Key Takeaways
- Trustees of irrevocable trusts in California must follow strict fiduciary duties.
- The trustee must act in the best interests of the beneficiaries at all times.
- Breaching these duties can result in legal consequences and even personal liability.
- The Grossman Law Firm helps beneficiaries throughout California take action when trustees fail to perform their duties.
Duties of a Trustee of an Irrevocable Trust
Understanding the Role of a Trustee in an Irrevocable Trust
At The Grossman Law Firm, we regularly help beneficiaries understand their rights and the obligations of the trustee. One of the most critical roles in any trust, especially an irrevocable one, is that of the trustee.
An irrevocable trust cannot be modified or revoked once it’s created, which makes the trustee’s responsibilities even more critical. The trustee must manage and protect the trust property according to the trust’s terms and in the best interest of the beneficiaries.
Trustee Legal Obligations Under California Law
Under the California Probate Code, a trustee of an irrevocable trust takes on serious legal duties. These are not casual responsibilities—trustees are legally accountable for how they manage and distribute trust assets.
Some of the trustee’s legal obligations include:
- Managing trust assets with care and skill.
- Keeping trust property separate from their personal assets.
- Providing beneficiaries with accountings.
- Administering the trust in line with its written terms.
If a trustee doesn’t understand or follow California trust law, they can be removed—and in some cases, sued.
The Fiduciary Duties of a California Trustee
The core of every trustee’s role is the fiduciary duty. Under California law, this means the trustee must act with loyalty, fairness, and good faith. These duties are not optional—they are legally binding.
1. Loyalty
A trustee must act solely in the interest of the beneficiaries, not for their own benefit. That means:
- No self-dealing.
- No using trust property for personal gain.
- No favoritism among beneficiaries unless the trust allows it.
Even the appearance of a conflict of interest can lead to legal trouble.
2. Prudence
Trustees must manage trust assets as a reasonably prudent person would. This includes:
- Making sound investment decisions.
- Preserving and growing trust assets when appropriate.
- Seeking professional help when needed (e.g., financial advisors, tax professionals).
3. Impartiality
All beneficiaries must be treated fairly, even if they have conflicting interests. The trustee must avoid favoring one beneficiary over another unless specifically directed by the trust.
4. Duty to Administer the Trust
Trustees must follow the trust document, maintain accurate records, and communicate with beneficiaries. California law requires regular updates, accountings, and complete transparency.
Special Considerations in Irrevocable Trusts
Because an irrevocable trust cannot be changed once established, the trustee’s powers and responsibilities are often broader and more rigid.
Trustees may be authorized to:
- Make or withhold distributions.
- Invest in certain types of assets.
- Terminate the trust under specified conditions.
But they must do so within the boundaries of California law and the specific terms of the trust. There is no room for error, guesswork, or personal judgment outside the scope of the document.
At The Grossman Law Firm, we regularly help clients enforce these standards and hold trustees accountable.
For more information on trustee duties, read our article “20 Ways Your Trustee Can Be Breaching Their Fiduciary Duties,” for an in-depth look at beneficiaries’ rights in California.
What Happens When a Trustee Breaches Their Duties?
When a trustee fails to uphold their fiduciary duties, it’s known as a breach of fiduciary duty. It can include:
- Mismanaging or wasting trust assets.
- Failing to provide proper accounting.
- Favoring one beneficiary over another.
- Using trust property for personal benefit.
If you suspect your trustee is not acting in good faith, it’s essential to act quickly. In California, beneficiaries can bring a petition in probate court to:
- Suspend or remove the trustee.
- Compel the trustee to account.
- Recover damages or trust assets lost due to mismanagement.
Tip: We often see trustees claim they “didn’t know” they were violating their duties. That’s not a valid defense under California law.
Related Resources
- Complete Guide to California Trust Litigation
- How to Remove a Trustee in California
- Can’t Afford a Probate or Trust Attorney
FAQ
What is the difference between a revocable and irrevocable trust?
A revocable trust can be changed or revoked by the grantor during their lifetime. An irrevocable trust generally cannot be changed once it is established, and its terms are binding on the trustee.
Can an irrevocable trust trustee be removed?
Yes. If a trustee breaches their duties, a beneficiary can file a petition in California probate court to suspend or remove the trustee.
What should I do if I suspect the trustee is mismanaging assets?
You should speak with a California trust litigation attorney right away. Trustees who violate their duties can be held legally and financially accountable.
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.
If your trustee is not acting correctly, we can help you:
- Determine if a breach of fiduciary duty has occurred.
- Gather evidence and file a petition in probate court.
- Protect your inheritance and remove the trustee if necessary.
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.