as settlors and trustees, established a revocable living…