Table of Contents
How Co-Trustees Work in California
Co-Trustees Usually Must Act Together
What Happens When Co-Trustees Disagree?
Key Takeaways
- Co-trustees in California generally must act unanimously unless the trust says otherwise.
- A remaining co-trustee may continue to administer the trust if another co-trustee resigns, dies, or is unable to serve.
- Temporary incapacity does not always prevent trust administration when action is necessary to protect trust assets.
- Co-trustee disputes can delay distributions and create trust litigation issues for beneficiaries.
- California trustees should review the trust document carefully before taking action.
How Co-Trustees Work in California
A co-trustee arrangement means two or more people serve together as trustees of the same trust.
Parents often name multiple children as co-trustees because they want decisions handled jointly. Sometimes a professional fiduciary serves alongside a family member. Other trusts appoint co-trustees to create checks and balances.
Under California Probate Code section 15620, co-trustees generally must act unanimously unless the trust instrument provides otherwise.
Many trustees are unaware of this default rule.
One co-trustee may believe they can handle banking, investments, or distributions on their own. Another may think every decision requires discussion and written approval. The trust document typically determines the preferred method.
The Grossman Law Firm regularly assists beneficiaries and families all across California involved in trust disputes. Disagreements over authority, distributions, or administration often result in trust litigation.
Three Important Co-Trustee Rules in California
Rule #1: Co-Trustees Usually Must Act Together
In California, co-trustees generally must act unanimously when exercising trust powers.
That means one co-trustee usually cannot:
- Sell trust property alone
- Make distributions without approval
- Transfer trust assets independently
- Hire professionals on behalf of the trust without authority
- Change investment strategy unilaterally
The trust itself may change this rule. Some trusts allow majority decisions. Others give one trustee tie-breaking authority.
Still, many trusts require co-trustees to work together.
A Real-World Example: One Co-Trustee Took Control
The names and circumstances in this example have been modified for privacy.
After their mother died in Los Angeles County in 2023, sisters Rachel and Melissa became co-trustees of the family trust.
Rachel began handling the administration herself. She sold personal property, changed account access, and delayed providing information to Melissa.
Melissa later learned Rachel had made several decisions without her consent, including transferring funds from a trust account.
The conflict eventually escalated into trust litigation involving accountings, trustee conduct, and disputes over authority.
Situations like this often begin with confusion about what a co-trustee can and cannot do alone.
Rule #2: Remaining Co-Trustees Can Often Continue Serving
Sometimes a co-trustee resigns, passes away, or becomes unable to continue serving.
Many trusts explain exactly how vacancies should be filled. The trust may name successor trustees or describe a process for replacement.
If the trust does not address the issue, California law often allows the remaining co-trustee or co-trustees to continue acting on behalf of the trust.
That can help avoid delays in administration.
For example, trust assets may still require management, bills may need to be paid, and beneficiaries may still be waiting for distributions.
Even so, trustees should proceed carefully. Acting without reviewing the trust terms can create disputes later, especially if beneficiaries question whether the remaining trustee exceeded their authority.
Rule 3: A Temporary Inability to Serve Does Not Always Stop Administration
A co-trustee may become temporarily unavailable for many reasons.
Common examples include:
- Illness
- Travel or absence
- Incapacity
- Medical emergencies
- Communication breakdowns
Under California Probate Code section 15621, remaining co-trustees may sometimes continue acting if immediate action is necessary to accomplish the trust’s purposes or to prevent harm to trust property.
Protecting Trust Assets During Emergencies
In some situations, waiting for an unavailable co-trustee could damage the trust.
For example:
- A property may require immediate repairs
- Insurance coverage could lapse
- Investment accounts may require action during market volatility
- Trust litigation deadlines may be approaching
California law allows flexibility in limited situations to protect the trust and its beneficiaries.
That does not mean one co-trustee gains unlimited authority. Trustees still owe fiduciary duties and must act reasonably and in the beneficiaries’ best interests.
When Co-Trustees Disagree
Disagreements between co-trustees are common in California trust administration.
Some disputes involve communication problems. Others involve much more serious allegations, including:
- Withholding trust information
- Delaying distributions
- Self-dealing
- Mishandling trust assets
- Refusing to cooperate with administration
When disputes escalate, beneficiaries often suffer the consequences first.
Distributions may stall for months or years. Financial records may become difficult to obtain. Trust administration expenses may increase significantly.
In some cases, court intervention becomes necessary to move the administration forward.
Beneficiaries may need to pursue petitions seeking:
- Trust accountings
- Instructions from the court
- Trustee suspension or removal
- Recovery of trust property
- Surcharge claims for financial harm
Early legal intervention can often prevent trust disputes from becoming more expensive and difficult to resolve.
If you suspect your trustee is not acting in your best interests, review our guide: 20 Ways Your Trustee May Be Breaching Their Fiduciary Duties . It explains common warning signs, trustee misconduct, and the legal remedies beneficiaries may pursue under California law.
FAQ
Can one co-trustee act alone in California?
Usually not. Under California law, co-trustees generally must act unanimously unless the trust says otherwise.
What happens if a co-trustee resigns?
The trust document may name a successor trustee. If it does not, the remaining co-trustee may often continue administering the trust under California law.
What if a co-trustee refuses to cooperate?
Beneficiaries or other trustees may need court intervention. California probate courts can issue instructions, compel accountings, suspend trustees, or remove trustees in appropriate cases.
Do co-trustees owe fiduciary duties?
Yes. Co-trustees owe fiduciary duties to the trust beneficiaries and must act in the beneficiaries’ best interests.
Related Resources
How The Grossman Law Firm Can Help
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.
Originally Published Sep 15, 2016