The moment you start to suspect trust mismanagement, the ground beneath you shifts. That sibling who promised to “handle everything” after your parents’ passing now dodges your calls. Distributions stall. Questions multiply. And the trust—that legal promise of care and legacy—starts to feel like a locked door with no key. You’re left wondering, what happens if a trustee steals from the trust in California?
The short answer is that mismanagement is serious, it’s a breach of fiduciary duty, and it’s potentially criminal. But more importantly, California law provides a path forward. With the right legal team, you can hold the trustee accountable, recover stolen assets, and restore some measure of justice to an already painful process.
At Geremia & Cullen, PC, we guide clients through trust disputes with honesty, clarity, and compassion. We don’t rush to court if a better resolution is possible. We listen, explain, and act with precision. We also approach every case as a threefold endeavor: the legal case, the emotional case, and the process. We understand that trust litigation isn’t just about money. It’s about closure.
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What Happens If a Trustee Steals from the Trust?
When a trustee misuses or outright steals trust assets, they violate the most fundamental duty they owe: fiduciary loyalty. California law treats this breach seriously. Under the California Probate Code, a trustee has a legal obligation to act solely in the interest of beneficiaries.
When they betray that trust, beneficiaries have multiple options, including filing court petitions for removal, pursuing financial recovery, and even referring the matter to law enforcement in extreme cases. Through court-ordered accountings, surcharge petitions, and asset recovery actions, you can take steps to reclaim what the trustee took and protect what remains.
Is Stealing from a Trust a Felony in California?
In many cases, the answer to “Is stealing from a trust a felony?” is yes. When a trustee steals from a trust or commits fraud, the state may pursue criminal charges, especially if the amount stolen is substantial or the misconduct is willful.
California law defines theft broadly to include embezzlement. Embezzlement of trust assets is considered theft by a fiduciary, and under California law, it is a felony if the value of the misappropriated assets exceeds $950.
Felony convictions can carry prison time, restitution orders, and court fees. That said, few trust disputes end with a criminal trial. Probate court handles most disputes, where the goal is restitution, not revenge.
Misappropriation of Trust Funds by a Trustee: Signs of Trustee Misconduct You Shouldn’t Ignore
If you’re worried about misappropriation of trust funds by a trustee, pay attention to these common red flags:
- Unexplained delays—distributions dragging on with vague excuses or shifting deadlines;
- Lack of transparency—refusal to provide regular accountings or detailed financial records;
- Inappropriate spending—use of trust money for luxury goods, travel, or unexplained transfers;
- Conflict of interest—use of trust assets for the trustee’s own business or to benefit their spouse, partner, or friend; and
- Sudden changes—selling or moving assets without consultation or justification.
These signs don’t always confirm misconduct, but together, they create a pattern that you shouldn’t dismiss. In California, trustees have a duty to report information and account status to beneficiaries and to keep beneficiaries reasonably informed. If they fail to do so, it may be time to take legal action.
What are Legal Remedies for a Trustee Stealing from a Trust?
California courts provide a straightforward process to protect beneficiaries when things go wrong. If you suspect financial abuse or theft by a trustee, here are your options:
- Petition for an accounting. You can request a court-ordered review of the trust’s financial activity to uncover irregularities.
- File to remove the trustee. In the case of misconduct, you can ask the probate court to suspend or remove the trustee.
- Request a surcharge and damages. Courts may order the trustee to return all misused funds and pay additional penalties for losses caused by their misconduct.
- Freeze trust assets. If there’s immediate danger to trust property, you can ask the court to temporarily block access to those funds.
- Refer to law enforcement. In cases involving outright theft, a parallel criminal investigation may be necessary. However, civil recovery is typically the primary focus.
All of these remedies require proof; the sooner you act, the easier that becomes. That’s why early legal advice matters. A skilled attorney can assist in gathering documentation, drafting a petition, and presenting your case effectively before the court.
Hold the trustee accountable.
You don’t have to settle for silence or vague excuses. We’ll help you uncover the truth and take the next legal step.
How Geremia & Cullen, PC Can Help
If you’re facing the possibility of a trustee stealing from trust assets, you don’t have to figure it out alone. At Geremia & Cullen, we represent beneficiaries across California in trust and estate litigation with a focus on:
- Trustee removal and surcharge actions,
- Accounting disputes and asset recovery,
- Will and trust contests, and
- Elder financial abuse claims.
Led by Brian Geremia and Sarah Cullen, we combine deep legal experience with a commitment to ethical practice and clear communication. Brian has been named a Super Lawyers Rising Star three times and earned Platinum Client Champion recognition from Martindale for his outstanding service. Sarah is a fourth-generation Sacramentan and a former U.S. District Court judicial extern, bringing decades of trusted legal practice and community connection.
We work with disinherited heirs, frustrated beneficiaries, and families in crisis, always with the same goal: achieving a fair resolution and providing peace of mind. We also take some qualified cases on a contingency basis, meaning you won’t owe attorney’s fees unless and until we recover funds on your behalf. This arrangement allows beneficiaries to pursue justice, even when the trustee controls the finances.
If you suspect misappropriation of trust funds by a trustee, don’t wait for things to get worse. The longer misconduct persists, the harder it is to trace and the greater the financial and emotional costs. Reach out today. We’ll help you understand your options, gather the facts, and determine whether legal action is the next step.
