Table of Contents
- Key Takeaways
- Why Understanding Co-Trustee Duties Matters
- What Are a Co-Trustee’s Legal Duties?
- How Should Co-Trustees Share Responsibilities?
- What If a Co-Trustee Fails to Act?
- What Does It Mean to Prevent or Redress a Breach of Trust?
- Will the Situation Fix Itself?
- Related Resources
- FAQ
- Next Steps
Key Takeaways
- Co-trustees in California share equal fiduciary responsibilities under the law.
- Each co-trustee must actively participate in administering the trust or stay fully informed.
- Failing to prevent or redress a breach of trust can lead to liability—even for an “innocent” trustee.
- California law does not accept ignorance as an excuse for a co-trustee’s failure to act.
Why Understanding Co-Trustee Duties Matters
Being named a co-trustee means you are responsible for managing someone else’s property according to the trust’s terms and California law. But what happens when one trustee does all the work—or worse, when one trustee fails to act?
At The Grossman Law Firm, we’ve helped California co-trustees and beneficiaries navigate these complex trust disputes. Attorney Scott Grossman handles probate and trust litigation matters all over the state of California and can help you understand your rights and obligations when a co-trustee isn’t doing their part.
What Are a Co-Trustee’s Legal Duties?
Under California Probate Code §§ 16000–16015, co-trustees have the same fiduciary duties as a sole trustee, including:
- Managing trust assets prudently
- Filing necessary tax returns
- Making timely and proper distributions to beneficiaries
- Keeping records and providing accounting
Each co-trustee is expected to participate in the administration of the trust. The law also requires a co-trustee to prevent the other from committing a breach of confidence, and to take reasonable steps to fix it if it occurs.
How Should Co-Trustees Share Responsibilities?
While co-trustees aren’t expected to do everything together or split the work exactly evenly, both must be involved. At minimum:
- Each co-trustee should stay informed about the trust’s administration
- Decisions should be communicated and agreed upon
- Records should be accessible to all co-trustees
- Both co-trustees should sign off on significant actions, like selling real estate
A co-trustee cannot simply delegate everything to the other and claim ignorance later. Inaction can lead to personal liability if something goes wrong.
What If a Co-Trustee Fails to Act?
If one co-trustee is taking complete control and excluding the other—or ignoring their duties entirely—it creates risk for the trust and its beneficiaries.
An “inactive” co-trustee may still be liable if:
- They failed to stay informed
- They didn’t object to improper actions
- They didn’t take steps to stop or reverse a breach
For example, if one trustee deposits trust funds into their personal account while the other trustee does nothing, both may be held accountable. This is why effective communication, checks and balances, and thorough documentation are essential.
If your trustee has been violating their fiduciary duty, you might want to consider removing them. The Grossman Law Firm can provide guidance during this complex time. For more information, please refer to our article, “How to Remove a Trustee in California Probate Court.”
What Does It Mean to Prevent or Redress a Breach of Trust?
California law requires a co-trustee to act if they know—or should know—that the other trustee is breaching their duties.
Preventing a breach may involve:
- Requiring joint signatures on checks
- Monitoring monthly bank statements
- Confirming that sale proceeds are deposited into trust-owned accounts
Redressing a breach means taking reasonable steps to fix the issue. It could be:
- Asking the co-trustee to return improperly used funds
- Correcting the records or asset titles
- Filing a petition in probate court to recover trust property or remove the breaching trustee
Failing to act could cost you—and the trust’s beneficiaries—significantly.
Will the Situation Fix Itself?
No. If one trustee ignores their responsibilities or mishandles trust property, you cannot afford to wait. Hoping things will resolve on their own is risky and rarely effective.
If your inheritance is at stake or you suspect a co-trustee is breaching their fiduciary duties, you may need to:
- Request a formal accounting
- Demand corrective action
- Petition the court for trustee removal or surcharge
The Grossman Law Firm can help you take the necessary legal steps to protect your rights and enforce the terms of the trust. It is vital to act as soon as possible; any delay could jeopardize your inheritance.
Related Resources
- 20 Ways Your Trustee Can Be Breaching Their Fiduciary Duties
- How to Remove a Trustee in California
- What Is a Trustee’s Duty to Account?
- When a Trustee has a Conflict of Interest
- Understanding Trust Litigation Guide
FAQ
Can co-trustees act independently?
Only if the trust document explicitly allows it. Otherwise, co-trustees must act jointly and participate in all major decisions regarding the trust.
What happens if a co-trustee is uncooperative?
The other trustee may need to petition the probate court for instructions, removal, or surcharge if cooperation becomes impossible or harmful to the trust.
Is a co-trustee liable for the other’s actions?
Potentially, yes. If a co-trustee failed to prevent or address a breach of trust, they could be personally liable for damages, even if they didn’t actively commit the breach.
What is a breach of trust?
Any violation of a trustee’s legal duties, such as misusing funds, failing to distribute assets, or failing to keep beneficiaries informed.
Next Steps
At The Grossman Law Firm, we assist beneficiaries and heirs throughout California in enforcing their rights in trust litigation.
Call (888) 443-6590 or fill out our Get Help Now form. Our Intake Specialists can evaluate your case to assess your situation at no cost to you. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.
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