TrustTrust Litigation

Trustee Beneficiary Relationship may Extend Statute of Limitations

By January 21, 2026No Comments
trustee beneficiary relationship

Table of Contents

Key Takeaways

  • Many beneficiaries do not recognize trustee misconduct until years after it starts.
  • California law treats the trustee–beneficiary relationship as a fiduciary one.
  • That fiduciary duty can pause or extend certain filing deadlines in trust litigation.
  • Delayed accountings and withheld distributions are common triggers for tolling.
  • Even so, acting sooner rather than later almost always improves the outcome.

Why Beneficiaries Often Do Not Act Right Away

Most beneficiaries pause before taking legal action, and that hesitation makes sense. Trust administration often plays out among family members or close acquaintances.
A family member, or even a close family friend, may serve as a trustee. Going to court can feel extreme or even disruptive. Many beneficiaries think patience will resolve the issue.
Trustees frequently reinforce that assumption. They explain that an accounting will come soon, that distributions are delayed for logistical reasons, or that there is nothing further to report. In the moment, those explanations can sound reasonable.
Over time, delay becomes familiar. What once raised concern starts to feel routine. It is often only later, after months or years have passed, that beneficiaries realize the situation was not temporary at all. At that point, the question almost always becomes the same: Did I wait too long?
At The Grossman Law Firm, we see this pattern repeatedly. Beneficiaries wait in good faith, only to realize later that the delay worked against them. By the time they consider taking action, the concern is no longer just the trustee’s conduct, but whether they waited too long to act.
That concern makes sense. It is also why California law treats the trustee–beneficiary relationship differently when it comes to filing deadlines.

How Fiduciary Duties Affect the Statute of Limitations

Under California law, trustees owe a legal duty to beneficiaries. Those duties require loyalty, honesty, and transparency, also known as a fiduciary duty. Trustees must administer the trust for the beneficiaries’ benefit, not their own.
The trustee–beneficiary relationship matters most when filing deadlines come into play.
Most lawsuits have strict deadlines, and trust disputes are no different. But if a trustee breaks their duties, California courts may apply tolling rules. Tolling means the deadline to file a lawsuit can be paused or extended while the trustee-beneficiary relationship continues. In some cases, courts may treat the statute of limitations as paused because the trustee’s control over information prevented beneficiaries from discovering the problem earlier.
The reasoning is practical. Trustees control the assets. They control the records. Beneficiaries usually cannot discover wrongdoing until the trustee provides information, or fails to do so.
Because of that imbalance, breach-of-fiduciary-duty claims may remain timely even when the misconduct began years earlier.

A Common Example: Missing Accountings and Delayed Distributions

This is a situation we see often.
A trustee stops communicating. Required accountings never arrive. Distributions that should have happened months or years earlier remain “under review.” Each request for information is met with a new explanation, a promise to follow up, or silence altogether.
At first, many beneficiaries assume this is normal. They try to be patient. They give the trustee the benefit of the doubt.
What they do not realize is that a delay, in and of itself, can constitute a breach of fiduciary duty under California law.
In many cases, years pass before a beneficiary learns that the trustee was legally required to provide formal accountings and timely distributions all along. By then, frustration has set in, records may be incomplete, and the trustee’s story has often changed.
There is good news for beneficiaries; waiting does not automatically strip beneficiaries of their rights. When a trustee remains in control of the trust and continues to withhold information that the law requires them to provide, courts often recognize that beneficiaries could not reasonably act sooner. In those situations, the passage of time alone does not necessarily end the claim. Beneficiaries should never be punished for trusting a fiduciary who was legally obligated to act in their best interests.
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 the most common warning signs and what you can do about them.

Why Timing Still Matters

Tolling can protect your legal rights, but it does not stop the damage caused by delay.
Over time, bank statements become harder to obtain, emails are erased, and financial decisions that once had simple explanations start to feel vague or incomplete. What may have begun as a short delay in providing information often turns into a tangled paper trail that is difficult to reconstruct without legal guidance.
Signs to look out for include:
  • Lack of cooperation
  • Slow or no responses
  • Narrower explanations
  • Inaction or delay of administration or distribution
Specializing in probate and trust litigation, Attorney Scott Grossman illustrates that early legal involvement often helps preserve evidence, restore transparency, and move a stalled trust administration toward resolution on firmer footing.
At The Grossman Law Firm, we step in when families are facing some of the hardest moments of their lives. For over 25 years, we’ve helped clients navigate the grief, confusion, and betrayal that are tangled up in inheritance disputes. Let us help you.

FAQ

Does the trustee–beneficiary relationship always extend the statute of limitations?
No. It depends on the situation. Courts look at what the trustee did, what the beneficiary knew or could reasonably have known, and whether the fiduciary relationship was still ongoing.
Can I still sue if the trustee’s misconduct started years ago?
Sometimes, yes. Many breach of fiduciary duty claims remain viable precisely because beneficiaries were kept in the dark while the trustee remained in control.
What if the trustee keeps saying everything is fine?
A trustee’s reassurance doesn’t carry legal weight by itself. Trustees have to back up their words with actual disclosures and proper accountings. If that information never arrives, the problem isn’t resolved, no matter how often the trustee says it is.
Should I wait until I have proof before speaking to a lawyer?
In most cases, waiting only makes things harder. Beneficiaries often don’t know what proof should exist until someone reviews the situation. An early legal review can help identify missing records and prevent further damage.

How The Grossman Law Firm Can Help

At The Grossman Law Firm, we help beneficiaries and heirs across California protect their rights in probate and trust cases.
Our Intake Specialists can evaluate your situation at no cost to you. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.
Call (888) 443-6590 or fill out our Get Help Now form to take the next step.
Originally Published: September 15, 2016