When a trustee manages a loved one’s estate, you expect that person to protect the assets and follow the wishes set out in the trust. If you notice missing records, delayed distributions or declining trust property values without a clear reason, you may begin to question whether the trustee is meeting those responsibilities.
California law requires trustees to manage a trust with care and act in the best interests of the beneficiaries. Not every mistake amounts to negligence, but certain actions may lead to disputes when they do not meet a trustee’s legal duties.
Warning signs of trustee negligence
Certain actions may raise concerns about how a trustee is handling the trust. Depending on the circumstances, the following conduct may raise concerns about whether a trustee failed to meet their duties:
- Keeping incomplete financial records or failing to provide required accountings
- Allowing trust property to lose value by neglecting real estate, investments or other assets
- Missing tax deadlines, failing to pay trust expenses or delaying distributions without a valid reason
- Ignoring the instructions contained in the trust document
- Failing to communicate with beneficiaries or properly oversee professionals hired to assist with the trust
Courts look at the trustee’s overall actions rather than one isolated mistake. A single error may not amount to negligence if the trustee otherwise handled the trust with reasonable care.
How courts review trustee decisions
California law requires trustees to act loyally, manage trust property carefully and treat beneficiaries fairly. These duties apply throughout the life of the trust.
When a dispute reaches court, the judge will review the trustee’s decisions based on the trust’s terms and the situation surrounding the administration of the trust. The court may consider whether the trustee kept accurate records, protected trust assets and carried out required duties. The review will depend on the trustee’s actions and the effect those actions had on the trust.
Why trust disputes require careful review
Trust disputes can involve more than one disagreement between a trustee and a beneficiary. Concerns may involve missing records, questions about asset management or disagreements over whether the trustee followed the trust document.
Because trusts can involve valuable assets and family relationships, these disputes can become difficult to resolve. The court will consider the details of how the trustee managed the trust when reviewing the dispute.