Co-Trustee Problems in California: Common Disputes and How to Resolve Them

Naming co-trustees—often siblings or adult children—is a popular estate planning strategy meant to foster collaboration and shared responsibility. But in reality, co-trustee arrangements often lead to conflict when personalities clash, communication breaks down, or trust duties are misunderstood.

At Moravec, Varga & Mooney, we routinely help trustees and beneficiaries resolve disputes between co-trustees and restore proper trust administration. In this post, we’ll explain common co-trustee problems in California and how to resolve them effectively.

What Is a Co-Trustee?

A co-trustee is one of two or more people named to administer a trust together. Co-trustees have:

• Equal authority to manage trust assets

• A fiduciary duty to act in the best interest of the beneficiaries

• A legal obligation to collaborate and communicate

Unless the trust document states otherwise, co-trustees must act unanimously when making decisions under California law.

Common Co-Trustee Disputes

Even with good intentions, conflicts can arise when co-trustees disagree on how to manage the trust. Some of the most frequent problems include:

1. Disagreements Over Distributions

One trustee may want to distribute assets quickly, while the other prefers to delay or withhold funds—especially if there are concerns about a beneficiary’s financial habits.

2. Lack of Communication

Trustees may operate independently or fail to consult one another before making decisions, violating their duty to cooperate.

3. Accusations of Mismanagement

One trustee may accuse the other of:

• Mishandling investments

• Favoring certain beneficiaries

• Using trust assets for personal gain

4. Conflicts of Interest

If a trustee is also a beneficiary, tensions may rise over perceived bias or self-dealing.

5. Deadlock

When co-trustees are evenly split and cannot reach a consensus, trust administration stalls—harming beneficiaries and risking legal liability.

Legal Duties of Co-Trustees in California

Under the California Probate Code, co-trustees must:

• Act together unless the trust says otherwise (Probate Code § 16013)

• Keep each other informed about trust matters

• Consult and cooperate in decision-making

• Avoid conflicts of interest and self-dealing

Failure to meet these duties can result in court intervention, trustee removal, or liability for damages.

How to Resolve Co-Trustee Disputes

✅ 1. Review the Trust Document

Some trusts allow co-trustees to act independently, appoint a lead trustee, or break ties through majority vote. Always start by reviewing the terms of the trust itself.

✅ 2. Mediation or Legal Negotiation

If communication is strained, a neutral third-party mediator or attorney can help facilitate resolutions without court involvement.

✅ 3. Petition for Instructions

Under Probate Code § 17200, a co-trustee may petition the probate court for instructions when:

• The trust is ambiguous

• Co-trustees cannot agree

• A legal decision is required

✅ 4. Removal of a Co-Trustee

In severe cases, one co-trustee can ask the court to remove the other based on:

• Misconduct

• Incapacity

• Failure to perform duties

Removal must be supported by clear evidence and is decided by the court based on the best interests of the trust and its beneficiaries.

Best Practices for Co-Trustees

To avoid disputes from the outset:

• Communicate regularly and document decisions

• Divide responsibilities clearly (e.g., one handles finances, the other handles communication)

• Work with a trust attorney or CPA for neutral guidance

• Set boundaries between personal and fiduciary roles

Being a co-trustee requires time, diligence, and the ability to collaborate—even when disagreements arise.

Final Thoughts

While co-trusteeships are common in California estate plans, they can quickly become problematic without clear communication and legal guidance. Understanding your rights and responsibilities as a co-trustee—and knowing when to seek help—can protect the trust and everyone involved.

Facing Co-Trustee Conflict?

At Moravec, Varga & Mooney, we represent trustees and beneficiaries in all types of trust disputes, including co-trustee disagreements. Whether you need strategic advice, mediation, or court intervention, we’re here to help you navigate your fiduciary duties with confidence.

📞 Contact us today to schedule a consultation and protect the integrity of your trust administration.

Contact the top-rated California trust and probate attorneys Moravec, Varga & Mooney today to schedule a telephonic consultation. Have questions? call (626) 460-1763 or email LV@MoravecsLaw.com.

Southern California Probate Lawyer Serving all counties in California, including Los Angeles, Riverside, San Bernardino, Sacramento, Santa Cruz & Beyond.