Table of Contents
Key Takeaways
- Most California trusts name a replacement trustee in case the acting trustee can no longer serve.
- If no successor trustee is available, the court may need to appoint one.
- Delays in filling a trustee vacancy can slow distributions and create uncertainty for beneficiaries.
- Disputes over who should take over as trustee sometimes lead to trust litigation.
What Happens When a Trustee Dies?
When a trustee dies, resigns, becomes incapacitated, or otherwise cannot serve, a vacancy is created. California law provides several ways to fill that vacancy so the trust can continue operating.
The first place to look is the trust document itself. Many trusts include a succession plan that identifies who should serve next.
A new trustee must manage trust assets, pay expenses, communicate with beneficiaries, and fulfill the trust’s terms.
At The Grossman Law Firm, we often hear from beneficiaries who are unsure who takes over after a trustee passes away. The answer depends on the trust’s language and the circumstances surrounding the vacancy.
Common Ways a Successor Trustee Is Selected
Common Ways a Successor Trustee Is Selected
A Co-Trustee Continues Serving
If the trust has multiple trustees and one dies, the surviving co-trustee may continue administering the trust, depending on the trust terms.
This is often the simplest solution because the remaining trustee is already familiar with the trust assets and administration.
The Trust Names a Successor Trustee
Many California trusts include a list of successor trustees who serve in a specific order.
For example:
- Parent serves as original trustee.
- Child A becomes successor trustee.
- Child B serves if Child A cannot act.
If a named successor is willing and able to serve, court involvement may not be necessary.
Beneficiaries Agree on a Replacement
In some situations, beneficiaries may agree to appoint a qualified replacement trustee, particularly when the trust document does not clearly identify who should serve next.
A Professional Trustee or Trust Company Is Appointed
When family members cannot agree or no suitable individual is available, a professional fiduciary or trust company may be appointed to administer the trust.
This option can help reduce conflict and provide neutral administration.
The Probate Court Appoints a Trustee
If there is a dispute or no clear successor trustee, an interested party may petition the probate court to appoint a trustee.
The court’s goal is to select someone who can properly administer the trust and act in the beneficiaries’ best interests.
When Trustee Succession Leads to Litigation
When Trustee Succession Becomes a Dispute
Trust litigation sometimes becomes necessary after a trustee dies, particularly when family members disagree about who should take over administration of the trust.
Common causes of litigation include:
- Multiple beneficiaries claiming the right to serve as trustee.
- Questions about whether a successor trustee is qualified.
- Concerns about conflicts of interest.
- Allegations that a proposed trustee previously mishandled trust assets.
- Disputes over the meaning of the trust document.
When these issues cannot be resolved informally, a court may need to determine who should serve as trustee and how the trust should be administered moving forward.
FAQ
Does a trust automatically end when the trustee dies?
No. The trust continues to exist after the trustee’s death.
What if the trust does not name another trustee?
An interested party may petition the probate court to appoint a replacement trustee.
Can beneficiaries challenge a proposed trustee?
Yes. Beneficiaries can object if they believe the proposed trustee is unqualified, has a conflict of interest, or may not properly administer the trust.
Related Resources
How The Grossman Law Firm Can Help
Questions about trustee succession often arise when families are coping with the loss of a loved one. Disagreements over succession can delay distributions and place trust assets at risk.
At The Grossman Law Firm, we help beneficiaries and heirs across California enforce their rights in probate and trust litigation.
Attorney Scott Grossman has represented beneficiaries and heirs in California trust litigation for over twenty-five years, including cases involving trustee misconduct, removal, and breaches of fiduciary duty.
Call (888) 443-6590 or fill out our Get Help Now form.
Our Intake Specialists can evaluate your case at no cost. Qualifying cases will be scheduled for a free phone consultation with Attorney Scott Grossman.
Originally Published: Oct 14, 2016