TrustTrust LitigationTrustee Duties

Trustee Duties in California | Fiduciary Responsibilities Explained

By January 12, 2026January 23rd, 2026No Comments
Trustee Duties in California

Table of Contents

Key Takeaways

  • California law holds trustees to strict fiduciary standards under the California Probate Code.
  • A trustee’s role requires loyalty to beneficiaries, careful decision-making, openness, and fair treatment of everyone involved.
  • In practice, trust problems often develop quietly through inaction or poor organization, even when the trustee means well.
  • Beneficiaries have enforceable legal rights when a trustee fails to meet these duties.
  • Taking action early often reduces losses and limits the complexity of a trust dispute.
  • As a result, beneficiaries who act early are often in a stronger legal position.

What It Means to Serve as a Trustee in California

Serving as a trustee in California carries serious legal responsibilities. It is more than helping out a family member or handling paperwork. Once someone accepts the role, as a result, California law imposes strict fiduciary standards, and the probate court has the authority to step in if problems arise.
Under the California Probate Code, a trustee is expected to put the beneficiaries first, follow the trust’s instructions as written, and handle trust assets with care and attention. These duties begin the moment the trustee takes on the role and continue throughout the administration of the trust.
Importantly, it does not matter why someone was chosen as a trustee. Family members, close friends, and professional trustees are all held to the same legal standard.  At the same time, California courts expect trustees to follow the law strictly. As a result, courts focus on what the trustee actually did or failed to do, not on intent. In other words, even a trustee who means well can be held responsible if delay, mistakes, or poor decisions cause harm to the trust or its beneficiaries.

At The Grossman Law Firm, we often hear from beneficiaries who feel unsure, frustrated, or overwhelmed when a trustee is struggling to meet these obligations. Trust administration frequently follows the loss of a loved one. Because of this, delays or mistakes can make an already difficult situation much harder.

Attorney Scott Grossman focuses exclusively on probate and trust litigation. Our role at The Grossman Law Firm is to step in when a trustee’s conduct puts trust assets or beneficiary rights at risk. Speaking with a probate or trust attorney can often prevent problems from escalating and help restore order before greater damage occurs.
If something about the trust administration does not feel right, The Grossman Law Firm is here to help. You do not have to navigate this process by yourself.

The Duties California Trustees Owe to Beneficiaries

California law requires trustees to put beneficiary interests ahead of their own and to act fairly toward all beneficiaries.
In most cases, common trustee duties owed to beneficiaries include:
  • Acting in good faith and with undivided loyalty
  • Administering the trust according to its written terms
  • Avoiding conflicts of interest and self-dealing
  • Treating beneficiaries impartially unless the trust states otherwise
  • Making required distributions on time
  • Keeping beneficiaries reasonably informed about trust administration
For this reason, a trustee does not have discretion to ignore beneficiaries, delay communication indefinitely, or withhold information without justification. Courts often view silence and prolonged delay as red flags, especially when distributions are overdue or reasonable requests go unanswered.

The Fiduciary Rules California Trustees Are Required to Follow

In addition to general obligations, California law sets out specific fiduciary duties that govern how trustees must operate.
These duties include the obligation to:
  • Administer the trust with reasonable care, skill, and caution
  • Keep trust property separate from personal assets
  • Use trust assets only for trust purposes
  • Maintain accurate and complete records
  • Provide an accounting when required by law or the trust
  • Take reasonable steps to safeguard and control trust property
Accordingly, these responsibilities come with the role. For this reason, a trustee cannot avoid them by claiming inexperience, lack of time, or confusion. Once someone accepts an appointment as trustee, the legal duties apply.
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.

How Trustees Must Manage and Invest Trust Assets in California

Trustees in California are also responsible for the investment and management of trust assets.
Under California’s prudent investor standards, trustees must:
  • Manage trust assets as a prudent investor would under similar circumstances
  • Consider the purpose of the trust and the needs of the beneficiaries
  • Balance the interests of current and future beneficiaries
  • Diversify investments unless doing so would clearly be unreasonable
  • Review investment performance on an ongoing basis
  • Monitor professionals hired to assist with trust administration
Notably, trustees are judged largely on their decision-making process. In contrast, a loss alone does not necessarily indicate a breach. However, failing to investigate, monitor, or adjust investments often leads to problems and potential liability.

Common Trustee Mistakes That Often Lead to Trust Litigation

In reality, many trust disputes are not the result of fraud or intentional misconduct. More often, in practice, they grow out of neglect, delay, or disorganized administration that compounds over time.

Common issues include:

  • Taking too long to make required distributions
  • Failing to provide a clear and timely accounting
  • Blurring the line between trust funds and personal money
  • Delegating responsibilities without proper oversight
  • Ignoring or slow-walking beneficiary requests for information
  • Favoring one beneficiary over others without a legal basis
For this reason, California courts take these problems seriously. In many cases, the real damage comes from the delay itself. As a result, missed investment opportunities, unnecessary tax exposure, and rising legal costs can steadily drain a trust before beneficiaries realize something is wrong.
At The Grossman Law Firm, we regularly represent beneficiaries facing these exact issues. Attorney Scott Grossman focuses exclusively on probate and trust litigation, helping beneficiaries take action when a trustee’s conduct puts trust assets or beneficiary rights at risk. Addressing concerns early often preserves more of the trust and brings accountability before the situation worsens.

FAQ

Can a trustee be held liable without intentional wrongdoing?

Yes. California law does not require bad faith. A trustee may face legal consequences for negligence, unreasonable delay, or failure to follow the trust’s terms, even if the trustee believed they were acting appropriately.

Are trustees required to provide regular accountings?

In most cases, yes. The timing and scope depend on the trust document and the California Probate Code, but beneficiaries are generally entitled to clear and accurate information about how trust assets are managed. Delayed or incomplete accounting is  an early warning sign of deeper issues.

Can beneficiaries force a trustee to act?

Yes. Beneficiaries may petition the probate court to compel action, require accountings, seek financial penalties, or request removal of the trustee when warranted.

How The Grossman Law Firm Can Help

At The Grossman Law Firm, we represent beneficiaries and heirs throughout California in probate and trust litigation matters. Attorney Scott Grossman focuses exclusively on disputes involving trustees who delay distributions, mismanage assets, or fail to follow the law.
When a trustee is not meeting their obligations, early legal action often makes a meaningful difference. Records are easier to obtain, assets are easier to trace, and options are broader before problems escalate.
At The Grossman Law Firm, we help beneficiaries and heirs throughout California enforce their rights in probate and trust litigation.
Call (888) 443-6590 or fill out our Get Help Now form.
Our Intake Specialists can evaluate your case at no cost. Qualifying cases are scheduled for a Free Phone Consultation with Attorney Scott Grossman.
Originally Published: Apr 10, 2024