Naming siblings as co-trustees is a common choice for parents who want to ensure fairness and balance in their estate plan. However, this well-intentioned decision often backfires when personalities clash or when a sibling mishandles a trust. When one individual decides to ignore the rules of the trust or the California Probate Code, the entire administration can grind to a halt, leaving the estate vulnerable.
At Gokal Law Group, we specialize in breaking these deadlocks and protecting compliant trustees from the liability of their partner’s mistakes. If you are currently dealing with one trustee acting without the other or facing a total lack of transparency, you need a strategic legal path forward to protect the assets. This guide outlines how to handle co-trustee disputes and preserve the integrity of the estate while fulfilling your fiduciary obligations.
The Legal Reality of Co-Trustee Obligations in California
Under California law, co-trustees are generally required to act unanimously unless the trust document explicitly states otherwise. This requirement is designed to provide a system of checks and balances, but it becomes a massive hurdle when you are fighting over a trust with a sibling who has gone rogue. If your sibling is making unilateral decisions, they are likely in breach of their fiduciary duties, which places the entire trust at risk of litigation.
If you are a named co-trustee alongside a sibling who begins mishandling the trust, selling assets or making distributions without your consent, your own professional and financial reputation is on the line. Passive involvement is not a defense in the eyes of the court. In fact, the law requires you to be an active participant in the administration. You have an affirmative duty to intervene if you know a co-trustee is committing a breach, or you may be held personally liable for the resulting losses even if you didn’t personally benefit.
With decades of experience navigating the high-stakes world of fiduciary litigation, Abbas Gokal has witnessed how passive co-trustees often find themselves in legal jeopardy by failing to act. Drawing on his deep understanding of the California Probate Code and his record of defending compliant trustees, he provides a sobering reality check regarding “silent” participation.
“Many clients come to us under the impression that they can simply ‘opt out’ of their sibling’s bad decisions by staying quiet. In California, silence is often viewed as acquiescence, and you could be held just as responsible for the financial fallout as the person who actually spent the money,” says Abbas K. Gokal, a Managing Partner at Gokal Law Group who serves as a Judicial Liaison for the Trusts & Estates Section of the Orange County Bar Association.
Signs A Sibling Is Breaching Their Fiduciary Duty
A pattern of behavior emerges, suggesting a lack of respect for the legal process and the beneficiaries, when a sibling is breaching their fiduciary duty. You might notice that bank statements are being withheld or that personal expenses are being paid out of the trust account under the guise of “administrative costs.” These red flags are the primary indicators that co-trustee disputes are about to escalate into full-blown litigation that could drain the estate’s resources.
Common behaviors that indicate a sibling is breaching their fiduciary duty include:
- Refusing to provide a formal accounting to beneficiaries or the co-trustee after multiple requests.
- Self-dealing, such as living in a trust-owned property rent-free or selling assets to themselves at a significant discount.
- Failing to diversify investments or allowing trust property to fall into disrepair, leading to a “waste” of assets.
- Making “executive decisions” without consulting the other co-trustee, leading to a scenario of one trustee acting without the other.
If you recognize these patterns, documenting every interaction is essential for your legal protection. Keep a detailed log of denied requests for information and copies of all correspondence, especially emails and texts where you expressed concern. This evidence becomes the foundation of your case if you eventually need to petition the court to seek how to become the only trustee.
Related Article: What Are 5 Common Signs of Fiduciary Misconduct in California?
How to Resolve Co-Trustee Disputes in California
When communication breaks down, the administration of the trust stalls, which can lead to lawsuits from frustrated beneficiaries who are waiting for their inheritance. You cannot simply wait for the other person to change their mind; the law expects you to take action to rectify the situation. In many cases, a formal letter from a specialized firm is enough to remind a sibling of their personal liability and their duty to comply.
However, if professional reminders fail, the next step involves court intervention through a petition for instructions. A judge can issue orders to compel a trustee to act or, in more severe cases, suspend their powers while an investigation occurs. Fighting over a trust is exhausting, but taking proactive legal steps is the only way to ensure the assets are not depleted by a sibling’s poor judgment or lack of expertise.
