ArticlesTrustee Duties

California Trustee Duties: What Beneficiaries Should Know

By September 4, 2026No Comments
Trustee Duties in California

Being named trustee does not give a person free control over the trust property.

A trustee in California has legal obligations regarding how they administer the trust and handle the beneficiaries. They are required to abide by the terms of the trust, protect the trust’s assets, keep proper records, and avoid using the trust’s funds for their own advantage.

If a trustee fails to fulfill those obligations, the beneficiaries may seek compensation and/or removal or suspension of the trustee. 

Scott Grossman, the founder and litigator with the Grossman Law Firm, represents California beneficiaries by bringing legal actions against trustees over misconduct and breaches of fiduciary duty.

Table of Contents

Key Takeaways

  • A trustee must administer the trust according to its terms.
  • Trustees must act in the interests of the beneficiaries rather than use trust property for personal benefit.
  • Trust property must be protected and managed with reasonable care.
  • Trustees have responsibilities involving information, records, and accountings.
  • A beneficiary may ask the probate court to intervene when a trustee breaches their duties.

What Does a Trustee Have to Do After the Settlor Dies?

A successor trustee generally takes responsibility for administering the trust after the settlor’s death when the trust becomes irrevocable.

The exact administration depends on the trust’s instructions and assets.

A trustee may need to:

  • Identify and secure trust property.
  • Obtain financial accounts and other assets.
  • Manage trust property while the administration is pending.
  • Address appropriate trust expenses and liabilities.
  • Sell property when required or appropriate.
  • Keep records of trust transactions.
  • Provide required information and accountings to beneficiaries.
  • Make distributions according to the trust.

The same duties apply if the trustee is a member of the family, a friend, or somebody whom the settlor personally trusted, or other third party. 

At The Grossman Law Firm, Attorney Scott Grossman represents California beneficiaries when a trustee’s failure to fulfill these duties may amount to a breach of fiduciary duty.

What Fiduciary Duties Does a California Trustee Have?

California Probate Code § 16000 requires a trustee to administer the trust in accordance with the trust instrument.

That is only the starting point.

Duty of Loyalty

A trustee generally must administer the trust solely in the interests of the beneficiaries.

That means the trustee should not use their position to obtain an improper personal benefit from trust property.

Duty to Deal Impartially With Beneficiaries

When a trust has two or more beneficiaries, the trustee has a duty to deal impartially with them and consider their respective interests.

A trustee cannot simply favor one beneficiary because they have a better personal relationship with that person.

Duty to Protect Trust Property

The trustee must take reasonable steps to control and preserve the trust property.

For example, a trustee responsible for a vacant home may need to secure and maintain the property while deciding what must happen to it under the trust.

Duty to Keep Trust Property Separate

A trustee generally must keep trust property separate from their own property.

Trust money is not the trustee’s money, even when the trustee is also a beneficiary.

Duty to Keep Beneficiaries Informed

California trustees also have duties to keep beneficiaries reasonably informed about the trust and its administration.

At The Grossman Law Firm, Attorney Scott Grossman helps California beneficiaries determine whether a trustee may have breached their fiduciary duties and what options may be available. Depending on the circumstances, beneficiaries may have the right to request information, receive an accounting, or ask the probate court to intervene.

What Is a Breach of a Trustee's Fiduciary Duty?

A breach can occur when the trustee violates a duty imposed by the trust or California law.

Examples may include:

  • Using trust money for personal expenses.
  • Refusing to follow distribution instructions.
  • Allowing trust property to deteriorate.
  • Favoring one beneficiary over another improperly.
  • Failing to account for trust assets.
  • Making unauthorized transfers.
  • Mixing trust funds with personal money.
  • Failing to provide required information.
  • Unreasonably delaying distributions.
  • Refusing to take action necessary to administer the trust.

Whether conduct actually amounts to a breach depends on the trust and the surrounding facts.

When a Trustee Puts Personal Interests First

Imagine a trust that owns a home that must be sold and the proceeds divided among several beneficiaries. Instead of preparing the property for sale, the trustee allows their own family members to move into the home and live there without paying rent.

Months pass, but the trustee makes no effort to list the property. When the beneficiaries ask about the delay, the trustee refuses to provide a clear explanation or a timeline for the sale.

In this situation, the beneficiaries may have reason to question whether the trustee is putting personal interests ahead of their fiduciary duties. Whether the conduct amounts to a breach would depend on the terms of the trust and the specific circumstances.

What Can a Beneficiary Do About a Breach of Fiduciary Duty?

You do not necessarily have to accept a trustee’s explanation simply because they control the trust.

California Probate Code § 17200 allows a beneficiary to petition the probate court concerning the internal affairs of a trust. Depending on the circumstances, a beneficiary may seek orders addressing the trustee’s conduct.

Potential remedies for a breach of trust can include compelling the trustee to perform their duties, requiring an accounting, recovering trust property, imposing a surcharge, or removing the trustee.

The appropriate remedy depends on what happened and whether the trust suffered a loss.

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 common warning signs and available actions.

When Should I Contact a Trust Litigation Attorney?

One mistake does not necessarily mean a trustee has committed a serious breach of fiduciary duty.

Patterns matter.

If the trustee keeps ignoring the trust, is unable to give an account of the assets, benefits personally from trust property, or refuses to distribute your inheritance without a reasonable explanation, it may be worth having the situation looked into.

The longer a dispute continues, the more difficult it can become to determine what happened to trust property and protect your rights.

For more on when trustee conduct may require legal action, read our article, When to Talk to a Trust Litigation Lawyer in California.

FAQ

Can a trustee use trust money for themselves?

A trustee cannot simply treat trust assets as personal property. Trustees have a duty of loyalty and generally must administer the trust solely in the beneficiaries’ interests.

Can a trustee permit a member of the family to live in the house which is owned by the trust?

It all comes down to the trust and the specific circumstances; nevertheless, the arrangement may raise concerns if it benefits the trustee or someone else while delaying a sale or distribution required by the trust.

Is delaying an inheritance a breach of fiduciary duty?

Not necessarily. Legitimate trust administration takes time. An unreasonable delay without a valid administrative reason, however, may warrant further investigation.

Can beneficiaries remove a trustee?

California probate courts can remove trustees under circumstances authorized by law. Removal is a significant remedy, so its appropriateness depends on the nature and severity of the trustee’s conduct.

How The Grossman Law Firm Can Help

If you believe a trustee is ignoring the trust, misusing assets, or improperly withholding your inheritance, you may have options to hold them accountable.

At The Grossman Law Firm, we help beneficiaries and heirs throughout California enforce their rights in probate and trust litigation.

You can call (888) 443-6590 or complete our Get Help Now form to discuss your situation.

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.