Your parent named your sibling as trustee. Now Mom has passed, and something feels wrong. Distributions are delayed. Questions go unanswered. You’re starting to wonder whether the person in charge is actually following the rules—or just doing whatever benefits them.
Under California law, a trustee owes a fiduciary duty to all trust beneficiaries—the highest legal obligation one person can owe another. This means the trustee must act with undivided loyalty, manage trust assets prudently, keep beneficiaries reasonably informed, and never use trust property for personal gain. California Probate Code Sections 16000–16015 codify these duties, and when a trustee violates them, beneficiaries have the legal right to take action.
This article explains exactly what fiduciary duty means for California trustees, the specific obligations the law imposes, and what options you have if a trustee is failing to meet these standards. If you’re a beneficiary concerned about how a trust is being handled, The Legacy Lawyers protect beneficiary rights throughout California.
What Is a Trustee’s Fiduciary Duty Under California Law?
A fiduciary duty is the most demanding standard of care the law recognizes. It goes far beyond ordinary contract obligations or general negligence standards. When someone accepts the role of trustee, they’re legally bound to put the beneficiaries’ interests above their own—in every decision, every transaction, every communication.
California Probate Code §16002 establishes the core principle: “The trustee has a duty to administer the trust solely in the interest of the beneficiaries.” This is the duty of loyalty, and it’s absolute. A trustee cannot engage in self-dealing, cannot favor one beneficiary over another without trust authorization, and cannot profit personally from the trust relationship.
The California Supreme Court reinforced this standard in Estate of Gilmaker (1962) 57 Cal.2d 627, holding that a trustee “occupies a position of the highest trust and confidence” and that “the law is jealous of self-dealing by trustees.” Courts will scrutinize any transaction where a trustee benefits personally—even if the transaction appears fair on its surface.
California Probate Code §16040 imposes the duty of prudent administration, requiring trustees to “administer the trust with reasonable care, skill, and caution under the circumstances then prevailing.” This means:
- Investing trust assets wisely and diversifying when appropriate
- Avoiding speculative or high-risk investments unless the trust specifically allows them
- Protecting trust property from loss, theft, or deterioration
- Making distributions according to the trust terms—not according to personal preference
What does this look like in real families? Consider a trust that owns rental property. The trustee decides to let their own adult child live in the property rent-free while other beneficiaries wait for their distributions. That’s a breach of fiduciary duty—specifically, self-dealing that benefits the trustee’s family at the expense of the trust beneficiaries. Under California Probate Code §16004, the trustee cannot “use or deal with trust property for the trustee’s own profit” or for the profit of anyone other than a beneficiary.
Your Rights as a Trust Beneficiary in California
California law doesn’t just impose duties on trustees—it gives beneficiaries specific rights to enforce those duties. If you’re a trust beneficiary, you’re not powerless. The Probate Code provides multiple mechanisms to hold a trustee accountable.
The Right to Information: Under California Probate Code §16061.7, a trustee must provide written notice to beneficiaries within 60 days after a trust becomes irrevocable (typically after the trustor’s death). This notice must include a copy of the trust terms, the trustee’s contact information, and information about beneficiaries’ rights. If a trustee fails to provide this notice, they may be liable for the costs of any resulting litigation.
The Right to an Accounting: California Probate Code §16062 requires trustees of irrevocable trusts to provide an accounting to each beneficiary at least annually and upon termination of the trust. This accounting must detail all trust income, expenses, distributions, and changes in assets. A trustee who refuses to provide an accounting can be compelled by court order—and may be required to pay the beneficiary’s attorney fees for forcing the issue.
The Right to Petition the Court: If a trustee breaches their fiduciary duty, beneficiaries can petition the California probate court under California Probate Code §17200. This petition can request:
- A formal accounting
- Instructions to the trustee on proper administration
- Removal of the trustee
- Surcharge (repayment) for losses caused by the trustee’s breach
- Recovery of attorney fees and costs
In Meiri v. Shamtoubi (2022), a California appellate court affirmed that beneficiaries who successfully prove a breach of fiduciary duty can recover not just their actual damages, but also the attorney fees incurred in pursuing the claim—shifting the financial burden back to the breaching trustee.
Timing matters. Under California Probate Code §16460, beneficiaries generally have three years from the date they discover (or should have discovered) a breach to file a lawsuit. Waiting too long can mean losing your right to recover—even if the breach caused significant harm.
If you’re concerned about how a trustee is handling a California trust, you don’t have to wait until assets are gone to take action. Get started with a consultation at The Legacy Lawyers. We represent beneficiaries from seven California offices—Irvine, Los Angeles, Torrance, Inland Empire, San Diego, San Francisco, and Sacramento.
How The Legacy Lawyers Protect Your Beneficiary Rights
Trust disputes are deeply personal. They involve family relationships, grief, and often a sense of betrayal. The Legacy Lawyers understand that you’re not just dealing with a legal problem—you’re dealing with someone you may have trusted who is now acting against your interests.
