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, 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?
If you are asking yourself: Can a trustee go to jail for stealing from a trust? The answer is yes, 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).
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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