Key Takeaways
Do Trustees Have to Treat Beneficiaries Equally?
Why California Law Requires Equal Treatment
What If Beneficiaries Have Different Interests?
What to Do If Your Trustee Is Not Acting Impartially
Know the Basics of Proper Trust Administration
FAQ
How The Grossman Law Firm Can Help

Key Takeaways

California law requires trustees to treat all beneficiaries impartially.
Unequal treatment may constitute a breach of fiduciary duty, even if unintentional.
Beneficiaries can file a petition for the removal of the trustee and financial recovery.
Trustees must follow the California Probate Code and the Uniform Prudent Investor Act.

Do Trustees Have to Treat Beneficiaries Equally?

Yes. Under California Probate Code §16003, a trustee must act impartially toward all beneficiaries. That means the trustee cannot favor one beneficiary over another or make decisions that benefit one at the expense of another.

At The Grossman Law Firm, we regularly represent beneficiaries who are dealing with Trustees who fail to uphold their legal obligations. If you’re concerned that you’re being taken advantage of, it’s essential to understand your rights and take action if necessary.

A Trustee’s duty of impartiality applies to all aspects of trust administration, including:

Distributions
Investment decisions
Property management
Communication with beneficiaries

If your Trustee is not upholding this duty, they may be in breach of their fiduciary obligations.

Trustee Duties: Can Trustees Treat Beneficiaries Unequally?

Why California Law Requires Equal Treatment

California law is clear: Trustees must manage the trust fairly and without bias. The duty to act impartially ensures that every beneficiary receives what the trust entitles them to—no more, no less.

This requirement includes:

Fair Treatment: A Trustee cannot show favoritism, whether intentional or not.
Impartial Investment and Management: Trustees must manage trust assets in a way that benefits all beneficiaries, not just one group.
Consideration of Different Interests: Even when beneficiaries have different types of interests (e.g., one receives a specific gift while others receive the residue), the Trustee must act in a manner that respects all legal entitlements.

At The Grossman Law Firm, we help beneficiaries determine whether their Trustee’s actions meet California’s legal standards. If you suspect you’re being treated unfairly, reviewing our article on “20 Ways a Trustee Can Breach Their Duties ” is a great starting point. It outlines common violations that may entitle you to take legal action. Suppose your Trustee is falling short in any of these areas. In such cases, it’s essential to understand how the law applies, particularly when beneficiaries have conflicting interests under the same trust.

How Trustees Must Handle Conflicting Beneficiary Interests

A Trustee’s duty of impartiality doesn’t mean treating all beneficiaries identically. Instead, the Trustee must act fairly in light of each beneficiary’s interest as outlined in the trust document.

Example:

Suppose a trust includes a $100,000 specific gift to one beneficiary, and the remaining assets are distributed to others. In that case, the Trustee may need to sell property or take out a loan to fund the gift. Even if the other beneficiaries disagree, the Trustee is acting correctly by prioritizing the specific gift, as required by the trust terms.

The key is that the Trustee must balance differing interests without favoring one beneficiary’s preference over the legal requirements of the trust.

What to Do If Your Trustee Is Not Acting Impartially

Suppose your Trustee is favoring another beneficiary or making decisions that harm your share of the trust. In that case, you may have legal grounds to act. A breach of the duty of impartiality can result in financial harm to the trust and you.

Here’s what to do:

Evaluate the Harm
Has the Trustee’s behavior caused a loss to the trust or reduced your distribution?
Consult a Trust Litigation Attorney
The Grossman Law Firm can help you determine if the Trustee’s actions rise to a breach of fiduciary duty.
File a Petition for Relief
If necessary, you may be able to petition the probate court to:
- Remove the Trustee
- Surcharge the Trustee (seek damages)
- Request prejudgment and post-judgment interest

You can learn more in our article: What to Include in a Petition for Court Oversight of a Trust.

Know the Basics of Proper Trust Administration

Understanding your rights as a beneficiary is key to protecting your inheritance. For more detailed information, explore these resources:

If you believe your Trustee is not following the law, don’t wait. The longer a Trustee mismanages a trust, the more damage they can cause.

FAQ

Can a Trustee give one beneficiary more than another?

Only if the trust terms allow for unequal distributions, otherwise, the Trustee must act impartially in both management and distribution.

What if a Trustee refuses to communicate with me?

Lack of communication may be part of a broader breach of fiduciary duty. Trustees are required to keep beneficiaries reasonably informed.

What does it mean to “surcharge” a Trustee?

Surcharging means holding the Trustee financially accountable for losses caused by their breach of duty.

Can I sue a Trustee for favoritism?

Yes. Suppose you can prove that the Trustee’s favoritism caused financial harm or violated the trust terms. In that case, you may be entitled to compensation and/or removal of the Trustee.

How The Grossman Law Firm Can Help

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

Call (888) 443-6590 or fill out our Get Help Now form. Don’t wait—protect your share of the trust today.

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

Trustee Duties: Can Trustees treat Beneficiaries unequally?

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