Our team focuses exclusively on trust litigation, probate disputes, and beneficiary rights. We don’t draft estate plans. We step in when something has gone wrong—when a trustee is mismanaging assets, withholding information, or favoring themselves or certain beneficiaries over others.
Attorney Phillip C. Lemmons, recognized by Super Lawyers, leads a team with deep experience across California probate courts. Our attorneys have handled cases involving:
- Trustee removal for breach of fiduciary duty
- Compelled accountings when trustees refuse to provide financial information
- Surcharge actions to recover losses caused by negligent or dishonest administration
- Trust contests based on undue influence or lack of capacity
The Legacy Lawyers have earned recognition from Martindale Hubbell, Avvo, Expertise, and the Orange County Bar Association. We serve clients statewide from offices in Irvine, Los Angeles, Torrance, Inland Empire, San Diego, San Francisco, and Sacramento.
What Happens When a Trustee Breaches Fiduciary Duty?
Can I sue a trustee for breach of fiduciary duty in California?
Yes. Under California Probate Code §16420, beneficiaries can petition the court to hold a trustee personally liable for any loss resulting from a breach of trust. If the court finds the trustee breached their fiduciary duties, it can order the trustee to restore the trust to its value before the breach, pay interest on misused funds, and cover the beneficiaries’ reasonable attorney fees. Courts take these cases seriously—trustees who profit from self-dealing may be required to disgorge all profits, not just restore losses.
What are common examples of trustee breach of fiduciary duty?
Common breaches include self-dealing (using trust assets for personal benefit), failing to provide accountings, making imprudent investments, favoring one beneficiary over another, commingling trust funds with personal funds, and delaying distributions without justification. Under California Probate Code §16009, a trustee also breaches their duty by delegating responsibilities that require personal judgment—like distributing assets to beneficiaries—to someone else without proper oversight.
How do I remove a trustee in California?
Beneficiaries can petition for trustee removal under California Probate Code §15642. The court will consider factors including breach of trust, unfitness, hostility toward beneficiaries, and failure to cooperate with co-trustees. In Estate of Giraldin (2012), the California Court of Appeal upheld removal of a trustee who created a hostile environment with beneficiaries, even where financial harm wasn’t proven—demonstrating that courts protect beneficiaries’ right to transparent, professional administration.
Protecting Your Inheritance Starts With Knowing Your Rights
A trustee’s fiduciary duty isn’t just a guideline—it’s a legal obligation backed by California’s Probate Code and enforced by California courts. If a trustee is failing to act in your best interest, refusing to provide information, or using trust assets improperly, you have the right to take action.
You don’t have to accept mismanagement or hope the trustee eventually does the right thing. California law gives beneficiaries powerful tools to protect their inheritance.
Get started with The Legacy Lawyers. We serve clients throughout California from offices in Irvine, Los Angeles, Torrance, Inland Empire, San Diego, San Francisco, and Sacramento.
Frequently Asked Questions About Trustee Fiduciary Duties
What is the statute of limitations for suing a trustee in California?
Under California Probate Code §16460, beneficiaries generally have three years from the date they discover (or reasonably should have discovered) a breach of trust to file suit. However, if the trustee provides a final account that discloses the breach, the limitations period may be shortened. Consult a California trust litigation attorney promptly to preserve your rights.
Can a trustee be held personally liable for losses?
Yes. California Probate Code §16420 authorizes courts to hold trustees personally liable for losses resulting from breach of trust. This means the trustee may be required to repay the trust from their own personal assets—not just from trust property. Courts can also require trustees to pay interest and beneficiaries’ attorney fees.
Does a trustee have to give me a copy of the trust?
Yes. Under California Probate Code §16061.7, trustees must notify beneficiaries within 60 days after the trust becomes irrevocable and provide a complete copy of the trust terms upon reasonable request. If a trustee refuses, beneficiaries can petition the court to compel disclosure under California Probate Code §17200.
What should I do if the trustee won’t provide an accounting?
You can petition the California probate court under California Probate Code §17200(b)(7) to compel the trustee to provide a formal accounting. If the court orders the accounting and the trustee still refuses, they may face sanctions, removal, and liability for your attorney fees incurred in bringing the petition.
When should I hire an attorney for a trustee dispute?
You should consult a California trust litigation attorney as soon as you have concerns about a trustee’s conduct—before assets are dissipated or evidence is lost. The Legacy Lawyers offer consultations to help beneficiaries understand their rights and determine whether legal action is warranted.
This article references publicly available information including California Probate Code, California case law, and published legal guidance. The information provided is specific to California law and is for educational purposes only—it does not constitute legal advice or create an attorney-client relationship. Laws change and every case is unique. For guidance on your specific situation, consult a licensed California attorney. Contact The Legacy Lawyers at thelegacylawyers.com/get-started for a consultation.
