What Types of Lawsuits Can You File Against a Trustee in California?

The Quick Answer: You Can Sue a Trustee for Breach of Fiduciary Duty, Mismanagement, Self-Dealing, Failure to Account, or Improper Distributions

Trustees in California have strict legal duties under the Probate Code. When a trustee violates these duties—either intentionally or through neglect—beneficiaries can file a lawsuit in probate court to remove the trustee, recover damages, or compel compliance.

The most common legal actions include:

• Petitions for breach of fiduciary duty

• Petitions to compel accountings

• Actions to surcharge the trustee for losses

• Petitions for removal or suspension of the trustee

• Claims involving fraud, self-dealing, or elder financial abuse

At Moravec, Varga & Mooney, we represent trust beneficiaries across California who are concerned that a trustee is acting improperly or unlawfully.

1. Breach of Fiduciary Duty

Trustees owe beneficiaries the highest duty of loyalty, care, and impartiality. A breach occurs when the trustee:

• Misuses trust assets

• Favors one beneficiary over another

• Makes poor investment choices

• Fails to distribute assets in a timely manner

• Ignores the terms of the trust document

You can file a petition under Probate Code §17200 to hold the trustee accountable.

2. Failure to Account

Trustees must provide a formal trust accounting at least once a year, or when requested by beneficiaries. Failure to do so can justify a petition to compel an accounting.

Common issues include:

• Vague or missing financial records

• Refusal to respond to requests for information

• Concealment of trust transactions

3. Surcharge Actions

If a trustee’s actions result in financial harm to the trust, beneficiaries can ask the court to impose a surcharge—a personal judgment against the trustee for the loss.

Examples include:

• Selling trust property below market value

• Making unauthorized loans or gifts

• Paying excessive trustee fees

Surcharges are a powerful remedy and often accompany other claims for breach of duty.

4. Trustee Removal or Suspension

You may petition the court to remove or suspend a trustee under Probate Code §15642 if the trustee:

• Violates the trust terms

• Commits fraud or theft

• Becomes incapacitated

• Fails to act impartially

• Causes conflict that harms trust administration

Courts often suspend a trustee temporarily while litigation is pending to prevent further harm.

5. Fraud, Self-Dealing, or Elder Financial Abuse

You can also file civil claims against a trustee who:

• Transfers assets to themselves

• Hides trust assets from other beneficiaries

• Abuses an elderly settlor or co-trustee

• Forged documents or made misrepresentations

California's Elder Abuse Act (Welfare & Institutions Code §15610.30) may apply if the victim is over 65.

What You Can Request in a Trustee Lawsuit

Depending on the circumstances, your petition may request:

• Removal or suspension of the trustee

• Court-ordered trust accounting

• Restitution or surcharge

• Return of stolen or misappropriated assets

• Appointment of a temporary or successor trustee

• An injunction to prevent further harm

Get Legal Help to Protect Your Inheritance

If you believe a trustee has violated their duties or harmed your rights as a beneficiary, don’t wait. These matters are complex, and timing is critical. At Moravec, Varga & Mooney, we help beneficiaries across California take action to protect trust assets and enforce their legal rights.

📞 Schedule a consultation today to discuss your trustee dispute in confidence.