Trusts are a favored tool in estate planning, offering flexibility and privacy that traditional wills often lack. However, as their use has grown, so has the potential for disputes. Disputes may arise when trustees, who have a duty to manage the trust’s assets in accordance with the terms of the trust instrument, act in bad faith. When trustees mismanage assets, fail to provide required accountings, ignore trust instructions, dismiss beneficiary concerns, or delay distributions to beneficiaries, they may be breaching their fiduciary duty. This post will explore what constitutes trustee misconduct and what actions beneficiaries can take in response.
What is Trustee Misconduct?
Trustees have a fiduciary duty to manage trust assets responsibly and properly for the benefit of the beneficiaries. When trustees fail to perform as per the trust instrument and relevant California Probate Code, they have breached their fiduciary duty.
If you are a trust beneficiary, you may wish to seek legal counsel if a trustee is:
- Neglecting Trustee Responsibilities: Trustees who fail to fulfill essential duties outlined in the trust instrument may be neglecting their responsibilities under California Probate Code Section 16000. Examples include improperly managing assets, neglecting any property maintenance, failing to make distributions, or failing to adhere to trust terms.
- Failing to Provide Beneficiaries with an Accounting: Beneficiaries have the right to receive a formal accounting of trust assets and transactions. Under California Probate Code Sections 16062-16063, a trustee must provide this accounting within sixty (60) days of a formal request.
How Can an Attorney Help?
An attorney experienced in trust and probate litigation disputes may be able to assist in correspondence with trustee(s) or beneficiaries to ensure compliance with relevant California Probate Code. This correspondence can include formal requests for copies of trust documents and accounting of the estate’s assets, income, and expenses.
Furthermore, attorneys may be able to assist with the drafting and filing of a Petition for Breach of Fiduciary Duty with the California Superior Court. This petition may request that the court remove a trustee due to the alleged breach. Once a petition is filed, the parties may engage in the discovery process to inquire about relevant facts and documents related to the dispute.
Trustees and beneficiaries who are concerned about trust and probate litigation disputes may face various statutes of limitations that can impact their ability to litigate a claim. Do not hesitate to contact our office for a free consultation. Learn more about Webb Law Group’s experience with trust litigation here.
Looking Ahead
A trustee’s job is to manage the trust property and assets responsibly and in accordance with the terms of the trust. If trustees do not meet these obligations, beneficiaries have legal options to protect their interests.
To address your litigation related concerns, feel free to reach out to our team today. You may call or text directly to (559) 431-4888 or (619) 399-7700 or send a message via email to Advice@WebbLawGroup.com.