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By: Scott Grossman on July 8th, 2025

Understanding the Role and Duties of a Trustee in California

Table of Contents

  • Key Takeaways
  • What Is a Trustee in California?
  • Core Fiduciary Duties of a Trustee
  • Types of Trusts a Trustee May Manage
  • Day-to-Day Responsibilities of a Trustee
  • Common Pitfalls and Trustee Liability
  • FAQ
  • Call to Action

Key Takeaways

  • Trustees have the legal authority and a fiduciary duty to manage trust assets for the beneficiaries in accordance with the terms of the trust.
  • California law imposes strict standards, including duties of loyalty, impartiality, and complete transparency.
  • Trustees must regularly account, report, and communicate with beneficiaries about the trust’s status.
  • Missteps can lead to removal or personal liability, which is why many trustees consult legal counsel.
  • The Grossman Law Firm assists beneficiaries in understanding and enforcing their rights, particularly when a trustee breaches their duties.

Understanding the Role and Duties of a Trustee in California

What Is a Trustee in California?

A trustee is a person or institution legally responsible for managing a trust on behalf of the beneficiaries. Under California law, a trustee holds the power—and the obligation—to administer trust assets in strict accordance with the terms of the trust document and the California Probate Code.

A trust is typically created when a settlor (also known as a trustor or grantor) transfers property into the trust. The trustee manages the assets and ensures they are used or distributed as intended.

At The Grossman Law Firm, we help beneficiaries understand what their trustee should and shouldn’t be doing. If you haven’t received copies of the trust or aren’t getting updates, that may be a red flag.

Core Fiduciary Duties of a Trustee

California trustees are subject to several legal duties, collectively known as fiduciary or trustee duties. These include:

  • Duty to Administer the Trust: The trustee must follow the instructions laid out in the trust instrument.
  • Duty of Loyalty: The trustee must act solely in the best interest of the beneficiaries, not for their own benefit or that of outside parties.
  • Duty of Impartiality: When multiple beneficiaries are involved, the trustee must treat each fairly.
  • Duty to Account: Trustees must provide accountings to beneficiaries—annually or at key points in the administration of the trust.
  • Duty to Furnish Information: Trustees are required to provide reasonable information about the trust to beneficiaries upon their request.
  • Duty to Avoid Conflicts of Interest: A trustee must avoid personal or professional conflicts that impact their decision-making.
  • Duty to Disclose: California law requires trustees to disclose relevant trust matters, particularly when the interests of beneficiaries may be affected.

If you think your trustee may be violating one or more of these duties, read our article “20 Ways Your Trustee Can Be Breaching Their Fiduciary Duties“.

Types of Trusts a Trustee May Manage

Trustees in California may manage one or more of the following types of trusts:

  • Revocable Living Trusts: Created during the settlor’s lifetime and modifiable until death. Often, the settlor is also the trustee until they pass away.
  • Irrevocable Trusts: Cannot be changed once established. The trustee assumes full control and must closely follow the instructions of the trust.
  • Testamentary Trusts: Created through a will and activated upon the death of the person who created it. These are common in probate proceedings.

Each type of trust imposes unique obligations on the trustee and grants distinct rights to the beneficiaries.

Day-to-Day Responsibilities of a Trustee

Being a trustee isn’t just about paperwork; it’s about being responsible. It involves active, ongoing oversight. Responsibilities may include:

  • Asset Management: Safeguarding trust property, making prudent investment decisions, and preserving trust value.
  • Recordkeeping: Maintaining detailed records, including financial statements, correspondence, and decisions.
  • Beneficiary Communication: Providing updates, responding to reasonable inquiries, and keeping the lines of communication open.
  • Accounting & Reporting: Preparing periodic accounting and submitting tax filings when required.
  • Distribution of Assets: Disbursing assets as outlined in the trust, and only when appropriate.
  • Conflict Resolution: Handling disputes among beneficiaries impartially and professionally.

Common Pitfalls and Trustee Liability

Despite best intentions, trustees can make mistakes that open them up to legal consequences, including:

  • Failing to provide the required accounting
  • Favoring one beneficiary over another
  • Mismanaging investments or trust funds
  • Failing to disclose conflicts of interest
  • Ignoring required tax filings or deadlines

The court may remove trustees who breach their fiduciary duties, force them to repay losses, or hold them personally liable for damages.

If you’re unsure whether your trustee is doing their job, The Grossman Law Firm can help you assess the situation and take action if needed.

FAQ

What happens if a trustee doesn’t follow the trust?

They can be held legally responsible and may be removed, sued, or required to compensate the beneficiaries.

Can a trustee also serve as a beneficiary?

Yes—but they must still act impartially and in the best interests of all beneficiaries.

How often should a trustee communicate with beneficiaries?

Trustees must respond to reasonable requests for information and provide updates, especially when accountings are due.

Can I remove a trustee if they’re not doing their job?

In many cases, yes. Beneficiaries can petition the court to remove a trustee for cause.

Is a trustee paid for their work?

Yes. Trustees are entitled to reasonable compensation unless the trust says otherwise.

Call to Action

If you’re a beneficiary in California and you believe your trustee isn’t fulfilling their responsibilities—or you’re simply unsure what they should be doing—don’t wait. Delays can lead to asset mismanagement, missed distributions, or loss of your legal rights.

At The Grossman Law Firm, we’ve spent decades helping beneficiaries like you resolve trust disputes, hold trustees accountable, and recover what’s rightfully yours.

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.

Let’s get you clarity—and the help you deserve.