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When Should You Be Concerned About a Trustee?
Key Takeaways
- California beneficiaries have the right to hold trustees accountable.
- A trustee who refuses to provide information or accounting may be violating their fiduciary duties.
- Some trusts allow beneficiaries to replace a trustee without court involvement.
- When serious misconduct exists, beneficiaries may petition the probate court to remove the trustee.
- Acting early often makes it easier to preserve evidence and protect trust assets.
You Don’t Have to Ignore Your Concerns
If you don’t trust a trustee, ignoring the situation can be a costly mistake. Trustees have significant control over trust assets, but California law also holds them to strict fiduciary duties. When a trustee refuses to communicate, withholds information, or appears to be acting in their own interests, beneficiaries have legal options.
At The Grossman Law Firm, Attorney Scott Grossman represents beneficiaries throughout California in probate and trust litigation. Many clients contact us because something simply “doesn’t feel right.” Sometimes the trustee has done nothing wrong. Other times, a closer look uncovers serious misconduct.
When Should You Be Concerned About a Trustee?
Not every argument with a trustee means they have done something wrong. Trustees sometimes make choices that not everyone agrees with, but those decisions may still be allowed under the trust.
However, certain situations deserve closer attention, including when a trustee:
- Refuses to answer reasonable questions
- Delays in providing financial information
- Will not produce a trust accounting
- Appears to favor one beneficiary over another without justification
- Uses trust property for personal benefit
- Makes unexplained transfers or distributions
If you keep running into these problems, it is a good idea to talk with a California trust litigation attorney before things get worse. For more than twenty-five years, The Grossman Law Firm has helped California beneficiaries protect their inheritance and hold trustees accountable.
What Can Beneficiaries Do If They Don't Trust a Trustee?
There are a few different ways you can protect your rights as a beneficiary in California. The best option depends on what the trustee has done and what the trust says.
Request a Trust Accounting
A good starting point is to ask the trustee for a trust accounting.
A proper accounting shows beneficiaries how trust assets have been managed, including:
- Income received
- Expenses paid
- Investments
- Distributions
- Current trust assets
Sometimes an accounting answers questions and resolves concerns without litigation. In other cases, it reveals transactions that require additional investigation.
Petition the Court to Compel an Accounting
If the trustee refuses to provide an accounting or continues delaying without a valid reason, beneficiaries may petition the probate court to compel one.
This court order can require the trustee to fully disclose how trust assets have been managed. If the accounting uncovers breaches of fiduciary duty, it may also support additional legal claims.
Review the Trustee’s Discretion
Beneficiaries sometimes believe distributions are unfair because one person receives more than another.
Before assuming the trustee acted improperly, it is important to review the trust document carefully.
Some California trusts give trustees broad discretion over distributions. Others require equal treatment of beneficiaries. Determining whether the trustee exceeded their authority often requires a careful review of both the trust language and the trustee’s actions.
Attorney Scott Grossman regularly evaluates these issues for beneficiaries trying to determine whether a trustee crossed the line.
Whether the Trustee Can Be Removed Without Court
You do not always have to go to court to remove a trustee.
Some trust documents include provisions allowing beneficiaries, trust protectors, or other designated individuals to remove and replace a trustee under specified conditions.
If the trust has these rules, replacing the trustee can be much easier than going through the court.
Petition the Court to Remove the Trustee
When a trustee commits serious misconduct, and the trust does not provide an alternative removal process, beneficiaries may ask the probate court to remove the trustee.
Examples may include:
- Breach of fiduciary duty
- Self-dealing
- Misappropriation of trust assets
- Failure to administer the trust
- Failure to account
- Conflicts of interest that interfere with proper administration
The court will look at the facts before deciding if the trustee should be removed. If removal is ordered, the court can appoint someone else to take over.
Review Any Trust Protector Provisions
Some trusts name a trust protector.
A trust protector is separate from the trustee and may have authority to oversee certain trustee decisions or remove a trustee under specific circumstances.
Not every trust in California has a trust protector, but it is worth checking the trust document to see if this extra safeguard is there.
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 common warning signs and available actions.
FAQ
Can I remove a trustee just because I don’t trust them?
Not necessarily. Distrust by itself usually is not enough. However, if the trustee has breached fiduciary duties, failed to account, engaged in self-dealing, or otherwise violated California law or the terms of the trust, removal may be appropriate.
Can a trustee refuse to provide an accounting?
In many situations, beneficiaries are entitled to receive an accounting. If the trustee refuses without legal justification, the probate court may order the trustee to provide one.
Should I wait to see if things improve?
Waiting can make things worse. Trust assets might go missing or records could be lost. If you are worried about what the trustee is doing, it is better to talk to an attorney sooner rather than later.
Related Resources
How The Grossman Law Firm Can Help
If you have lost trust in the person managing your family’s trust, you do not have to handle this on your own. Whether you need an accounting, want to look into possible misconduct, or think the trustee should be removed, learning about your rights early can make a real difference.
At The Grossman Law Firm, we help beneficiaries and heirs throughout California enforce their rights in probate and trust litigation.
Please call us at (888) 443-6590 or fill out our Get Help Now form to take the next step in protecting your inheritance.
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: Aug 27, 2016