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By: Scott Grossman on July 3rd, 2025

Trustee Duties: Five exceptions for your Trustee seeking a release of liability waiver

If you haven't gotten a copy of the trust, there might be other problems in getting your inheritance. By the time you finish reading this guide below, you will know if you need to begin trust litigation and what you can expect moving forward.

 Guide to Trust Litigation

Table of Contents

  • Key Takeaways
  • Introduction
  • What Is a Trustee Release of Liability Waiver?
  • Red Flags: When a Trustee Requests a Liability Waiver
  • What California Law Says About Trustee Waivers
  • Five Exceptions to the Rule
  • Do You Know the Basics of Proper Trust Administration?
  • How The Grossman Law Firm Can Help

Key Takeaways

  • Trustees cannot require a liability waiver as a condition for distributing trust assets when distribution is required by the trust.
  • If your trustee is pressuring you to sign a release, that may be a red flag.
  • There are five legal exceptions where a trustee may seek protection.
  • Beneficiaries should understand their rights before signing anything.
  • The Grossman Law Firm assists beneficiaries in navigating trust disputes and addressing trustee misconduct in California.

Trustee Waivers of Liability: 5 Exceptions You Should Know

You should be familiar with the duties of a trustee and what is expected of them. Has your trustee tried to relieve themselves of liability before distributing the trust? Are you wondering if that’s even allowed? What red flags should you watch to ensure your trustee is not taking advantage of the trust? And what are the five exceptions under California law for a trustee seeking a release of liability waiver?

At The Grossman Law Firm, we educate our clients on their rights as beneficiaries and on trustee responsibilities. Our team helps clients recognize red flags and understand what actions to take when conflicts arise. Knowing your rights can help protect your inheritance—and hold a trustee accountable when necessary.

What Is a Trustee Release of Liability Waiver?

It’s common for beneficiaries to come to us just as they’re about to receive a trust distribution, only to be told they must first sign a liability waiver. It can be a serious red flag. Often, it means the trustee hasn’t provided you with an accounting or meaningful financial information about the trust.

Under California trust law, a trustee may not require a beneficiary to sign a waiver of liability before making a required distribution. If the trust mandates a distribution to you, the trustee cannot require that you waive your right to pursue legal action.

Red Flags: When a Trustee Requests a Liability Waiver

Here are signs your trustee may be acting improperly:

  • You are asked to sign a waiver before receiving your inheritance.
  • You haven’t received a full and transparent accounting of trust activity.
  • The trustee pressures you to sign quickly or without legal advice.
  • The waiver is vague, overly broad, or doesn’t explain what it covers.

If any of these situations apply to you, contact The Grossman Law Firm for guidance.

What California Law Says About Trustee Waivers

The law is clear: if a distribution is required under the terms of the trust, the trustee may not demand a liability waiver as a precondition.

This protection helps ensure that trustees cannot hide mismanagement by withholding inheritances. If your trustee is requiring a release before providing your distribution, they may be breaching their fiduciary duty.

Five Exceptions to the Rule

There are five legally recognized exceptions when a trustee may be allowed to seek a release of liability:

1. Retaining a Reserve for Future Expenses: Trustees may set aside a portion of trust funds for reasonably foreseeable or unforeseen expenses, such as taxes, debts, legal fees, or the costs of trust administration.

2. Voluntary Releases: A trustee can request a release if it is genuinely voluntary. It means the beneficiary understands the trust accounting, has been given time to review, and is not under pressure.

3. Indemnification for Third-Party Claims: Trustees may request protection if the distribution could lead to third-party claims—such as liability on a mortgaged property being transferred.

4. Disputed Distributions: When a portion of the trust is disputed, the trustee can withhold that portion while distributing the undisputed assets.

5. Court or Beneficiary Approval of Accounting: A trustee may petition the court or seek beneficiary approval of their accounting before making distributions.

These exceptions are sensible when appropriately applied. But if a trustee is using one as an excuse to pressure you—or if you’re being asked to sign something you don’t fully understand—it’s time to speak with an experienced attorney.

At The Grossman Law Firm, we help beneficiaries protect their inheritance by holding trustees accountable when they overstep or misuse their authority. Our team will assess whether your trustee is acting within the bounds of California law and help you take the appropriate legal steps if they’re not. Act now to protect your rights before it’s too late! Partner with a dedicated firm that specializes exclusively in trust and probate litigation to ensure your interests are fiercely protected. Your peace of mind is invaluable—don’t leave it to chance!

Do You Know the Basics of Proper Trust Administration?

If you’re unsure whether your trustee is following the law, you’re not alone. Many beneficiaries don’t learn about their rights until they face a dispute.

We recommend reviewing these helpful resources:

How The Grossman Law Firm Can Help

If you’re being pressured to sign a waiver or believe your trustee is withholding information, The Grossman Law Firm can help. We represent beneficiaries throughout California in trust litigation, including cases involving:

  • Trustee misconduct
  • Breach of fiduciary duty
  • Improper accounting
  • Unfair distribution delays

We will review your situation, explain your rights, and take legal action if necessary.

Call us today at (888) 443-6590 or fill out our Get Help Now form.

Our Intake Specialists can evaluate your case at no cost to you to assess your situation. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.

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