TrustTrustee Duties

Trustee Mismanagement in California: When to File a Petition

By August 12, 2026No Comments
trustee mismanagement

Table of Contents

Key Takeaways

As a trust beneficiary, you deserve to know what is happening with trust property. If assets seem to be missing, the trustee will not share records, or the figures do not make sense, it is reasonable to wonder if the trustee is mismanaging the trust.
In California, beneficiaries have options for obtaining information and ensuring the trustee does their job. Sometimes, this means asking the probate court to step in.
At The Grossman Law Firm, Attorney Scott Grossman represents beneficiaries across California in trust cases involving trustee misconduct, missing assets, problems with accountings, and other breaches of duty.
  • California beneficiaries can petition the probate court when serious concerns arise about a trustee’s administration of a trust.
  • A petition can ask the court to compel an accounting, review the trustee’s actions, order the trustee to perform their duties, or address a breach of trust.
  • If misconduct caused financial harm, the court may order the trustee to repay losses or restore trust property.
  • Serious trustee mismanagement can also support a request to remove or suspend the trustee.
  • Suspecting misconduct and proving it are different. Financial records, communications, accountings, and other evidence can help establish what happened.

What Is Trustee Mismanagement?

Not every disagreement with a trustee amounts to misconduct. Trustees often have discretion under the trust, and beneficiaries may disagree with how that discretion is exercised.
Trustee mismanagement becomes a greater concern when the trustee fails to properly protect or administer trust property.
Warning signs may include:
  • Trust assets that cannot be accounted for
  • Unexplained withdrawals or transfers
  • Property sold under questionable circumstances
  • Personal use of trust property
  • Failure to keep adequate financial records
  • Refusal to provide beneficiaries with information
  • Long, unexplained delays in administering or distributing the trust
  • Investments or transactions that appear to benefit the trustee personally
California law requires trustees to account to certain beneficiaries at least annually, upon termination of the trust, and upon a change of trustee, subject to statutory exceptions.
Not having information does not always mean something is wrong. But if a trustee keeps refusing to explain what happened to trust assets, it may be time for beneficiaries to take further action.

When Can a Beneficiary File a Petition?

California Probate Code section 17200 allows a beneficiary to petition the probate court concerning the internal affairs of a trust. The statute gives the court authority to address a wide range of trust administration disputes.

What Can a Beneficiary Ask the Court to Do?

Depending on the facts, a beneficiary may ask the court to:
  • Review the trustee’s accounting and conduct
  • Determine the trustee’s duties
  • Order the trustee to provide trust information
  • Compel the trustee to provide an accounting
  • Instruct the trustee to take a particular action
  • Remove or appoint a trustee
  • Address a breach of trust
A beneficiary does not necessarily need to wait until all of the money is gone before asking for court intervention. California Probate Code section 16420 allows beneficiaries to seek remedies when a trustee has committed or threatens to commit a breach of trust.

What Can the Court Do About Trustee Mismanagement?

The older version of this article focused primarily on bringing a civil conversion claim if an accounting showed theft. California trust law provides beneficiaries with a much broader range of potential remedies.
Under Probate Code section 16420, a court may order appropriate relief for a breach of trust, including requiring the trustee to perform their duties, stopping a threatened breach, requiring repayment, appointing a receiver or temporary trustee, reducing trustee compensation, or removing the trustee. The statute also permits certain remedies aimed at tracing and recovering wrongfully transferred trust property or its proceeds.
The right solution depends on what actually happened and what proof you have.

Can the Court Remove the Trustee?

Yes, but removing a trustee is a serious step and there must be a legal reason for it.
California Probate Code section 15642 specifically identifies breach of trust as one basis for removing a trustee. Other grounds include situations in which the trustee is unfit to administer the trust, fails or declines to act, receives excessive compensation, or other good cause exists.
If trust property or a beneficiary’s interests may suffer loss while a removal petition is pending, the court also has authority, in appropriate circumstances, to suspend the trustee’s powers or require that trust property be surrendered.

What Should You Do If You Suspect Trustee Mismanagement?

Start by gathering the information you already have.
Keep copies of trust documents, accountings, bank statements, property records, emails, letters, and other communications with the trustee. Make a timeline of questionable transactions and write down any assets you believe are missing.
You do not need to prove the entire case before contacting an attorney.
In fact, determining what happened to the trust property may require obtaining records or seeking court involvement. If a trustee refuses to provide information or you believe assets may be at risk, The Grossman Law Firm can evaluate the circumstances and help determine whether filing a petition is an appropriate next step.

FAQ

Can I Force a Trustee to Provide an Accounting?

In qualifying circumstances, a beneficiary can petition the probate court to compel an accounting when a trustee fails to provide one after a proper request. California Probate Code section 17200 sets out specific requirements for these petitions.

Can a Trustee Be Required to Pay Money Back?

Yes. When a trustee breaches a trust, California law allows a court to order appropriate monetary relief and other remedies to redress the breach.

Does Trustee Mismanagement Always Lead to Removal?

No. As a result, the remedy depends on the nature and seriousness of the misconduct. Courts may order an accounting, repayment, instructions to the trustee, reduced compensation, removal, or other appropriate relief.

How The Grossman Law Firm Can Help

If you suspect a trustee has mishandled trust property, you do not have to determine what happened on your own. The Grossman Law Firm can review the available information, identify potential problems in the trustee’s conduct, and determine whether court intervention may be appropriate.
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 to discuss your situation and find out if your case may qualify for representation.
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: October 15, 2016