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TrustTrustee Duties

How Serious Is a Breach of Fiduciary Duty?

By January 2, 2026January 6th, 2026No Comments
Breach of Fiduciary Duty

Table of Contents

Key Takeaways

  • The law treats a breach of fiduciary duty as a serious legal violation.
  • California law holds trustees, executors, and other fiduciaries to strict standards of loyalty, care, and transparency.
  • Even negligence or delay, without bad intent, can constitute a breach.
  • California probate courts have broad authority to remove fiduciaries and impose financial penalties.
  • Early legal action often prevents additional losses and strengthens a beneficiary’s position.

What Is a Fiduciary Duty Under California Law?

Under the California Probate Code, a fiduciary is legally required to act in the best interests of the beneficiaries at all times. This obligation is not discretionary. Fiduciary duties are enforceable legal standards that govern how estates and trusts must be administered.
In probate and trust matters, fiduciary duties typically include:
  • Acting loyally and without conflicts of interest
  • Managing assets prudently and responsibly
  • Following the terms of the trust or will exactly
  • Keeping beneficiaries reasonably informed
  • Avoiding self-dealing or personal benefit
California courts apply these duties strictly. A fiduciary is not judged based on good intentions, but on whether their actions complied with the law and caused harm to the estate or beneficiaries.
When a fiduciary fails to meet these legal obligations, beneficiaries often need court intervention to protect trust or estate assets. The Grossman Law Firm helps beneficiaries throughout California evaluate potential fiduciary breaches and take decisive legal action to enforce their rights under the Probate Code.

Who Owes Fiduciary Duties in Probate and Trust Matters?

Several roles commonly carry fiduciary obligations in California probate and trust administration.

Executors and Administrators

An executor (named in a will) or administrator (appointed when there is no will) oversees the probate estate. This role includes collecting assets, paying debts, and distributing property. Executors and administrators must act impartially and cannot favor one beneficiary over another.

Trustees

A trustee manages trust assets in accordance with the trust’s terms and California law. Trustees are held to some of the highest fiduciary standards. Delay, poor communication, or improper asset management can all trigger liability.

Agents Acting Under Powers of Attorney

Agents operating under a power of attorney owe fiduciary duties while the principal is alive. If their actions affect later probate or trust administration, those actions may still be scrutinized by the court.

Professional Fiduciaries

Professionals such as financial advisors, attorneys, or accountants may also hold fiduciary duties if they manage or advise on matters related to the estate. These individuals are obligated to provide expert, impartial advice and act in the best interests of the beneficiaries.

What Qualifies as a Breach of Fiduciary Duty?

A breach occurs when a fiduciary fails to meet their legal obligations. California law does not require fraud or intentional wrongdoing. Ordinary negligence or inaction may be enough.

Self-Dealing and Conflicts of Interest

Self-dealing occurs when a fiduciary benefits personally from their position. Examples include purchasing trust property at a discount, paying themselves excessive fees, or favoring their own inheritance.

Mismanagement of Assets

Fiduciaries must manage assets prudently. Failure to invest appropriately, allowing property to deteriorate, or failing to meet tax obligations may constitute a breach.

Failure to Provide Information

Beneficiaries are entitled to information about trust or estate administration. Refusing to provide accountings, delaying disclosures, or withholding records often violates California law.

Negligence or Incompetence

Missing court deadlines, failing to file required documents, or misunderstanding basic fiduciary responsibilities can expose a fiduciary to liability, even without malicious intent.
Many beneficiaries recognize these warning signs only after significant damage has already occurred. The Grossman Law Firm routinely reviews the conduct of trustees and executors to identify breaches early and take action before further losses compound.
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.

How Serious Is a Breach of Fiduciary Duty?

California probate courts treat breaches of fiduciary duty seriously. The court’s primary focus is on protecting beneficiaries and preserving assets. Even relatively small breaches can escalate if left unaddressed.

The seriousness depends on factors such as:

  • The financial harm caused
  • Whether the breach was ongoing
  • Whether the fiduciary concealed misconduct
  • Whether trust assets were lost or misused
Courts do not excuse breaches simply because the fiduciary was inexperienced or overwhelmed.
Because even a single breach can expose beneficiaries to lasting financial harm, early legal guidance often changes the outcome. The Grossman Law Firm represents beneficiaries in high-stakes fiduciary disputes where delay, mismanagement, or self-dealing threatens the estate.
When a breach is proven, California courts have broad authority to impose remedies.

Removal of the Fiduciary

Courts frequently remove trustees or executors when misconduct, delay, or conflicts of interest threaten the proper administration of an estate.

Surcharge and Financial Liability

Courts may require a fiduciary to personally repay losses, return improperly taken assets, or compensate beneficiaries for diminished value.

Interest and Fee Shifting

Courts may impose prejudgment or post-judgment interest and, in some cases, order the fiduciary to pay the beneficiaries’ legal fees.

Criminal Exposure

In extreme cases involving fraud or embezzlement, criminal charges may apply. These cases are less common but carry severe consequences.

What Beneficiaries Can Do If a Fiduciary Breaches Their Duties

Timing matters. Delay often increases financial damage and makes recovery more difficult.
Common legal actions include:
  • Petitioning for an accounting
  • Compelling proper administration
  • Seeking the removal of the fiduciary
  • Pursuing surcharge and damages
California probate courts can intervene early when beneficiaries act promptly.
Not every remedy is appropriate in every case, and strategy matters. The Grossman Law Firm guides beneficiaries through California probate court procedures to pursue accountings, removals, and financial recovery tailored to the specific breach involved.

FAQ

Does a fiduciary need bad intent to be liable?
No. California law focuses on conduct and harm, not intent.
Can a trustee be removed solely for delay?
Yes. Unreasonable delay may justify removal if it harms beneficiaries.
Are beneficiaries entitled to trust records?
Yes. Trustees must keep beneficiaries reasonably informed and provide accountings when required.
How long do beneficiaries have to act?
Deadlines vary. Early legal review is critical to avoid statute-of-limitations issues.

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 resolving fiduciary disputes involving trustees, executors, and estate administrators.
Call (888) 443-6590 or fill out our Get Help Now form to take the next step.
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 January 2, 2025