In some ways, a trustee is the guardian of the assets held by a trust and the legacy of the person who leaves it behind. When someone is appointed the trustee of a trust, this signals a tremendous amount of faith in their integrity. Unfortunately, for some trustees, the temptation to abuse their position for their gain is too great, and they steal from the trust.
If this has happened to you and the trust you are beneficiary of, you are likely wondering, Can a trustee go to jail for stealing from a trust? While the answer is technically yes, it’s more complicated than that. Even if their transgression doesn’t warrant criminal charges against the trustee, litigation is crucial to protect your inheritance and hold them accountable.
At Gokal Law Group, we have helped countless beneficiaries enforce their rights to hold reprehensible trustees accountable, and we have successfully recovered millions of dollars in settlements and trial verdicts for clients. Here’s when a trustee can go to jail for stealing from a trust.
Can a Trustee Go to Jail for Stealing from a Trust in California?
Yes, a trustee can go to jail for stealing from a trust in California, but this is a rare occurrence.
Technically, a trustee can go to jail for theft if convicted of a criminal offense, but when a beneficiary sues a trustee for sealing from a trust, the matter is typically handled as a civil matter in probate court rather than a criminal matter in criminal court.
Probate court does not send people to jail; this only happens in criminal court. But that doesn’t mean they won’t be held accountable. A premier trust litigation attorney can still help ensure that you receive damages and restore the trust when you prove theft in probate court.
Still, in extreme cases where trustees have stolen particularly large sums, criminal charges of embezzlement and criminal misappropriation of property could follow.
Related Article: What is Family Trust Embezzlement?
When Can a Trustee Go to Jail for Stealing from a Trust in California?
Now, when can a trustee go to jail for stealing from a trust? The deciding factor in whether stealing from a trust is a criminal felony is the amount they have stolen (i.e., grand theft vs. petty theft).
When Is Stealing from a Trust a Felony or Misdemeanor?
Per California law, embezzling trust funds or property valued at $950 or less is a misdemeanor offense and is punishable by up to 6 months in county jail. If a trustee embezzles more than $950 from the trust, they can be charged with felony embezzlement, which can result in a 3-year jail sentence. More often, however, the penalties for trust embezzlement are:
- Removing the trustee
- Reducing or eliminating the trustee’s fee, which comes out of the trust.
- Returning the stolen property or assets and requiring them to pay double, treble, or punitive damages, depending on the severity.
- Requiring the trustee to pay for the petitioner’s attorney fees and costs.
“Just because a trustee may not receive a jail sentence doesn’t mean litigation isn’t worth it. While they may not be held criminally liable, they can still be held accountable in probate court and forced to repay what they have stolen, pay substantial damages, vacate their position, and pay your attorney fees. Failure to take any action can severely diminish your inheritance, which has devastating consequences on your and your family’s legacy that ripple across generations. So acting quickly and working with a trust litigation lawyer is crucial, even if you cannot pursue criminal charges.”
– Alison S. Gokal, Partner, Gokal Law Group
Related Article: California Trust Law: Can a Trustee Be Held Personally Liable?
Has a Trustee Embezzled From the Trust? Schedule a Consultation to Recover What They Stole and Hold Them Accountable!
So, can a trustee go to jail for stealing from a trust in California? Yes, they might, but just because that may not be an option doesn’t mean you shouldn’t pursue litigation. When you work with a premier trust litigation attorney, they will take the time to review your case and leverage every possible resource to hold the trustee accountable, whether it’s in probate court or criminal court, so that you can recover what was lost, compel the trustee to pay damages, defend your inheritance, and preserve the legacy of the person who created the trust.
Visit our Contact Page to schedule a consultation to secure your inheritance, hold the trustee with ill intentions accountable for damages, and safeguard your inheritance.
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6 Responses
Not being payed by trustee laura Smith 8839 hillslope spring valley.37000 dollars inthe account .she may have stolen the money
My husbands sister was trustee of his trust. We already have an attorney that is working on the embezzlement. She has gotten $70,000.00 back from $150,000.00. His sister has said she can’t pay any more. What we want to know is can he prosecute her criminally for the the theft. We live in Kentucky
I had a trustee for years and they were so pissed to pay bills like rent,lights and fines. they never paid $45 per month on power,and only made 2 payments on my fines but gave me a print out showing a bunch of payments and dates but department of justice contacted me and informed me only 2 payments were ever made!this went on for 20 yrs until I started noticing things and I lived off $160 per month because they were stealing from me all that time and now I’m stuck having to pay a fine of over $2000 and it would have been payed off by now if they did what they said they were doing!!! I have all the evidence proving everything ! what kind of lawyer can help me???
My Sister is Missleding my trust funds money and I need to put a stop to it and I need a lawyer and take her to jail for taking money out of my trust funds money and she is bye and other stuff with my trust funds money and I need a lawyer for this account please
I’m needing help with my husband and his grandma passing. He was his grandma child maybe even more than his aunt’s and uncles and she had a very successful business and lots of property.y husband doesn’t understand why. No one has even talked to him about his. Trust orr hi. Beings a beneficiary for anything from his grandma’s life there is something off and his family wouldn’t want him to even know there was a trust account and a success trustee . How can we find out for sure if he is owed an inheritance his name is Steven D kateley and we are from myrtle creek Oregon his grandma name was Bonnie Faye ogle from the same city possible trustees are Belinda whightington and Goldie Dennison not sure about how to spell it. Everyone in the family wouldn’t want Steven to get anything they wouldn’t tell him if he was the right full owner to the trust can you help me please my husband thinks his grandma just didn’t leave him anything .and that the truth she wouldn’t have done that to him
Sister held onto 100k at completion of parents trust in July, 2023. She did this to cover litigation costs in case I chose to file suit over her mismanagement and unequal treatment of trustees, because I wouldn’t sign a release of liability. To get her to send final funds, I signed and delivered said release in April of 2024, as well as January, 2025. She has not responded to my multiple inquiries, and has failed to give accounting, with absolutely no contact, and it was due July 18, 2024. At this point, she has proven to be embezzling from the trust. I am owed in excess of 29,000.00 and would like to pursue damages and attorney fees. Her share was much larger than this, and she has many assets if necessary. She believes she can get away with this due to the fact that she resides in Georgia, I reside in Oregon, and the trust was established in Napa, CA.