20 Ways Your Trustee Can Be Breaching Their Fiduciary Duties

What Is a Fiduciary Duty?

Fiduciary duties are the legal obligations trustees owe to trust beneficiaries. These include:

• Loyalty: Always act in the beneficiaries’ best interests.
• Impartiality: Treat all beneficiaries fairly.
• Accounting: Maintain accurate records and report them regularly.
• Care: Make prudent financial decisions.

A breach of fiduciary duty occurs when a trustee fails to uphold these responsibilities, whether intentionally or due to negligence.

What Happens If a Trustee Breaches Their Duties?

Trustees who violate their fiduciary duties can face serious consequences. California Probate Code §§ 16000–16015 outlines the specific duties and legal standards. Breaches may result in:

• Loss of beneficiary trust
• Financial harm to the estate
• Court-ordered damages
• Trustee suspension or removal

If you suspect your trustee has breached these duties, The Grossman Law Firm can help evaluate your case and guide you through your legal options.

20 ways your trustee can be breaching their Fiduciary Duties: 

1. Duty to Not Delegate Tasks
2. Duty not to become a Trustee of a second Trust if that second trust has some conflict with the First Trust
3. Duty to administer the trust according to its terms
4. Duty to account
5. Duty to separate and identify Trust Property
6. Duty to deal impartially with all Beneficiaries
7. Duty to invest and manage Trust Assets
8. Duty of compensation not impacting the Standard of Care
9. Duty to use special skills
10. Duty to diversify Trust assets
11. Duty to Review Trust Assets
12. Duty to adhere to a strict standard of care
13. Duty to manage Trust Property Productively
14. Duty to Protect and Preserve Trust Property
15. Duty to avoid conflict of interest
16. Duty to Loyalty 
17. Co-Trustee’s Duties 
18. Duty not to demand a release of liability 
19. What is the Prudent Investor Rule? 
20. Beneficiary’s right to get a copy of the trust

Monetary and Non-Monetary Damages

Monetary Damages:

• You may be awarded a surcharge, which compensates you for losses caused by the trustee’s misconduct.
• In cases of bad faith, you could pursue double damages for misappropriated or concealed assets.

Non-Monetary Relief:

• Suspension of a trustee while litigation is pending
• Removal of a trustee who cannot fulfill their duties
• Court instructions requiring the trustee to perform specific actions

At The Grossman Law Firm, we pursue both financial and equitable relief to ensure our clients are made whole.

What to Do If You Suspect a Breach

If your trustee is failing to act in your best interest:

1. Document their conduct: Keep records of all communications and questionable actions.
2. Request an informal accounting: If ignored, escalate.
3. Consult an attorney: Don’t delay. Breaches often escalate into more significant financial harm.

Our team at The Grossman Law Firm has over 20 years of experience protecting beneficiaries in trust litigation.

Removing a Trustee Who Is Not Upholding Their Duties

If a trustee consistently fails to perform their legal duties, California law provides mechanisms for their removal. It may include:

• Filing a petition in probate court
• Providing evidence of misconduct, mismanagement, or breach of fiduciary duty
• Demonstrating harm to the trust or beneficiaries

The court may respond by:

• Suspending the trustee
• Appointing a temporary or permanent replacement
• Ordering the trustee to account for all trust activities

The Grossman Law Firm can guide you through the process of removing an unfit trustee and protecting your inheritance.

For a deeper understanding of your rights and the trustee removal process, explore our California Trust Litigation Guide.

How The Grossman Law Firm Can Help

Trust litigation is complex, but it doesn’t have to be. At The Grossman Law Firm, we help California beneficiaries:

• Identify breaches of fiduciary duty
• Petition the court for trustee suspension or removal
• Recover mismanaged or misappropriated assets

With decades of focused experience, we understand how to build a strong case and resolve trust disputes efficiently and effectively.

Call (888) 443-6590 or fill out our Get Help Now form.

Our Intake Specialists can evaluate your case at no cost to you. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.