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Trustee Duties: Does my Trustee working for free affect their Standard of care?

By December 16, 2025No Comments
trustee Standard of care

Table of Contents

What Beneficiaries Can Do Next                                                                                                                                                                           Related Resources

Key Takeaways

  • A trustee’s standard of care under California law does not change based on whether the trustee is paid.
  • Family trustees and unpaid trustees are held to the same legal standards as professional trustees unless the trust explicitly states otherwise.
  • A trustee who fails to meet the required standard of care may be personally liable for losses to the trust.
  • Beneficiaries may petition the court for remedies such as surcharge, interest, or removal of the trustee.
When a trustee claims they are not required to perform at a high level because they are unpaid, beneficiaries often feel unsure about their rights. Under California law, a trustee’s standard of care does not depend on whether the trustee is compensated.

What Is the Trustee’s Standard of Care Under California Law?

Under the California Probate Code, a trustee is a fiduciary and must administer the trust with reasonable care, skill, and caution. Essentially acting  as a financial babysitter. This includes duties such as:
  • Managing trust assets prudently
  • Keeping beneficiaries reasonably informed
  • Avoiding self-dealing and conflicts of interest
  • Following the terms of the trust exactly
If the trustee has special skills or expertise, California law holds them to an even higher standard. This standard exists to protect beneficiaries from mismanagement, delay, or neglect.
A trustee who fails to meet this standard breaches their fiduciary duty. When that breach causes financial harm to the trust or its beneficiaries, legal consequences may follow.
At The Grossman Law Firm, Attorney Scott Grossman helps beneficiaries throughout California hold trustees accountable when trust administration falls below legal standards. This article explains how trustee compensation works, what the trustee’s standard of care means under California law, and what beneficiaries can do when that standard is breached.

Does a Trustee Working for Free Affect the Standard of Care?

No. A trustee’s lack of compensation does not lower the standard of care under California law.
It is common for family members to serve as trustees without pay, either by personal choice or due to family pressure. However, unless the trust document specifically excuses or limits performance based on compensation or experience, the trustee must meet the same legal standards as any other trustee.
That means:
  • An unpaid trustee cannot justify poor administration by claiming they are volunteering
  • Inexperience does not excuse mistakes that harm the trust
  • Beneficiaries are entitled to proper management regardless of trustee compensation
California courts consistently hold that fiduciary duties exist independent of whether the trustee is paid.

Common Problems with Unpaid or Inexperienced Trustees

While many unpaid trustees act in good faith, problems often arise due to a lack of knowledge or attention. Common issues include:
  • Failure to invest trust assets prudently
  • Missed deadlines and delayed distributions
  • Poor recordkeeping or refusal to provide accountings
  • Ignoring beneficiary requests for information
  • Attempting to reduce compensation retroactively to excuse mistakes
Good intentions do not prevent liability. If the trustee’s conduct falls below the legal standard and causes loss, beneficiaries may have valid claims.

What Happens When a Trustee Breaches the Standard of Care?

When a trustee breaches their fiduciary duty, the trust itself suffers the harm. Under California law, beneficiaries may seek court intervention to recover losses and prevent further damage.
Available remedies may include:
  • Surcharge against the trustee for financial losses
  • Prejudgment interest on mismanaged funds
  • Post-judgment interest after a court ruling
  • Removal of the trustee in serious cases
Courts focus on whether the trustee’s conduct caused harm, not whether the trustee intended to do wrong. At The Grossman Law Firm, Attorney Scott Grossman represents beneficiaries throughout California in trust litigation to pursue these remedies and hold trustees financially accountable when fiduciary duties are breached.

What Beneficiaries Can Do Next

If you believe a trustee has breached their standard of care, early action matters. Delays can make losses harder to recover and allow mismanagement to continue.
Beneficiaries should:
  1. Review the trust document carefully
  2. Document missed duties, delays, or financial losses
  3. Request information or accountings in writing
  4. Evaluate whether court intervention is necessary
If you suspect your trustee isn’t acting in your best interest, don’t wait. Explore 20 Ways Your Trustee May Be Breaching Their Fiduciary Duties to learn the most common warning signs and what you can do about them.

FAQ

Does an unpaid trustee have less responsibility?
No. California law does not reduce fiduciary duties based on compensation.
Can a trustee lower their pay because they made mistakes?
Reducing compensation does not eliminate liability for breaches that caused harm.
Can beneficiaries remove an unpaid trustee?
Yes. Compensation status does not affect the court’s authority to remove a trustee for misconduct or mismanagement.
What if the trustee claims they are just a family member helping out?
Family status does not excuse failure to meet fiduciary duties under California law.

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. Attorney Scott Grossman focuses exclusively on holding trustees accountable when trust administration falls below legal standards.
Call (888) 443-6590 or fill out our Get Help Now form to take the next step.
Our Intake Specialists will 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.
Originally Published July 14, 2022