When you’re a trust beneficiary, a loved one’s trust and their trustee should protect you. But some trustees don’t take their responsibilities seriously, leaving you vulnerable and stressed. Fortunately, you can correct a trustee’s misconduct or remove a trustee without needing to do it alone.
At Geremia & Cullen, PC, we’ve helped countless clients resolve issues with trustee misconduct in California. With multiple five-star reviews and a track record of success, we’re here to help you understand your rights and protect your loved one’s wishes.
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Understanding a Trustee’s Duties
First and foremost, California law places a fiduciary duty on trustees. That means they must act with good faith and loyalty when managing trust assets. A trustee also has several core duties laid out in the California Probate Code, and they include:
- Following the terms of the trust;
- Acting in the best interest of the beneficiaries;
- Avoiding conflicts of interest, including self-dealing or benefiting from trust transactions;
- Keeping beneficiaries reasonably informed about the trust and its administration;
- Maintaining accurate records and providing annual (or more frequent) accountings to beneficiaries;
- Making prudent investments with trust assets; and
- Preserving and protecting trust property, including real estate, bank accounts, and personal items.
These duties aren’t optional. They are legal obligations, and a breach of trustee duties may give you the right to remove a trustee.
Grounds for Removing a Trustee
Sometimes, misconduct is obvious. But often, it begins subtly—delayed responses, vague financial reports, or unexplained asset changes. California law allows the removal of a trustee for:
- Committing a breach of trustee duties,
- Failing to manage trust assets properly,
- Being unfit to perform or incapable of performing trustee duties,
- Being hostile or not cooperating with co-trustees,
- Taking excessive compensation for trustee work,
- Failing to give an account or keep beneficiaries reasonably informed, and
- Misappropriating trust funds by a trustee.
You do not need to wait until there is significant harm to the trust. Early intervention can protect what your loved one intended to preserve.
Proof of Trustee Misconduct
The courts require evidence, not just suspicion, to remove a trustee from their office. Having proof of a trustee violating their duties is essential in supporting your case. Some common examples of misconduct include:
- Conflicted transactions. A trustee directing trust business to their own business or an associate’s business, or engaging in transactions that are directly adverse to a trust, is likely a conflict of interest. Make sure you understand the transactions affecting a trust and who is involved.
- Ignored information requests. A trustee must regularly provide beneficiaries with information related to the administration of the trust. If a trustee delays or refuses to share accountings, financial updates, trust documents, or trust decisions, this could indicate trustee misconduct.
- Bad timing on sales or purchases. Selling a property in a down market or purchasing investments without considering their suitability may violate the trustee’s duty to act prudently and preserve trust property.
- Excessive trustee compensation. A trustee is allowed reasonable compensation for their work, but taking fees that far exceed market rates, especially without proper notice or accounting, can constitute a serious breach.
- Failing to preserve assets. A trustee must inventory and care for trust property. Letting property deteriorate, ignoring upkeep, or selling without consultation may all be red flags.
It’s important to understand the red flags of trustee misconduct in California and gather proof early. A skilled estate attorney who knows what to look for can help you get the evidence you need.
How to Document Trustee Misconduct
If you suspect a breach of California trustee duties, start documenting immediately. Here’s how to protect yourself and the trust.
Request and Save Accountings Regularly
Generally, beneficiaries are entitled to accountings at least annually and upon reasonable request. Ask for accountings in writing, and save and review every report you receive. Reviewing trust accountings might quickly reveal trustee breaches that you can resolve immediately.
Track Market Rates for Property Transactions and Trustee Services
If the trustee is taking fees, compare them to those of other professional fiduciaries. And if your trustee is buying or selling assets, stay on top of prevailing interest and market rates. Document what’s typical in your county and state, and compare it to what the trustee is doing.
Keep a Running Inventory
Make a list of trust assets as you discover them, including property addresses, bank accounts, vehicles, and valuables. Update your list as you learn more and check to see what changes every time you review a new trust accounting.
Inspect Physical Property
If you have legal access, inspect the trust’s real estate and personal property. Take photos and note if the property is maintained, insured, and secure. If the trustee fails to keep trust property in good order, you might have grounds to remove them or recover damages.
Preserve All Communication
Save emails, letters, and texts between you and the trustee about trust information or reasonable requests for distribution. If the trustee fails to respond, note the communication dates and what you asked for. Written records of poor communication can be powerful evidence.
Talk to Co-Beneficiaries and Co-Trustees
If others are involved, ask what they’ve experienced. They may be seeing the same patterns, or different ones. Shared information helps build a fuller picture, and what others have to say might be great testimony in a removal hearing.
Worried your trustee isn’t playing fair?
You don’t have to sit back and hope for the best. We’ll help you understand the signs of trustee misconduct and take the right steps to protect what your loved one intended.
When to Get Legal Help
If you’re unsure whether what you’re seeing is misconduct, don’t wait to find out the hard way. A delay could mean irreparable harm to trust assets. At Geremia & Cullen, PC, we review trust documents, analyze trustee actions, and advise on the appropriate legal action. If the situation calls for it, we can pursue removing a trustee and recovering trust assets through the courts.
We Can Champion Your Rights
You don’t have to sit silently while a trustee mismanages what your loved one worked hard to build. California law gives you the tools to protect your inheritance and hold trustees accountable.
If you’re facing a situation involving trustee misconduct in California, contact our experienced and top-rated team at Geremia & Cullen, PC. We can give you clear answers, compassionate support, and fierce representation when you need it most. Need help now? Contact us by phone or online for a confidential consultation.
