How Does a California Trustee Resign from Trust Duties? | Declination vs. Resignation Explained

Being named as a trustee in a California trust comes with significant legal responsibilities. But what if you don’t want to accept the role, or want to step down after starting? In California, a person named as a trustee can either decline the position before serving or resign after taking on trustee duties.

In this article, we’ll explain how a California trustee can resign, the key legal procedures, and the difference between declination and resignation of a trustee.

What Is a Trustee?

A trustee is a person or entity responsible for managing and administering trust property in accordance with the terms of the trust document and California law. Trustees have fiduciary duties to the beneficiaries, including the duties of loyalty, prudence, and impartiality.

Because these duties carry legal and financial risk, a person named as trustee may choose not to accept, or later, resign.

Trustee Declination vs. Trustee Resignation

Action	Declination	Resignation
Timing	Before assuming trustee duties	After acting as trustee
Legal Effect	Never becomes a trustee	Ceases being trustee after proper resignation
Fiduciary Liability	None—never served	Possible liability for actions taken before resignation
Procedure	Informal or written declination	Formal notice required under Probate Code

When Can a Trustee Resign in California?

Under California Probate Code § 15640, a trustee may resign by:

1. Following the resignation procedure outlined in the trust instrument, or

2. If no such procedure is specified, then:

3. 
   

   • Providing written notice to:

     • The person(s) who have the power to remove the trustee,

     • The co-trustees (if any),

     • All qualified beneficiaries, or

   • Obtaining court approval for the resignation.

🔍 Tip: Always check the specific terms of the trust document first—it may specify how resignation should occur.

Step-by-Step: How to Resign as a California Trustee

✅ 1. Review the Trust Document

Read the trust carefully to determine whether it outlines a process for resignation, such as providing notice to a specific person or delivering documents to a successor trustee.

✅ 2. Identify the Successor Trustee

Make sure a successor trustee has been named in the trust or can be appointed. A trustee cannot simply walk away if no one is available to take over.

✅ 3. Provide Proper Written Notice

If the trust doesn’t specify a method, comply with California Probate Code § 15640(b) by delivering written notice to:

• All co-trustees (if any),

• The person or entity empowered to remove the trustee,

• All qualified beneficiaries of the trust.

  
  

✅ 4. Prepare a Formal Resignation Letter

Include:

• Your name and role as trustee

• The trust name and date

• The effective date of resignation

• A statement relinquishing duties

• Signature and date

🔐 Notarization is not legally required but is often recommended for formality.

✅ 5. Transfer Trust Assets and Records

Before resignation is complete, the trustee must:

• Transfer control of all trust accounts and assets to the successor

• Provide accounting records and documentation

• Finalize any ongoing duties or filings

Can a Trustee Resign If There’s No Successor Named?

If the trust does not name a successor trustee and none is willing to serve, the resigning trustee (or any interested party) may need to petition the court under California Probate Code § 17200 to:

• Appoint a new trustee, and/or

• Approve the resignation

⚖️ The trustee cannot simply abandon their post without ensuring continuity of trust administration.

Declining to Serve as Trustee

If you are named as a trustee but have not yet acted in that role (e.g., not opened trust accounts or taken possession of assets), you may simply decline to serve.

While no formal legal process is required, it’s a best practice to:

• Notify the trust creator (if alive) or

• Inform the successor trustee and beneficiaries in writing

✅ This avoids confusion and protects you from unintended liability.

Can a Trustee Be Forced to Remain?

Generally, no—trustees cannot be compelled to remain in office against their will. However:

• Trustees must follow proper resignation procedures

• They must not abandon their duties in a way that causes harm or loss to the trust

• They must ensure proper transition of records and assets

Failure to resign properly can lead to breach of fiduciary duty claims.

Final Thoughts

Resigning as a trustee in California is a legal process that must be handled carefully to protect both the trust and the trustee. Whether you're declining to serve or stepping down after months or years of administration, it's essential to:

• Follow the trust document

• Provide proper notice

• Ensure a smooth handoff to the successor trustee

When in doubt, consult a California estate or trust attorney to avoid missteps and preserve legal protections.

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.