Can You Sue a Trustee for Negligence?

Under the California Probate Code, a trustee is a fiduciary who must administer the trust with reasonable care, skill, and caution. This standard applies regardless of whether the trustee is a professional or a family member.

Trustee negligence occurs when a trustee fails to meet that standard, and the failure causes harm to the trust or its beneficiaries. California law focuses on conduct and results, not intent. A trustee may be negligent even if they believed they were acting appropriately.

Trustees are required to follow the trust terms, manage assets prudently, keep beneficiaries reasonably informed, and avoid conduct that jeopardizes trust property. When those obligations are ignored or mishandled, legal liability may arise. When a trustee’s conduct falls below this legal standard, beneficiaries do not have to navigate the issue alone. The Grossman Law Firm helps California beneficiaries evaluate whether trustee negligence has occurred and what legal steps may be available to protect their interests.

Not every mistake qualifies as negligence. To pursue a claim, beneficiaries must show that the trustee breached a fiduciary duty and that the breach resulted in financial loss or other measurable harm.

Negligence commonly overlaps with breach of fiduciary duty. A trustee who fails to exercise reasonable care, delays administration without justification, or mismanages trust assets may breach duties imposed by both the trust instrument and California law.

Courts evaluate these cases objectively. The question is whether the trustee acted as a reasonably prudent person would have under similar circumstances.

Trustee negligence often appears through patterns of poor administration rather than a single act. Common examples include mismanaging trust investments, failing to distribute assets in accordance with the trust terms, and neglecting required recordkeeping or accounting.

Negligence may also involve allowing trust property to deteriorate, failing to safeguard assets, or ignoring beneficiary communications for extended periods. Over time, inaction alone can cause significant financial damage.

California beneficiaries have clear statutory rights. Trustees must keep beneficiaries reasonably informed about trust administration and provide information relevant to their interests.

When trustees fail to meet these obligations, beneficiaries may petition the probate court for relief. Remedies can include compelling an accounting, ordering corrective action, imposing financial surcharges, or removing the trustee altogether.

For a broader overview, beneficiaries may find it helpful to review 20 Ways Your Trustee May Be Breaching Their Fiduciary Duties, which outlines common violations seen in California trust litigation.

Negligence often becomes apparent through consistent behavior rather than isolated events. Repeated communication failures, unexplained delays, and vague financial explanations are common warning signs.

Lack of transparency is particularly concerning. Trustees who refuse to provide records, delay required disclosures, or provide incomplete information may be in violation of their fiduciary obligations. California law requires openness and accountability, not secrecy.

Before filing a lawsuit, beneficiaries should review the trust document carefully. The trust defines the trustee’s authority, responsibilities, and limitations. Identifying deviations from those terms is essential.

Documenting concerns is equally important. Written communications, financial statements, and missed deadlines can become critical evidence. In some cases, raising concerns directly with the trustee leads to resolution. In others, mediation may offer a structured alternative before court involvement becomes necessary.

Trustee negligence claims are handled in the California probate court. These cases typically begin with a petition alleging breach of fiduciary duty and negligence, supported by evidence of harm.

The court may order remedies such as repayment of losses, removal of the trustee, appointment of a successor, or other corrective measures. Probate courts have broad authority to protect trust assets and beneficiary interests.

Because these cases involve strict procedural rules and evidentiary standards, experienced probate litigation counsel is critical.

Proving negligence requires more than dissatisfaction with a trustee’s decisions. Beneficiaries must establish causation and damages.

Trustees frequently defend these cases by asserting good faith, reliance on professional advice, or compliance with the trust terms. That is why obtaining a copy of the trust and understanding its provisions is essential. Without it, evaluating whether negligence occurred becomes difficult.

Litigation is not always the most effective solution. In some situations, mediation or negotiated resolution can stop ongoing harm while preserving trust assets.

In other cases, beneficiaries may seek removal and replacement of the trustee without pursuing monetary damages. The appropriate approach depends on the severity of the negligence and the risk of continued mismanagement.

In other cases, beneficiaries may seek removal and replacement of the trustee without pursuing monetary damages. The Grossman Law Firm can help you evaluate which remedy best protects the trust and determine whether court intervention is necessary to prevent further harm.

Can a trustee be personally liable for negligence in California?
Yes. Courts may personally surcharge trustees for negligence that causes financial loss.

Is bad intent required to sue a trustee?
No. Negligence focuses on conduct and outcomes, not intent.

Can the court remove a negligent trustee?
Yes. Removal is a common remedy when continued administration threatens the trust.

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 these disputes and understands how trustee negligence cases unfold and how to stop further damage.

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 May 20, 2024