Trustee Breach of Fiduciary Duty
A California trustee owes fiduciary duties to the beneficiaries: to keep them reasonably informed, to account, to administer the trust by its terms, and to put their interests first. Breaching those duties exposes the trustee to removal and to personal liability for what the breach cost.
The duties, and what breaching them costs
A California trustee holds property for someone else and is held to that standard. Probate Code section 16060 imposes an affirmative duty to keep beneficiaries reasonably informed of the trust and its administration — a duty that runs without anyone having to ask. Section 16062 requires an account at least annually, at termination of the trust, and on a change of trustee, to each beneficiary to whom income or principal is currently distributable. Alongside these sit the duties of loyalty, impartiality between beneficiaries, and administration according to the trust’s own terms. Where those duties are breached, section 16440 sets what the trustee owes: any loss or depreciation in the value of the trust estate resulting from the breach with interest, any profit the trustee made through the breach with interest, and any profit that would have accrued to the trust had the breach not caused its loss. A trustee who acted reasonably and in good faith may be excused in the court’s discretion.
Sources: Probate Code s.16060 - Trustee duty to inform and report · Probate Code s.16062 - Duty to account to beneficiaries · Probate Code s.16440 - Measure of liability for breach of trust · Verified 2026-08-03.
What a breach looks like in practice
| Conduct | Duty breached |
|---|---|
| Will not answer questions or produce the trust | Duty to inform (§16060) |
| No accounting, ever | Duty to account (§16062) |
| Lives in trust property without paying rent | Loyalty; impartiality |
| Sells a trust asset to a friend or relative | Loyalty; self-dealing |
| Pays personal expenses from trust funds | Duty to keep property separate |
| Favours one beneficiary over the others | Impartiality |
| Does nothing at all for years | Duty to administer |
Proving it
Breach cases are built from records, not impressions. The accounting shows the movement; bank statements show where it went; the trust instrument shows what was permitted. This is why compelling an accounting is usually the first step even when the real complaint is something else — it converts a suspicion into a document.
Then: surcharge to recover the loss, removal to stop it continuing, the compensation rules when the fee itself is the problem, and §17211 on who pays for the fight.
Need help with legal fees?
We litigate select cases on contingency, with no upfront fees.
Costs are separate from the fee, and whether you are responsible for them is set out in the written agreement before you sign anything.
How contingency fees work in California
A contingency fee means the attorney is paid from what is recovered rather than by the hour, so a beneficiary who cannot fund litigation out of pocket can still bring a claim. California regulates these agreements closely. Under Business and Professions Code section 6147, the agreement must be in writing and the attorney must give the client a duplicate copy, signed by both, when the contract is made. It must state the agreed contingency rate; how disbursements and costs incurred in prosecuting or settling the claim will affect that fee; and to what extent the client could be required to pay for related matters. Unless the matter falls under section 6146, the agreement must also state that the fee is not set by law and is negotiable. These are not formalities: failure to comply with any provision of section 6147 makes the agreement voidable at the client’s option, leaving the attorney entitled only to a reasonable fee.
Sources: Business and Professions Code s.6147 - Contingency fee contracts · Verified 2026-08-03.
Not every matter suits a contingency arrangement, and the firm does not take every case on one. Whether yours qualifies depends on the facts, the likely recovery, and the assets actually available to satisfy a judgment. Ask when you call.
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