It depends on the terms of the trust. The trust needs to be reviewed. You should contact a local attorney immediately and bring them the trust.
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I agree with Attorney Shultz. You have not provided enough information to really determine what is happening. The trust provisions are very likely to answer your questions. If they are not clear to you, then you should have a trust attorney review the terms to help you determine where you stand.
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So there are TWO Life Estates - which essentially means that the current Life Estate holder cannot sell the property, as it would go to the daughter (for her life) before it ends up in the outright ownership of the Grandchildren (as tenants-in-common). I'd get a California Estate Planning to review the Trust document and provide guidance. See Avvo.Com under Find-A-Lawyer. Good Luck.