Serving as a trustee is a great responsibility. Most trustees take their duties seriously and are diligent in carrying them out. Despite this, mistakes can happen, and complicated family dynamics can lead to disputes. When conflicts or concerns arise, a trustee defense attorney can help achieve a fair resolution while protecting the interests of the trustee.

The attorneys of Fox Law have years of experience in trust and estate litigation, including trustee defense. We take a thorough, investigative approach to uncovering the truth and protecting our clients’ interests.

What a California Trustee Defense Attorney Does

A trustee defense attorney defends trustees in trust disputes or related litigation. The trustee may be accused of failing to fulfill their duties or actively causing harm. Additionally, their decisions about how to manage trust assets may be questioned by trust beneficiaries or other interested parties.

Trustee Duties Under California Law

The duties of a California trustee are governed by the California Probate Code, Divisions 9 and 10, especially §§16000-§§16105. Some of the most important duties include:

• Loyalty (§16002): The trustee is obligated to manage the trustee solely in the interest of the beneficiaries.
• Impartiality (§16003): In trusts with multiple beneficiaries, the trustee must act impartially.
• Prudent Administration (§16040): The trustee must exercise reasonable care, skill, and caution in administering the trust.
• Prudent Investment (§§16045-16054): Investment decisions must be made in light of the overall portfolio strategy, not in isolation.
• Diversification (§16048): The trustee must diversify trust investments unless doing so would not be prudent.
• Segregation of Trust Property (§16009): Trust property must be kept separate from the trustee’s own property and from other trusts.
• Control and Preservation of Trust Property (§16006-16007): The trustee must take reasonable steps to control and protect trust assets.
• Inform and Account (§§16060-16069): The trustee must keep beneficiaries reasonably informed of trust administration and provide an annual accounting to beneficiaries if requested.
• Non-Delegation (§16012): The trustee must not delegate duties that the creator of the trust reasonably expected them to carry out themselves.

In general, the standard for trustees is that of a “prudent person.” In administering the trust, the trustee should act as a prudent person would in handling their own affairs. Professional trustees are generally held to a higher standard than non-professionals such as family members acting as trustees.

Common Claims Against California Trustees

Most claims against trustees in California fall under the umbrella of “breach of fiduciary duty:” in other words, failing to carry out their duties as a trustee. These claims may include:

• Self-dealing or conflict of interest
• Excessive trustee compensation
• Failing to make required distributions
• Making improper distributions
• Favoring one beneficiary over another
• Failing to provide trust accountings or keep beneficiaries reasonably informed
• Commingling trust assets with other funds
• Improper sale of trust assets
• Failing to prosecute (pursue) claims belonging to the trust

Depending on the circumstances, a trustee found in breach of their duties could be removed, ordered to pay restitution to the trust (surcharge), or both. Allegations are a very real risk, but can sometimes be unfounded or based on a misunderstanding. It is critical for a trustee to be represented by a California trustee defense attorney who can protect their interests and ensure that the truth comes to light.