When a trustee breaches their fiduciary duty, it can feel like a deep personal betrayal – especially when the trust was created to protect your future. Many beneficiaries believe they have little power to fight back, but the truth is, California law gives you enforceable rights. You may be entitled to substantial financial recovery, even if the trustee’s misconduct isn’t classified as a crime.
At Gokal Law Group, we’ve helped countless beneficiaries hold trustees accountable—recovering millions of dollars in settlements and trial verdicts. If you suspect a breach, here’s what you need to know about your rights and the damages you may be able to recover.
Is Breach of Fiduciary Duty a Crime?
Under California Probate Code §§ 16000–16015, trustees owe strict duties of loyalty, impartiality, and prudent administration to the trust and its beneficiaries. A breach of fiduciary duty occurs when a trustee acts in a way that violates these duties, whether through mismanagement, neglect, or intentional misconduct.
Not all breaches are criminal. Examples of non-criminal breaches include:
- Failing to keep beneficiaries reasonably informed (Probate Code § 16060)
- Missing deadlines for mandatory accountings (Probate Code §§ 16062–16063)
- Favoring one beneficiary over another (Probate Code § 16003)
However, breaches can become criminal if they involve theft or embezzlement.
- In California, theft or embezzlement of $950 or less is generally petty theft under Penal Code § 490.2 — a misdemeanor.
- If the value exceeds $950, it can qualify as grand theft / felony embezzlement under Penal Code § 487, punishable by up to 3 years in county jail.
Even if the breach isn’t criminal, it can still cause significant harm to the trust. In some cases, non-criminal breaches cause greater financial loss than outright embezzlement—making civil litigation critical to recover damages.
Related Article: A Trust Attorney’s Guide: The Penalty for Breaching Fiduciary Duty
What Damages Are Recoverable for Breach of Fiduciary Duty Penalties?
Beneficiaries can often recover substantial compensation through civil litigation in probate court, regardless of whether the breach is criminal. Under Probate Code §§ 16420–16440, remedies may include:
- Lost income: For example, if a trustee rents trust property below market value, beneficiaries may recover the difference between the fair rental value and the discounted rent.
- Investment losses: Where a trustee fails to invest assets “as a prudent investor would” (Probate Code § 16047).
- Punitive damages: Available when the trustee acts with fraud, malice, or oppression (Civil Code § 3294).
- Attorney’s fees: If the court finds the trustee’s defense was without reasonable cause and in bad faith (Probate Code § 17211(b)).
- Trustee removal: Serious breaches are grounds for removal and replacement (Probate Code § 15642).
Just as importantly, if you succeed in court when you bring litigation against a trustee, they could also be required to pay your attorney fees. A breach is also grounds to remove and replace a trustee.
“A breach of fiduciary duty isn’t always going to be considered a criminal offense, but that doesn’t mean it’s not worth pursuing litigation. As soon as you suspect that the trustee has violated their duty, it is crucial to contact an attorney to hold them accountable and recover damages for the breach. Even if it is not a criminal offense, you can recover a considerable amount in California probate court through a civil suit.”
– Nicholas A. Porrazzo, Partner, Gokal Law Group
Related Article: California Trust Law: Can a Trustee Be Held Personally Liable?
Do You Want to Maximize the Damages You Receive Due to Breach of Fiduciary Penalties? Contact Us Today!
Even when not a crime, a breach of fiduciary duty can have lasting financial and emotional consequences. Acting quickly is key to protecting the trust and maximizing your recovery.
If you suspect a trustee has violated their fiduciary duty:
- Document every instance or pattern of misconduct.
- Avoid direct confrontation with the trustee to prevent evidence issues.
- Contact a California trust litigation attorney immediately to preserve your rights.
At Gokal Law Group, we fight aggressively to recover what’s been taken, and to ensure trustees are held fully accountable under California law. If you suspect a trustee has breached their fiduciary duties, we want to help. Visit our Contact Page to schedule a consultation.
Disclaimer:
The information provided on this website does not, and is not intended to, constitute legal advice. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client relationship between the reader, user, or browser and Gokal Law Group, Inc. All information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.
Readers of this website should contact an attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.