In California, what can be done about a breach of trust?
If a trustee commits or threatens to commit a breach of trust, a beneficiary or co-trustee may commence a proceeding to: (1) compel or enjoin the trustee from breaching the trust, (2) compel the trustee to compensate for the breach, (3) appoint a receiver or temporary trustee, (4) remove the trustee, (5) set aside acts of the trustee, (6) reduce or deny compensation of the trustee, (7) impose an equitable lien or a constructive trust on trust property, or (8) trace and recover wrongfully disposed of trust property.
When a trustee’s breach of duty causes loss, a beneficiary, successor trustee, or co-trustee may seek damages against the trustee to redress the loss. The object of the damages awards is two fold: (1) to compensate for losses sustained as a result of the breach, and (2) to induce trustees to comply with their obligations by making them disgorge any profit or by imposing a penalty. If a trustee is found to have committed a breach, he or she may be charged with any loss or depreciation plus interest.