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My Sibling Is the Trustee and Won’t Sell the Trust House. What Can I Do?

By October 2, 2026No Comments
trustee living in trust property California

When your sibling is both the trustee and the person living in a trust-owned house, getting your inheritance can quickly become complicated.

Maybe the trust says you and your sibling should receive equal shares. But instead of selling the house or buying out your interest, your sibling stays in the property while months pass.

Meanwhile, your inheritance remains tied up in a house you cannot control.

At The Grossman Law Firm, we help California beneficiaries when a trustee delays distributions, mishandles trust property, or puts their own interests first.

Table of Contents

Key Takeaways

  • A trustee must administer the trust according to its terms and California law.
  • Being named trustee does not automatically give someone the right to use trust property for their own benefit.
  • A trustee who is also a beneficiary must still consider the interests of the other beneficiaries.
  • Beneficiaries may ask the probate court to intervene when a trustee refuses to administer or distribute trust property properly.
  • If the trustee’s actions cause a financial loss, more solutions may be available.

My Sibling Is the Trustee and Lives in the Trust House. What Now?

Consider this example.

Rachel and Hannah’s mother creates a trust leaving her estate equally to her two daughters. The primary trust asset is a house worth about $1.6 million.

When their mother dies, Hannah becomes trustee.

Hannah has also been living in the house for several years.

Rachel is approaching retirement. She has spent years planning around the inheritance her mother left her, and her share of the home represents a significant part of the money she expects to use for retirement.

At first, Rachel tries to be patient.

She understands that Hannah may need time to decide whether she can afford to keep the house.

Rachel Tries to Work It Out Without a Lawyer

Rachel proposes several options.

Hannah could refinance or obtain a loan and buy out Rachel’s share. They could agree on another fair buyout arrangement. Or Hannah could sell the property and distribute the proceeds according to the trust.

Hannah says she wants to keep the house.

But she does not apply for financing.

Months pass.

Hannah continues living in the property while Rachel receives nothing.

When Rachel asks when she will receive her share, Hannah reminds her that she is the trustee and says she will deal with the house when she is ready.

That is where the problem changes.

This is no longer simply a disagreement between two sisters over a house. Hannah is also the trustee, which means she has fiduciary duties to Rachel as a beneficiary.

Can a Trustee Live in Trust Property in California?

A trustee living in trust property is not automatically committing a breach.

The trust may specifically permit the arrangement, or other circumstances may justify the trustee’s occupancy.

However, California Probate Code § 16000 requires a trustee to administer the trust according to its terms. Section 16002 also requires the trustee to administer the trust solely in the beneficiaries’ interests. 

A trustee does not get to treat trust property as their own just because they are in charge.

What If the Trustee Is Benefiting While You Wait?

That can create a more serious concern.

Probate Code § 16004 generally prohibits a trustee from using or dealing with trust property for the trustee’s own profit or for a purpose unrelated to the trust. 

California law also requires a trustee managing a trust for multiple beneficiaries to deal impartially with them while considering their differing interests. 

In Rachel’s situation, Hannah receives the immediate benefit of living in the property while Rachel waits for the inheritance the trust provides.

This alone does not prove a breach. But if Hannah refuses to sell, arrange a buyout, pay her share of expenses, or provide information, it is time to take a closer look.

Can a Beneficiary Ask the Court to Force the Trustee to Act?

If a trustee refuses to deal with trust property or move the trust toward distribution, a beneficiary may be able to ask the probate court to intervene.

California Probate Code § 17200 allows a beneficiary to petition the court regarding the trust. Depending on the circumstances, the court may review the trustee’s conduct, determine beneficiary rights, instruct the trustee, or compel the trustee to perform required duties.

In Rachel’s situation, an attorney could review the trust to determine whether Hannah has authority to remain in the house, how the property should be sold or distributed, and what relief Rachel may ask the court to order.

The Grossman Law Firm can evaluate whether court intervention may be necessary to protect your inheritance when a trustee refuses to act in your best interest.

When Trying to Be Reasonable Is No Longer Working

Rachel did what many beneficiaries try to do first.

Rachel talked to her sister and proposed a buyout. She gave Hannah time to find financing. As the months passed, Rachel repeatedly asked when the trust would be distributed.

Nothing changed.

Meanwhile, Rachel was getting closer to retirement without access to a significant part of the inheritance her mother intended her to receive.

That is when Rachel decided she could no longer handle the dispute on her own and contacted The Grossman Law Firm.

In a situation like Rachel’s, Attorney Scott Grossman can review the trust, title records, communications between the beneficiaries, financial information, and the trustee’s handling of the property to determine what legal action may be appropriate.

Sometimes protecting an inheritance requires more than another conversation with the trustee.

Can a Trustee Be Responsible for Financial Losses?

Yes.

If a trustee breaches the trust and causes a financial loss, Probate Code § 16440 allows the trustee to be charged, when appropriate.

For example, if a trustee improperly remains in a trust-owned home and delays a sale or distribution, the resulting harm could include lost rental income, unnecessary carrying costs, or other measurable losses. The court may order the trustee to pay damages and/or surcharges. Back rent can also be collected. 

Not every delay means you have a claim. The main questions are whether the trustee breached a legal duty and whether that caused a financial loss.

If you believe a trustee’s actions have reduced the value of your inheritance, The Grossman Law Firm can review the trust, financial records, property history, and other evidence to determine whether you may have grounds to seek financial recovery.

FAQ

Is it possible for a trustee to refuse to sell trust property because they live there?

Not simply because they live there; the trustee must follow the trust and fulfill their fiduciary duties. Whether the property must be sold depends on the trust terms and circumstances.

Can a trustee favor themselves over another beneficiary?

A trustee must administer the trust in the beneficiaries’ interests and deal impartially with multiple beneficiaries. Using trust property for personal benefit can raise fiduciary-duty concerns. 

Can I remove my sibling as trustee?

Potentially. Removal is one remedy that may be available when a trustee breaches trust or other statutory grounds exist. It is not automatic simply because beneficiaries disagree.

How The Grossman Law Firm Can Help

If your sibling controls trust property while your inheritance remains out of reach, don’t keep waiting; act now.

Attorney Scott Grossman can review the trust and the trustee’s conduct to determine whether you have grounds to ask the court to protect your inheritance, compel action, recover funds, or pursue another appropriate remedy.

At The Grossman Law Firm, we help beneficiaries and heirs throughout California enforce their rights in probate and trust litigation.

Call (888) 443-6590 or fill out our Get Help Now form to take the next step.

Our Intake Specialists can evaluate your case and assess your situation at no cost. We will schedule qualifying cases for a Free Phone Consultation with Attorney Scott Grossman.