Related Article: What Are Signs of Inheritance Theft?
How to Become the Only Trustee in California
Co-trustee removal is the most viable option for those seeking to become the only trustee in California. To succeed in this, you must prove to the court that the co-trustee’s continued service is detrimental to the trust’s purposes. This is a high evidentiary bar, but it is necessary when a sibling mishandes a trust, refuses to step down voluntarily, or continues to act in bad faith.
The court considers several factors when deciding on removal:
- Has the trustee committed a significant violation of their duties, such as self-dealing or commingling funds?
- Is there a lack of cooperation between co-trustees that substantially impairs the trust’s ability to function?
- Is the trustee unfit to perform their duties due to incapacity, substance abuse, or persistent failure to execute the trust’s terms?
As a dedicated advocate for beneficiary rights, Alison Gokal focuses her practice on ensuring that the original intent of a trust’s creator is never undermined by a trustee’s misconduct. Her strategic approach to trust litigation is rooted in her ability to successfully petition the court for the removal of fiduciaries who have breached their sacred duties.
The court’s primary concern is always the protection of the trust assets and the intent of the settlor. If we can demonstrate that a co-trustee’s behavior is actively harming the estate, the court has broad powers to remove them and appoint a sole trustee or a professional neutral,” explains Alison Gokal, a Managing Partner at Gokal Law Group who serves as a Co-Chair of the Orange County Bar Association’s Community Outreach Committee.
Related Article: Can You Sue a Trustee for Negligence in California?
How to Protect Yourself from Successor Liability
One of the most dangerous positions to be in is that of a “silent” co-trustee who hopes the problem will simply go away. If you allow a co-trustee to continue their behavior without formal objection, beneficiaries can sue both of you for the loss in value of the trust. Protecting yourself requires formalizing your objections in writing and, if necessary, filing a petition for instructions with the probate court.
By seeking “instructions” from the court, you are essentially asking a judge to weigh in on a dispute and provide a roadmap for how to proceed legally. This grants you a layer of judicial protection that no private agreement can offer. It shifts the burden of the decision from your shoulders to the court, effectively neutralizing the conflict and preventing you from being blamed for the eventual outcome of co-trustee disputes.
How to Approach a Sibling Mishandling a Trust
The emotional toll of these disputes often outweighs the financial one, as it pits family members against one another during an already difficult time. You want to honor your parents’ wishes, but you are stuck in a cycle of arguments and legal threats that feel personal. Our role as your counsel is to act as the buffer, handling the high-stakes communication so you can focus on your life while we focus on the law and Trust & Probate Disputes.
We understand the nuances of Trustee Duties and how to leverage the California Probate Code to your advantage. Whether the solution is mediation, a court-ordered accounting, or a petition for removal, we advocate relentlessly for the compliant trustee. You do not have to navigate the fallout of a sibling mishandling a trust alone or feel guilty for enforcing the rules of the estate.
“Litigation is often the last resort, but when a sibling refuses to acknowledge their legal boundaries, it becomes the only way to save the family legacy. Our goal is to resolve these disputes with as much efficiency—and as little collateral damage—as possible,” says Nicholas D. Porrazzo, a Partner at Gokal Law Group who earned his Juris Doctor from Santa Clara University School of Law, where he served as a Technical Editor for the Santa Clara Law Review and received various awards for excellence in legal research and writing.
Reclaim Control of the Estate
The moment you realize that a family member is not acting in the best interests of the beneficiaries, the clock starts ticking on your liability as a co-trustee. Delays only lead to further asset depletion, missed tax deadlines, and increased legal exposure for everyone involved. Taking the lead now ensures that the legacy your loved ones worked so hard to build is not dismantled by one person’s poor choices or lack of transparency.
If you are tired of fighting over a trust and want to move toward a resolution that protects the beneficiaries and your own peace of mind, it is time to consult with experts. We have a proven track record of resolving these exact scenarios with precision and firm advocacy. Let us help you navigate the complexities of Trust & Probate Disputes and restore the balance of power within the administration.
Contact Gokal Law Group today to schedule a consultation and protect your family’s future.
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