When Trust Becomes Betrayal: Removing a California Trustee for Breach of Duty

Being appointed as a Trustee carries significant responsibility. It’s a role built on trust, requiring the highest fiduciary duty to manage assets prudently and act solely in the best interests of the beneficiaries. Unfortunately, sometimes that trust is broken. When a trustee fails in their duties—whether through negligence, incompetence, or intentional misconduct—beneficiaries aren’t helpless. California law provides remedies, including the drastic step of seeking the trustee’s removal.

Being appointed as a Trustee carries significant responsibility. It’s a role built on trust, requiring the highest fiduciary duty to manage assets prudently and act solely in the best interests of the beneficiaries. Unfortunately, sometimes that trust is broken. When a trustee fails in their duties—whether through negligence, incompetence, or intentional misconduct—beneficiaries aren’t helpless. California law provides remedies, including the drastic step of seeking the trustee’s removal.

A breach of trust occurs when a trustee violates any duty imposed by the trust document itself or by California law (found largely in the Probate Code). This encompasses a wide range of potential missteps, including:

• Violating the Duty of Loyalty: Engaging in self-dealing (using trust assets for personal benefit), favoring one beneficiary over another (breach of impartiality), or having conflicts of interest.
• Violating the Duty of Care: Failing to manage trust assets according to the prudent person standard, making improper investments (breach of prudent investor act), commingling trust funds with personal funds, or general negligence in administration.
• Failing to Account: Neglecting the duty to provide beneficiaries with required information or a formal accounting of trust activities.
• Exceeding Authority: Taking actions not permitted by the trust document or law.

Abuse of Discretion: Improperly exercising powers granted under the trust, even if those powers involve “absolute discretion.”

A breach of trust occurs when a trustee violates any duty imposed by the trust document itself or by California law (found largely in the Probate Code). This encompasses a wide range of potential missteps, including:

• Violating the Duty of Loyalty: Engaging in self-dealing (using trust assets for personal benefit), favoring one beneficiary over another (breach of impartiality), or having conflicts of interest.
• Violating the Duty of Care: Failing to manage trust assets according to the prudent person standard, making improper investments (breach of prudent investor act), commingling trust funds with personal funds, or general negligence in administration.
• Failing to Account: Neglecting the duty to provide beneficiaries with required information or a formal accounting of trust activities.
• Exceeding Authority: Taking actions not permitted by the trust document or law.

Abuse of Discretion: Improperly exercising powers granted under the trust, even if those powers involve “absolute discretion.”

If a trustee’s actions constitute a serious breach or demonstrate unfitness, beneficiaries or co-trustees with legal standing can file a petition with the California Probate Court requesting the trustee’s removal. Probate Code § 15642 outlines specific grounds, including:

• A serious or repeated breach of trust.
• The trustee’s incapacity, insolvency, or other unfitness to administer the trust.
• Failure or refusal to act according to the trust’s terms.
• Hostility or lack of cooperation between co-trustees that significantly impairs trust administration.
• Charging excessive compensation.
• Other “good cause” shown to the court.

If a trustee’s actions constitute a serious breach or demonstrate unfitness, beneficiaries or co-trustees with legal standing can file a petition with the California Probate Court requesting the trustee’s removal. Probate Code § 15642 outlines specific grounds, including:

• A serious or repeated breach of trust.
• The trustee’s incapacity, insolvency, or other unfitness to administer the trust.
• Failure or refusal to act according to the trust’s terms.
• Hostility or lack of cooperation between co-trustees that significantly impairs trust administration.
• Charging excessive compensation.
• Other “good cause” shown to the court.

The process typically involves filing a petition outlining the grounds for removal and presenting supporting evidence to the court. Beneficiaries might also seek the immediate suspension of the trustee to prevent further harm while the removal petition is pending.

If the court orders removal, the trustee must immediately cease acting, prepare a final accounting, and transfer all trust assets to a court-appointed successor trustee. Importantly, the court can also impose a surcharge against the removed trustee, holding them personally liable to reimburse the trust for any financial losses caused by their breach of duty.

The process typically involves filing a petition outlining the grounds for removal and presenting supporting evidence to the court. Beneficiaries might also seek the immediate suspension of the trustee to prevent further harm while the removal petition is pending.

If the court orders removal, the trustee must immediately cease acting, prepare a final accounting, and transfer all trust assets to a court-appointed successor trustee. Importantly, the court can also impose a surcharge against the removed trustee, holding them personally liable to reimburse the trust for any financial losses caused by their breach of duty.

Seeking trustee removal involves complex trust litigation. Successfully petitioning the court requires a thorough understanding of fiduciary duties, probate procedures, and rules of evidence. An experienced trust litigation attorney can help gather necessary evidence, draft compelling court documents, navigate hearings, and advocate effectively for your rights and the protection of the trust.

If you are a beneficiary or co-trustee who suspects a breach of trust or believes the current trustee is unfit to serve, don’t wait for the situation to worsen. Contact Burrey Law Group today. We represent clients throughout the Bay Area in complex trust disputes, including actions for trustee removal and surcharge.

Contact us for a confidential consultation.

Seeking trustee removal involves complex trust litigation. Successfully petitioning the court requires a thorough understanding of fiduciary duties, probate procedures, and rules of evidence. An experienced trust litigation attorney can help gather necessary evidence, draft compelling court documents, navigate hearings, and advocate effectively for your rights and the protection of the trust.

If you are a beneficiary or co-trustee who suspects a breach of trust or believes the current trustee is unfit to serve, don’t wait for the situation to worsen. Contact Burrey Law Group today. We represent clients throughout the Bay Area in complex trust disputes, including actions for trustee removal and surcharge.

Contact us for a confidential consultation.