TrustTrust LitigationTrustee Duties

Trustee Record Keeping Requirements in CA Trust Administration

By February 3, 2026No Comments
trustee record keeping

Table of Contents

Key Takeaways

  • In the state of California, trustees must maintain accurate and complete trust records throughout the administration of the trust.
  • As a result, proper records make trust accountings easier to prepare and easier to defend.
  • Further, missing receipts or disorganized records often trigger beneficiary disputes.
  • Early legal guidance can prevent costly trust litigation later.

Why Accurate Trust Records Matter in California

Accurate Records Support Required Trust Accountings

Serving as a trustee comes with serious responsibilities. One of the most important duties is maintaining accurate records throughout the trust administration.
Under California law, trustees must be able to explain how trust assets were managed, what expenses were paid, and when distributions were made. This obligation goes hand in hand with the duty to provide formal trust accountings. Without proper records, those accountings become difficult to prepare and even harder to defend.

Poor Documentation Often Triggers Disputes

At The Grossman Law Firm, we regularly see disputes that start not with misconduct, but with poor documentation. In many cases, the problem is not what the trustee did, but the inability to prove it later.
As a result, even routine transactions may raise suspicion when records are incomplete or disorganized. Over time, those questions often grow into formal objections.

Three Practical Tips for Keeping Trust Records

1. Get legal guidance early

In practice, trustees often underestimate how detailed trust records must be. Working with an experienced trust litigation attorney can help you understand what records are required and how they should be maintained. This guidance can significantly reduce the risk of beneficiary objections or accusations of fiduciary breach.

2. Use a consistent book keeping system

Every dollar in and out of the trust should be documented. Some trustees use accounting software on their own. Others lean on a bookkeeper, CPA, or attorney. However, it’s done, the records must be accurate and kept consistently.

3. Keep supporting documents, not just entries

However, numbers alone are not enough. Trustees should retain receipts, invoices, bank statements, and other documents that support each transaction. These records often become critical if a beneficiary questions the accounting or asks the court to review the trustee’s conduct.

What Happens When Trustees Fail to Keep Records

Trustee Duties: Record Keeping

Further, inadequate record keeping is one of the most common examples that beneficiaries oppose trust accountings. When records are incomplete or unclear, a probate court may intervene and:
  • Order a corrected or supplemental accounting.
  • Disallow certain expenses or trustee compensation.
  • Shift the burden to the trustee to justify challenged transactions.
  • Open the door to surcharge or formal removal proceedings.
What often starts as a documentation problem can quickly turn into litigation.
If you suspect your trustee is not acting in your best interest, it is time to speak with an attorney specializing in probate and trust litigation.
Explore 20 Ways Your Trustee May Be Breaching Their Fiduciary Duties to learn common warning signs and available actions.

FAQ

Are trustees required to keep receipts for every expense?
Yes, trustees should retain records that verify all trust disbursements and transactions.
Can a trustee be penalized for poor recordkeeping even without bad intent?
Yes, California courts evaluate conduct, not intent. Good faith does not excuse missing or inaccurate records.
Do beneficiaries have the right to question trust records?
Yes, beneficiaries may object to accountings and request court review if records are unclear or incomplete.

How The Grossman Law Firm Can Help

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 to you. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.
Originally Published June 18, 2018