When a loved one creates a trust, it is meant to protect their legacy and provide for the people they care about. That protection only works when the trustee acts in good faith and follows the law. If you are a beneficiary and something feels wrong – assets going missing, unreasonable delays in distributions, or a trustee who won’t answer basic questions – California law gives you meaningful tools to investigate and act.
“A trustee’s job isn’t optional,” said Anum Arshad, a Partner at Gokal Law Group. “The moment someone accepts that role, they take on a legal obligation to uphold a high standard of conduct. When they ignore that duty, it causes real financial and emotional harm. You don’t have to tolerate silence, stalling, or secrecy — California law gives you power, and we can help you use it.”
Understanding what trustee misconduct looks like and what you can do about it is the first step in protecting your rightful inheritance. At Gokal Law Group, we help beneficiaries across California recognize the warning signs and take action to hold trustees accountable.
What is Trustee Malfeasance in California?
Trustee malfeasance refers to a trustee’s abuse of authority, intentional misconduct, or failure to uphold fiduciary obligations under California law. The term is sometimes used broadly to cover the full spectrum of trustee wrongdoing – from deliberate self-dealing to negligent mismanagement – though legally, malfeasance refers specifically to intentional wrongful acts, while negligent or careless conduct may be characterized as misfeasance or nonfeasance. Either way, both intentional and negligent breaches can give rise to legal liability and, in serious cases, removal.
Whether the trustee is actively stealing from the trust or simply failing to manage it with reasonable care, the effect on beneficiaries can be the same: a depleted estate, delayed distributions, and a legacy that never reaches the people it was meant to protect.
Related Article: What is Trustee Misconduct?
What Are Common Examples of Trustee Malfeasance?
Under California Probate Law, trustees must act with loyalty, impartiality, prudence, and care. Any breach of these duties could be grounds for legal action. Common examples include:
- Misappropriation of Trust Assets: Using trust assets for personal expenses or commingling trust assets with personal accounts. This is among the most serious breaches a trustee can commit.
- Failure to Distribute Assets: Unreasonably delaying or withholding distributions to beneficiaries without legal justification. While trustees may have some administrative discretion, unexplained delays are a meaningful red flag.
- Failure to Account or Communicate: Under Probate Code § 16060, a trustee has a statutory duty to keep beneficiaries reasonably informed about the trust and its administration. Under § 16062, the trustee must provide formal accountings at least annually, at the termination of the trust, and upon a change of trustee. Refusing to provide records or stonewalling beneficiaries’ legitimate inquiries is not a minor oversight, but can evidence breach of a trustee’s legal obligations under the Probate Code.
- Negligence or Incompetent Management: Under Probate Code § 16047, trustees must invest and manage trust assets in accordance with the prudent investor standard. Poor investment decisions, failure to diversify, or general financial incompetence that causes unnecessary loss to the trust can constitute a breach of this duty, even absent any wrongful intent.
- Self-Dealing and Conflict of Interest: Entering into transactions that personally benefit the trustee at the trust’s expense – whether selling trust property to themselves, favoring their own business interests, or paying themselves excessive compensation – violates the duty of loyalty codified in Probate Code § 16002.
- Poor Investment Decisions: Neglecting the duty to prudently manage trust investments can lead to unnecessary losses.
- Unequal or Improper Treatment of Beneficiaries. Trustees must act impartially and cannot favor one beneficiary over another in violation of the trust’s terms or the duty of impartiality under § 16003.
“One of the most important protections against malfeasance is oversight and ongoing communication with the trustee,” said Arshad. “As a beneficiary, it’s crucial to stay informed about the trust’s activities and how the trustee is managing it. As soon as communication lapses or breaks down, that should be treated as a red flag.”
Related Article: How Do You Prove a Breach of Fiduciary Duty?
Can You Sue for Trustee Malfeasance?
Yes, beneficiaries have the legal right to challenge a trustee who is mismanaging a trust or violating their fiduciary duties. Under Probate Code § 17200, a beneficiary can petition the probate court for a broad range of relief, including :
- Petition for Trustee Removal: Under Probate Code § 15642, a trustee may be removed by the court on its own motion, or on petition of a settlor, co-trustee, or beneficiary. Grounds for removal include breach of trust, insolvency or unfitness to administer the trust, and hostility or lack of cooperation among co-trustees that impairs administration. Additional grounds include the trustee’s failure or refusal to act, excessive compensation, and substantial inability to manage the trust’s financial resources.
- Request a Court-Ordered Accounting: If a trustee refuses to provide the accountings required by §§ 16062 and 16063, a beneficiary can petition the court to compel disclosure.
- Surcharge andDamages: Under Probate Code § 16420, courts may hold a trustee personally liable for losses caused by their breach, compel repayment to the trust, set aside improper transactions, and reduce or deny trustee compensation. Where the trustee’s conduct rises to the level of bad faith or intentional wrongdoing, Probate Code § 859 may support an award of double damages.
Also, timing matters. California law sets specific deadlines for challenging trustee conduct, so it’s important to act quickly if you suspect wrongdoing.
“Most people wait too long to take action because they don’t want to rock the boat,” said Arshad. “But trustee malfeasance doesn’t fix itself. The sooner you get legal help, the better your chances of protecting your inheritance and honoring your loved one’s intent.”
Related Article: Can You Sue a Trustee for Negligence in California?
Defend Your Inheritance from Trustee Malfeasance in California
When a trustee puts their own interests above yours, silence is not an option. We represent beneficiaries in high-stakes trust litigation across California — cases involving fraud, mismanagement, negligence, self-dealing, and other breaches of fiduciary duty. We understand how emotionally charged these situations can be, particularly when family relationships are at stake, and we know how to move quickly when speed matters.
Our compassionate team can protect your inheritance, hold trustees accountable, and make sure your loved one’s wishes are honored. Contact us today for a consultation.
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