Understanding Your Duties as a Trustee in California

When you accept the role of trustee, you take on a set of fiduciary duties that California law treats with the utmost seriousness. Whether you are a family member stepping into the role after a loved one's passing or a professional fiduciary managing multiple trusts, the obligations are the same — and the consequences of falling short can be severe.

The Duty of Loyalty

At its core, the duty of loyalty requires that you administer the trust solely in the interest of the beneficiaries. This means you cannot engage in self-dealing, cannot use trust assets for personal benefit, and must avoid conflicts of interest. Even well-intentioned actions can run afoul of this duty if they create the appearance of divided loyalty.

The Duty to Inform and Account

California Probate Code Section 16060 requires trustees to keep beneficiaries reasonably informed about the trust and its administration. This includes providing an accounting — a detailed report of all trust transactions — at least annually and upon request. Failure to provide timely accountings is one of the most common grounds for trustee removal petitions in Orange County Probate Court.

The Duty of Prudent Administration

Under the Uniform Prudent Investor Act, adopted in California, trustees must invest and manage trust assets as a prudent investor would, considering the purposes, terms, distribution requirements, and other circumstances of the trust. This is not a static standard — it requires ongoing attention to market conditions, beneficiary needs, and the trust's overall investment strategy.

When to Seek Legal Counsel

The complexity of trustee duties means that even experienced fiduciaries regularly consult with trust administration attorneys. If you are facing a beneficiary dispute, uncertain about a distribution decision, or navigating a trust modification, professional legal guidance is not just advisable — it is part of your duty of prudent administration.