Beneficiaries cannot be bound by an arbitration clause in testamentary trust documents. In Diaz v. Bukey, the California Court of Appeal affirmed a probate court ruling that denied a trustee’s motion to require a beneficiary to arbitrate a petition to remove the trustee. The trustee’s motion was premised on language in the trust that any dispute arising from the trust would be resolved by binding arbitration. The Court of Appeal noted that although arbitration is a favored means of resolving disputes, it may only be compelled for parties to a contract requiring arbitration. The Court found that a trust does not meet the definition of a contract. In order to form a contract, the parties must: a) consent; and b) provide consideration (for example, something of value or a promise to do something). Since trust beneficiaries are not required to consent or provide consideration, they are not parties to a contract and, for that reason, are not bound by an arbitration clause contained in a trust.