TrustTrust LitigationTrustee Duties

What is a Fiduciary?

By April 29, 2026No Comments
What is a Fiduciary

Table of Contents

Key Takeaways

  • A fiduciary is someone legally required to act in another person’s best interests.
  • Trustees, executors, administrators, and agents under powers of attorney may all owe fiduciary duties.
  • In California, fiduciary duties usually include loyalty, reasonable care, openness, and avoiding conflicts of interest.
  • Trustees are often held to particularly strict standards because they control trust property for beneficiaries.
  • Breaches such as self-dealing, missing funds, or failure to account may justify court intervention.

What Is a Fiduciary Under California Law?

A fiduciary is an individual who is entrusted to act primarily for the benefit of another person.
Under California probate and trust law, fiduciaries frequently manage assets, property, or legal authority that belong to or impact others. Consequently, the law imposes heightened duties on fiduciaries.
Beneficiaries often contact The Grossman Law Firm upon observing delays, lack of transparency, or financial irregularities. Frequently, the central concern is whether the fiduciary is fulfilling their legal obligations.
Although fiduciary relationships are based on trust, California law requires more than mere reliance on personal trust. Fiduciaries are legally obligated to act with loyalty, care, and honesty.

Who Can Owe a Fiduciary Duty in California Probate and Trust Matters?

In California probate and trust disputes, fiduciaries may include:

Trustees

A trustee manages trust assets for beneficiaries and must follow the trust terms and the California Probate Code.

Executors or Personal Representatives

An executor (or administrator if no will exists) manages a probate estate, handles debts, protects estate property, and distributes assets properly.

Agents Under Power of Attorney

A person acting under a valid power of attorney may owe fiduciary duties depending on the authority granted.

Conservators or Guardians

Court-appointed fiduciaries managing another person’s finances or care may also owe legal duties.
Not every fiduciary is a trustee, but every trustee is a fiduciary.

What Duties Does a Trustee Owe Beneficiaries?

California trustees are often central to trust litigation because they directly control trust property.

Duty of Loyalty

Under California Probate Code section 16002, a trustee must administer the trust solely in the interests of beneficiaries.

Duty of Care

Under Probate Code section 16040, trustees must act with reasonable care, skill, and caution.

Duty to Inform and Account

Trustees generally must keep beneficiaries reasonably informed and may need to provide accountings under Probate Code sections 16060 and 16062.

Duty to Avoid Self-Dealing

A trustee generally cannot use trust property for personal gain unless expressly authorized.

Duty of Impartiality

When multiple beneficiaries exist, trustees must act fairly rather than favoring one beneficiary over another.
These duties are significant because beneficiaries rely on trustees to provide transparency and ensure the lawful administration of trust assets.

What Is a Breach of Fiduciary Duty?

A breach of fiduciary duty happens when a fiduciary fails to act as required by law or acts against the beneficiary’s interests.

Common Examples of Fiduciary Breach

  • Misusing trust or estate funds
  • Self-dealing
  • Favoring one beneficiary unfairly
  • Failing to provide accounting
  • Concealing assets
  • Delaying distributions without a valid reason
  • Mixing personal funds with trust assets
Breaches of fiduciary duty may result from intentional misconduct, negligence, or inadequate administration. In all cases, beneficiaries risk experiencing financial harm.
If there is suspicion that a trustee is not acting in the beneficiary’s best interest, it is advisable to review 20 Ways Your Trustee May Be Breaching Their Fiduciary Duties,  to identify common warning signs and potential remedies.

When Fiduciary Misconduct Becomes Probate or Trust Litigation

Not every error results in litigation; however, when fiduciary misconduct endangers assets or beneficiary rights, legal action may be warranted.
This can include petitions to:
  • Compel an accounting
  • Suspend or remove a trustee.
  • Surcharge a fiduciary for financial harm.
  • Compel trust distributions
  • Recover misappropriated assets
Attorney Scott Grossman handles probate and trust litigation throughout California for beneficiaries and heirs facing fiduciary misconduct.
Prolonged fiduciary misconduct can complicate efforts to trace assets, preserve records, or recover losses.

FAQ

Common Questions About Fiduciary Duties, Trustees, and Beneficiary Rights

Is a trustee always a fiduciary?

Yes, a trustee owes fiduciary duties to the trust beneficiaries.

Can an executor breach fiduciary duty?

Yes, executors and administrators can also breach their fiduciary duties if they mismanage estate assets, conceal information, or fail to comply with probate law.

What is self-dealing?

Self-dealing generally means using trust or estate property for personal benefit without lawful authority.

Can beneficiaries sue for breach of fiduciary duty?

In many situations, beneficiaries may seek court remedies if fiduciary misconduct causes harm.

What should I do if I suspect fiduciary misconduct?

Collect trust documents, accountings, court papers, financial records, and any communications. Getting legal advice early can help you decide if you need to take formal action.

How The Grossman Law Firm Can Help

Early intervention is pivotal to securing beneficiary rights. It is crucial that a fiduciary, trustee, executor, or personal representative is suspected of violating duties under California law.
The Grossman Law Firm assists 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.
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: April 17, 2025