When someone becomes a trustee, they assume certain powers and responsibilities. Those responsibilities not only extend to the trust but also to the beneficiaries who benefit from it. Trustees owe duties to beneficiaries to provide information, account for trust finances, protect trust property, and act in the beneficiaries’ best interests.
Beneficiaries can often feel frustrated and uncertain when a trustee fails to fulfill their fiduciary duties. But there are solutions: California law allows beneficiaries to enforce their trust beneficiary rights when a trustee fails to fulfill their responsibilities.
At Geremia & Cullen, we help Californians enforce their rights in trust disputes and trust administration matters. We focus on trust and estate litigation, and understand these disputes often arise during periods of grief, family conflict, and financial uncertainty. We help clients navigate the legal process and practical options for resolving a dispute, whether through negotiation, mediation, or the courtroom.
What Role Do Trustees Play in a Trust?
A trust is a legal arrangement in which one person manages property for the benefit of another. You can create a trust by:
- Deciding on the terms under which it will operate,
- Putting those terms in writing,
- Transferring property into it, and
- Naming a trustee to manage and beneficiaries to benefit from it.
Once you fund the trust, the trustee generally takes control of the trust’s administration, which refers to the management of trust property after death. The trustee may need to gather assets, pay debts, manage investments, file tax returns, communicate with beneficiaries, and distribute property according to the trust’s instructions.
What Duties Does a Trustee Have?
California trustees must follow the instructions of the trust and meet their fiduciary duties. These duties require trustees to manage trust property carefully, honestly, and in the beneficiaries’ best interests. Many beneficiary disputes arise when a trustee fails to satisfy these duties.
Duty to Follow the Trust Instructions
A trustee must administer the trust according to the settlor’s wishes as expressed in the trust document unless California law requires otherwise.
Duty to Act Prudently
Trustees must act with care, skill, prudence, and caution when administering the trust and managing its assets. They must actively protect trust property and make informed decisions that serve the beneficiaries’ interests.
Duty to Act in the Beneficiaries’ Best Interests
Trustees must place the beneficiaries’ interests ahead of their own. They typically cannot:
- Use trust assets for personal benefit,
- Take trust opportunities for themselves, or
- Mix personal finances with trust finances.
California law also requires trustees to treat beneficiaries fairly and impartially unless the trust terms specifically authorize unequal treatment.
Duty to Keep Beneficiaries Reasonably Informed
One of the most important trustee transparency obligations is the trustee’s duty to keep beneficiaries reasonably informed about trust administration. Depending on the circumstances, trustees may need to provide information regarding:
- Trust assets and debts,
- Investment performance,
- Property sales or transfers,
- Administrative expenses,
- Delays in distributions, and
- Significant trust decisions.
When trustees refuse to provide basic information, beneficiaries may have grounds to pursue legal action.
Duty to Provide Trust Documents
California law also requires trustees to provide certain trust-related documents and notices to beneficiaries. One required notice generally informs beneficiaries of their right to request a copy of the trust. Failure to provide this notice or provide a copy of the trust upon request can violate a trustee’s obligations.
Duty to Provide Accountings
California trustees also owe beneficiaries a duty to account for their management of trust assets. An accounting is a formal financial report that shows how the trustee handled trust property during a specific period.
A trust accounting generally includes information about:
- Income the trust receives,
- Money the trustee spends from the trust,
- Property the trust currently owns,
- Trustee compensation,
- Investment activity, and
- Distributions the trustee made to beneficiaries.
California law generally requires trustees to provide periodic accountings.
Trustee withholding information?
California beneficiaries have the right to trust information and accountings. If a trustee is not being transparent, we can help you protect your interests and enforce your legal rights.
What Trust Beneficiary Rights Exist?
Beneficiaries possess corresponding rights that correspond to trustees’ fiduciary duties under state law. California trust beneficiary rights generally include:
- Requesting information regarding trust administration,
- Receiving required notices and trust documents,
- Reviewing trust accountings,
- Questioning suspicious trustee conduct,
- Objecting to improper management of trust assets, and
- Seeking court intervention when trustees violate fiduciary duties.
Enforcing beneficiary rights to information often becomes a critical first step in resolving serious trust management problems.
How Can Beneficiaries Enforce Their Rights?
When trustees breach fiduciary duties or fail to provide required information, beneficiaries may have several legal options under California law. Your lawyer can help you understand your options and help you pursue them.
Request Information Informally
In some situations, misunderstandings or poor communication create disputes rather than intentional misconduct. Beneficiaries may begin by:
- Requesting updates in writing,
- Asking for financial records,
- Requesting a timeline for distributions, and
- Asking questions about trust expenses or investments.
Keeping written records of these requests may become important if disputes later escalate.
Use Mediation or Negotiation
Many trust disputes resolve through mediation or negotiated settlement discussions rather than contested court proceedings. Settlement and mediation may help:
- Reduce legal expenses,
- Resolve disputes more efficiently,
- Preserve family relationships, and
- Avoid lengthy litigation.
Because trust disputes often involve emotionally difficult family dynamics, mediation can be a more practical, less adversarial path to resolution than courtroom litigation.
Ask the Court to Intervene
If a trustee refuses to cooperate, beneficiaries may ask the court to intervene. A court may be able to:
- Compel the trustee to provide an accounting,
- Compel the trustee to provide information,
- Suspend or remove the trustee,
- Recover misused trust assets, or
- Force distributions required by the trust.
Beneficiaries who suspect serious problems may benefit from speaking with an attorney promptly.
Speak with a California Trust Litigation Attorney
California law gives beneficiaries important protections, including beneficiary rights to information, accountings, and fair trust administration. When trustees refuse to communicate or provide financial information, beneficiaries often feel powerless and uncertain about what steps they can take.
Geremia & Cullen can help. We regularly guide beneficiaries through understanding and enforcing their rights in trust and estate disputes throughout California.
If you believe a trustee is withholding information or mishandling trust assets, contact Geremia & Cullen today.
Legal References Used to Inform This Page
To ensure the accuracy and clarity of this page, we referenced official legal resources during the content development process:
- Trustee’s Duties in General, Cal. Prob. Code § 16000 (1990).
- Trustee’s Standard of Care, Cal. Prob. Code § 16040 (1996).
- Trustee’s Duty to Report Information and Account to Beneficiaries, Cal. Prob. Code § 16063 (1998).
