Breach of Fiduciary Duty by a Trustee in California: Warning Signs, Deadlines, and How to Remove a Trustee

Short answer: In California, a trustee must administer the trust solely in the beneficiaries’ interest, keep them reasonably informed, and account for the trust property (Probate Code §§ 16000–16015 and 16060–16062). If a trustee breaches those duties, a beneficiary can petition the probate court under Probate Code § 17200 to compel an accounting, recover losses, or remove the trustee (§§ 15642, 16420). Claims for breach of trust are generally barred three years after the beneficiary receives a written account that adequately discloses the claim, or three years after the beneficiary discovered or reasonably should have discovered it (§ 16460). A separate, much shorter 120-day deadline applies if you want to contest the trust itself (§ 16061.8).

Below we explain the trustee’s core duties, common warning signs, the key deadlines, and how the removal process works.

What Duties Does a California Trustee Owe?

The California Probate Code sets out a trustee’s duties in Chapter 1 of Part 4 of the Trust Law. The trust document can modify some duties, but the basic framework is:

Duty to administer the trust (§ 16000)

The trustee must administer the trust according to the trust instrument and, except as the law provides otherwise, according to the Probate Code.

Duty of loyalty and avoiding conflicts (§§ 16002, 16004)

The trustee must administer the trust solely in the interest of the beneficiaries. A trustee generally may not use trust property for personal profit or engage in transactions where the trustee’s personal interests conflict with the beneficiaries’.

Duty of impartiality (§ 16003)

When a trust has two or more beneficiaries, the trustee must deal with them impartially, taking into account any differing interests.

Duties to control, preserve, and make property productive (§§ 16006, 16007)

The trustee must take reasonable steps to take control of and preserve trust property and, subject to the trust terms, make it productive.

Duty to keep trust property separate (§ 16009)

Trust assets must be kept separate from the trustee’s own property and clearly identified as trust property. Commingling is a classic red flag.

Duty to enforce claims and defend the trust (§§ 16010, 16011)

The trustee must take reasonable steps to enforce claims of the trust and to defend actions that could result in a loss to the trust.

Duty not to delegate improperly (§ 16012) and duties among cotrustees (§ 16013)

A trustee may not delegate acts the trustee can reasonably be required to perform personally, and each cotrustee must participate in administration and use reasonable care to prevent a cotrustee from committing a breach.

Duty to use special skills (§ 16014)

The trustee must apply the full extent of the trustee’s skills. If the settlor relied on the trustee’s representation of having special skills, the trustee is held to the standard of the skills represented.

Duty to inform and account (§§ 16060–16062)

The trustee has a duty to keep beneficiaries reasonably informed of the trust and its administration (§ 16060), to respond to reasonable requests for information (§ 16061), and, subject to exceptions, to account at least annually, at the termination of the trust, and upon a change of trustee (§ 16062). When a revocable trust becomes irrevocable because of the settlor’s death, or there is a change of trustee of an irrevocable trust, the trustee generally must serve a formal notification under § 16061.7 within 60 days (on each beneficiary and, when the event is a settlor’s death, each heir of the deceased settlor).

Warning Signs a Trustee May Be Breaching Fiduciary Duty

No single sign proves a breach, but the following patterns often prompt beneficiaries to ask questions or seek legal advice:

• Silence. No § 16061.7 notification after a settlor’s death, no responses to written requests for information, or no accountings over long periods.
• Commingling. Trust money deposited into the trustee’s personal account, or trust and personal funds mixed.
• Self-dealing. The trustee buys, rents, or lives in trust real estate on favorable terms, pays themselves or relatives from trust funds without authorization, or sells trust property to a related person.
• Unexplained losses or delays. Assets left unmanaged, property allowed to deteriorate, taxes or insurance unpaid, or distributions delayed far beyond what the trust requires without explanation.
• Favoritism. One beneficiary (often the trustee) receives information, distributions, or use of property that others do not.
• Excessive fees. Trustee compensation or professional fees that look out of proportion to the work being done.
• Refusal to provide the trust document. Beneficiaries who request the terms of the trust under § 16060.7 or § 16061.5 are not given a copy.
• Vulnerable-settlor concerns. Large transfers or trust amendments benefiting the trustee shortly before an elderly settlor’s death, which may also raise financial elder abuse issues.

If you are seeing several of these, it can help to start with a written request for information and an accounting. You can read more about beneficiary rights in California.

Key Deadlines Beneficiaries Should Know

Deadlines in trust litigation can be short and depend on the facts. Two of the most important are often confused:

The 3-year deadline for breach of trust claims (Probate Code § 16460)

Under § 16460(a)(1), if a beneficiary receives an interim or final written account or other written report that adequately discloses the existence of a claim, the claim is barred unless a proceeding is started within three years after receipt of that account or report. An account adequately discloses a claim if it gives enough information that the beneficiary knows of the claim or reasonably should have inquired into it.

Under § 16460(a)(2), if the account does not adequately disclose the claim, or no written account is received, the claim is barred unless filed within three years after the beneficiary discovered, or reasonably should have discovered, the subject of the claim.

The 120-day deadline to contest a trust (Probate Code § 16061.8)

If you were served with the trustee’s notification under § 16061.7(a)(1), you generally may not bring an action to contest the trust more than 120 days from the date the notification was served, or 60 days from the date a copy of the trust terms is delivered to you during that 120-day period, whichever is later.

