When a loved one passes away, the trust they left behind is meant to protect their legacy and provide for the people they cared about most. But what happens when the trustee doesn’t follow the trust? If you’re a beneficiary facing this situation – watching assets sit undistributed, receiving no accounting, or getting stonewalled when you ask questions – you are not powerless. California law gives you concrete tools to hold trustees accountable and protect your inheritance.
“When a trustee ignores the terms of a trust, it can feel like far more than a legal violation,” said Anum Arshad, a Partner at Gokal Law Group. “These are someone’s final wishes. As a beneficiary, you don’t have to stand by and watch your inheritance be mismanaged, squandered, or stolen. You have rights, the law is on your side, and an attorney can help you enforce both.”
Does a Trustee Have to Follow the Trust?
Yes. Under Probate Code § 16000, on acceptance of the trust, a trustee has a duty to administer the trust according to the trust instrument and, except to the extent the trust instrument provides otherwise, according to the Probate Code. This is not discretionary. The trustee must follow the written document. They cannot substitute their own judgment for the settlor’s instructions, honor informal side agreements, or reinterpret distribution terms to suit their preferences.
That duty encompasses a range of specific obligations, including:
- Distributing assets to beneficiaries according to the trust’s instructions
- Providing accurate, timely accountings (Prob. Code §§ 16062–16063)
- Managing trust property prudently and in accordance with the prudent investor standard, without self-dealing (§ 16047)
- Keeping beneficiaries reasonably informed about significant trust activities (§ 16060)
- Avoiding conflicts of interest and acting impartially among beneficiaries (§§ 16002, 16003)
Trustees who fail to meet these obligations may be removed by the court and held personally liable for resulting harm.
What Happens When a Trustee Doesn’t Follow the Trust?
A trustee’s failure to follow the trust’s terms is a breach of fiduciary duty, and it can have serious consequences for the trust, for you as a beneficiary, and for the trustee personally.
Loss of beneficiary rights. Delays or mismanagement can deprive beneficiaries of assets, income, or information they are legally entitled to receive.
Financial harm to the trust. Poor decisions or willful inaction can cause the trust to lose value, reducing what beneficiaries ultimately receive.
Legal liability for the trustee. Under Probate Code § 16420, if a trustee commits or threatens a breach of trust, a beneficiary or co-trustee may commence a proceeding to compel the trustee to perform their duties, enjoin them from further breach, compel redress by payment of money, appoint a receiver or temporary trustee, remove the trustee, set aside the trustee’s acts, reduce or deny trustee compensation, impose an equitable lien or constructive trust on trust property, or trace and recover wrongfully disposed trust property. Where the trustee’s conduct rises to bad faith, § 859 may support an award of double damages.
The sooner you act, the better positioned you are to prevent further harm and recover what was lost.
Related Article: How Do You Prove a Breach of Fiduciary Duty?
What Happens When a Trustee Violates the Trust?
When a trustee’s failure to follow the trust crosses into active misconduct — misappropriating funds, refusing distributions, favoring one beneficiary over others, or ignoring specific instructions from the settlor — it becomes a breach of fiduciary duty and grounds for legal action. Common violations include:
- Paying themselves excessive or unauthorized compensation
- Making investments inconsistent with the trust’s purpose or the prudent investor standard
- Refusing to provide the accountings required by § 16062
- Commingling trust assets with personal funds
- Selling trust property to themselves or related parties at below-market value
California courts take these breaches seriously. If a breach is proven, the court can remove the trustee under § 15642, surcharge them personally for losses under § 16420, deny their compensation, and — in egregious cases — refer the matter for further action under § 859.
Related Article: A Trust Attorney’s Guide: The Penalty for Breaching Fiduciary Duty
What to Do if a Trustee Does Not Follow the Trust?
If you suspect a trustee is not following the trust, it’s important to act quickly. Here is what to do if a trustee does not follow the trust:
- Request Information in Writing: Start by formally asking for accountings, trust documents, and explanations of the trustee’s actions. This accounting will provide a clear picture of how assets have been managed, spent, and distributed. If the trustee refuses, you can petition the court to compel them. If they produce an accounting that appears incomplete or manipulated, that can be challenged as well.
- Document Everything: Keep records of all communications with the trustee, note when requests go unanswered, and preserve any documents that reflect how trust assets have been managed. A clear, dated paper trail is often the foundation of a successful case if the matter escalates to trust litigation.
- Consult a Trust Litigation Attorney: An experienced attorney can review the trust, assess the trustee’s actions, and help you determine whether a breach has occurred and the most effective path forward – whether that’s a demand letter, a petition to compel accounting, or full litigation.
- File a Petition with the Court: If the trustee refuses to comply, you can petition the probate court to enforce the trust, compel distributions, or remove the trustee. This is often the most direct way to stop ongoing harm and force accountability.
“If you’re feeling dismissed, shut out, or taken advantage of by a trustee, understand that you are not overreacting,” said Arshad. “These are the warning signs. The sooner you act, the better your chance of protecting your rightful share and honoring your loved one’s intent.”
Related Article: An Expert Guide to the Rights of Trust Beneficiaries
Contact Gokal Law Group.
When a trustee isn’t doing their job, you don’t have to tolerate it. We represent beneficiaries in complex trust disputes across California — cases involving mismanagement, self-dealing, refusal to distribute, and other breaches of fiduciary duty. Contact us for a consultation to enforce your rights, protect your inheritance, and hold a negligent trustee accountable. Contact us for a free consultation to enforce your rights, protect your inheritance, and hold a negligent accountable.
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