Co-Trustees’ Duties

Key Takeaways
Understanding Co-Trustees’ Duties in California
How Co-Trustees Should Work Together
Preventing a Breach of Trust
Redressing a Breach of Trust
When One Co-Trustee Fails to Act
How The Grossman Law Firm Can Help
Related Resources
FAQ

Key Takeaways

California co-trustees share the same legal duties as a sole trustee under the Probate Code.
Both trustees must participate in the administration of the trust and monitor each other’s actions to ensure compliance.
A co-trustee who ignores misconduct can be held personally liable for breaching the trust.
The Grossman Law Firm assists beneficiaries and co-trustees in resolving trust disputes and enforcing fiduciary duties.

Understanding Co-Trustees’ Duties in California

When two or more individuals are appointed to serve as co-trustees of a California trust, they must follow the same fiduciary duties that apply to any trustee. Under California Probate Code § § 16000–16015, these duties include managing trust assets, filing tax returns, and distributing property in accordance with the trust’s terms.

Each co-trustee must act with reasonable care, skill, and caution to protect the trust’s property. The co-trustees are also required to work together when making decisions about managing or distributing trust assets.

At The Grossman Law Firm, we have represented co-trustees and beneficiaries for more than 20 years in probate and trust litigation across California. We understand how challenging it can be when co-trustees disagree or one trustee fails to meet their responsibilities.

How Co-Trustees Should Work Together

California law requires co-trustees to participate in the administration of the trust. One trustee cannot simply delegate all duties to another or remain uninvolved.

Even if one trustee handles more day-to-day work, the other must stay informed and consent to significant decisions. Co-trustees should establish clear communication and accountability systems, such as:

Requiring both trustees to sign checks for trust expenses or distributions.
Reviewing monthly bank statements and investment reports.
Maintaining accurate records of trust transactions.
Providing regular accounting updates to beneficiaries.

These practices foster transparency and mitigate the risk of a single trustee committing a breach of fiduciary duty.

Preventing a Breach of Trust

Co-trustees have an affirmative duty to prevent one another from breaching the trust. Failing to act when aware of wrongdoing can make both trustees personally liable.

For example:

If one co-trustee transfers trust funds into their personal account, the other must intervene immediately.
When selling trust real estate, both trustees must ensure that the sale proceeds are deposited into a trust-owned account.

Reasonable steps to prevent a breach include monitoring account activity, insisting on joint approval for significant transactions, and consulting a trust litigation attorney if misconduct is suspected.

Redressing a Breach of Trust

When a co-trustee discovers that another trustee has violated their fiduciary duties, they must take action to redress the breach.

It may include:

Persuading the other trustee to return misused or co-mingled funds to the trust account.
Demanding an accounting to clarify discrepancies.
Filing a petition with the probate court to surcharge (financially compensate) the trust for any losses.

Ignoring the problem can expose the innocent trustee to the same liability as the wrongdoer. Taking reasonable steps to correct a breach demonstrates good faith compliance with California law.

When One Co-Trustee Fails to Act

Trust administration often becomes unbalanced when one trustee handles all aspects while the other remains uninvolved. This arrangement might seem convenient—but it’s risky.

If a breach occurs, both trustees can be held accountable, even if one claims ignorance. California courts expect all co-trustees to remain active participants and to oversee each other’s actions.

If you suspect your co-trustee is not fulfilling their duties—or if you are a beneficiary dealing with inactive or negligent co-trustees—contact The Grossman Law Firm. Our team helps clients compel compliance, remove non-performing trustees, and recover damages for breaches of fiduciary duty.

How The Grossman Law Firm Can Help

For over two decades, The Grossman Law Firm has represented beneficiaries and co-trustees throughout California in trust and probate litigation. We help clients:

Enforce co-trustee duties and fiduciary responsibilities
Compel accountings and transparency between trustees
Remove negligent or uncooperative co-trustees
Recover losses caused by mismanagement or breach of trust

The Grossman Law Firm focuses exclusively on California trust and probate litigation. If your co-trustee is failing to act or has breached their duties, we can help you take action and protect your rights.

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.

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.

Related Resources

FAQ

What happens if co-trustees disagree?

Suppose co-trustees cannot agree on trust administration decisions. In that case, either trustee may petition the probate court for guidance or seek to remove the other under California Probate Code §15642.

Can one co-trustee act without the other’s consent?

Generally, no. Unless the trust instrument expressly authorizes independent action, both trustees must approve significant decisions affecting trust property.

Can a co-trustee be removed for misconduct or inaction?

Yes. A beneficiary or co-trustee can petition the court to remove a trustee who has breached fiduciary duties, mismanaged assets, or failed to participate in trust administration.

Originally Published Apr 8, 2022

Co-Trustees’ Duties

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