This deadline concerns challenges to the validity of the trust (for example, lack of capacity or undue influence). It is different from a claim that the trustee is mismanaging a valid trust. Many families have both issues at once, so it is worth getting advice early. See our page on trust and will contests.

What Remedies Are Available for Breach of Trust? (Probate Code § 16420)

If a trustee commits or threatens to commit a breach of trust, a beneficiary or cotrustee may start a proceeding for any appropriate purpose listed in § 16420(a), including to:

1. Compel the trustee to perform the trustee’s duties.
2. Enjoin the trustee from committing a breach of trust.
3. Compel the trustee to redress a breach by payment of money or otherwise.
4. Appoint a receiver or temporary trustee to take possession of and administer the trust property.
5. Remove the trustee.
6. Set aside acts of the trustee (subject to § 18100).
7. Reduce or deny the trustee’s compensation.
8. Impose an equitable lien or constructive trust on trust property (subject to § 18100).
9. Trace wrongfully disposed trust property and recover it or its proceeds (subject to § 18100).

Section 16420(b) adds that these remedies do not prevent use of other remedies available by statute or common law. Section 16440 addresses the measure of a trustee’s liability for losses caused by a breach. Where property was wrongfully taken or concealed in bad faith, Probate Code § 859 may also be relevant.

How to Remove a Trustee in California

Who can ask

Under § 15642(a), a trustee may be removed according to the trust instrument, by the court on its own motion, or on petition of a settlor, cotrustee, or beneficiary under § 17200.

Grounds for removal (§ 15642(b))

The statutory grounds include: – The trustee has committed a breach of the trust. – The trustee is insolvent or otherwise unfit to administer the trust. – Hostility or lack of cooperation among cotrustees impairs administration. – The trustee fails or declines to act. – The trustee’s compensation is excessive under the circumstances. – The sole trustee is a person described in § 21380(a) (for example, the drafter of the instrument or a care custodian), subject to the exceptions in the statute. – The trustee is substantially unable to manage the trust’s financial resources or to resist fraud or undue influence. – Other good cause.

Protecting assets while the petition is pending (§ 15642(e))

If trust property or a beneficiary’s interests may suffer loss while a removal petition is pending, the court may compel the trustee to surrender trust property to a cotrustee, receiver, or temporary trustee, and may suspend the trustee’s powers as needed.

Fee risk for bad-faith petitions (§ 15642(d))

If the court finds a removal petition was filed in bad faith and that removal would be contrary to the settlor’s intent, it may order the petitioner to bear costs, including reasonable attorney’s fees. This is one reason to document concerns carefully before filing.

The general process

While every case differs, a typical path looks like this: 1. Gather documents: the trust and amendments, any § 16061.7 notice, account statements, and correspondence. 2. Make a written request for information and an accounting under §§ 16060–16061 and 16062. Under § 17200(b)(7), a court petition to compel information or an account is generally available if the trustee has not responded within 60 days after a written request and nothing was provided in the six months before the request. 3. File a petition under § 17200 in the superior court of the proper county, asking to compel an accounting, surcharge the trustee, and/or remove and replace the trustee. 4. Serve notice on interested persons as the Probate Code requires. 5. Court hearings, which may include mediation, discovery, and an evidentiary hearing or trial.

Courts consider the specific facts and the settlor’s intent, so results vary from case to case. For trustees seeking to get administration right, see our trust administration page.

Trustee Disputes in Los Angeles and Across California

Our office is in Malibu, and we work with beneficiaries and trustees in trust matters throughout California, including in Los Angeles and surrounding counties. Local probate court rules and calendars differ, so practical timelines vary by county.

Frequently Asked Questions

What counts as a breach of fiduciary duty by a trustee in California?

A breach of trust is a violation by the trustee of any duty owed to a beneficiary (Probate Code § 16400). Common examples include self-dealing, commingling, failing to account or inform, favoring one beneficiary, and failing to preserve or manage trust assets.

How long do I have to sue a trustee for breach of trust?

Generally three years under Probate Code § 16460, measured either from receipt of a written account or report that adequately discloses the claim, or from when you discovered or reasonably should have discovered the claim. Specific facts can change the analysis, so do not wait.

Is the 120-day deadline the same as the deadline to sue a trustee?

No. The 120-day period in § 16061.8 applies to actions to contest the validity of the trust after you are served with the trustee’s notification. Claims that a trustee mismanaged a valid trust follow different rules, including § 16460.

Can a beneficiary demand an accounting?

Yes, in most cases. Trustees must keep beneficiaries reasonably informed and respond to reasonable requests (§§ 16060–16061), and must account under § 16062 subject to exceptions in § 16064, such as certain waivers. Even with a waiver, the court may compel an account on a showing that a material breach is reasonably likely (§ 16064). If a trustee refuses, a beneficiary can petition the court under § 17200 to compel an accounting.

Can a trustee be removed before the court decides the whole case?

The court may suspend a trustee’s powers or order trust property turned over to a cotrustee, receiver, or temporary trustee while a removal petition is pending if trust property or beneficiaries’ interests may suffer loss (§ 15642(e)).

Talk to a California Trust Litigation Attorney

If you are concerned about how a trust is being managed, attorney Maksim Lamash of Lamash Law Firm APC can review your documents and explain your options and deadlines. Call (424) 355-5565 or contact us to schedule a consultation.

Lamash Law Firm APC · 23465 Civic Center Way #116, Malibu, CA 90265 · (424) 355-5565

This article is general information, not legal advice. Attorney Advertising.