Trustees Have Important Responsibilities

After the creator of a trust dies, the successor trustee is generally responsible for administering the trust and carrying out its terms.

In some situations, however, a trustee may refuse to act, become unresponsive, or simply fail to perform the duties required by the trust.

When that happens, beneficiaries are often left wondering what options are available.

What Does It Mean for a Trustee to Refuse to Act?

A trustee may be refusing to act if he or she:

• ignores requests for information;

• fails to begin trust administration;

• refuses to communicate with beneficiaries;

• does not distribute trust assets when appropriate;

• or takes no meaningful action to administer the trust.

Not every delay is improper, but extended inaction can create significant problems for beneficiaries and trust administration.

Trustees Have Fiduciary Duties

California trustees generally owe fiduciary duties to trust beneficiaries.

These duties may include:

• following the terms of the trust;

• protecting trust assets;

• keeping beneficiaries reasonably informed;

• maintaining records;

• and administering the trust in a timely manner.

A trustee who simply ignores these responsibilities may be violating fiduciary obligations.

Why Might a Trustee Refuse to Act?

There are many reasons a trustee may fail to act.

For example:

• the trustee may feel overwhelmed by the responsibility;

• the trustee may not understand the legal requirements;

• the trustee may be dealing with personal issues;

• or the trustee may be attempting to avoid conflict among beneficiaries.

In some cases, a trustee may simply be unwilling to serve.

Can a Trustee Decline the Appointment?

Yes.

In most situations, a person nominated as trustee is not required to serve.

If a trustee does not wish to act, the trustee may often decline the appointment.

The trust document typically identifies successor trustees who can serve if the first choice is unable or unwilling to do so.

What Can Beneficiaries Do?

The appropriate response depends on the circumstances.

Beneficiaries may begin by:

• requesting information from the trustee;

• asking whether the trustee intends to serve;

• reviewing the trust document;

• and determining whether another successor trustee is available.

In some situations, communication alone may resolve the issue.

Can a Court Remove a Trustee?

Under certain circumstances, a California court may remove a trustee.

Possible grounds may include:

• failure to administer the trust;

• breach of fiduciary duty;

• prolonged inaction;

• incapacity;

• or conduct that harms the trust or beneficiaries.

Whether removal is appropriate depends on the specific facts involved.

What Happens After a Trustee Is Removed?

If a trustee is removed or declines to serve, the trust document may identify another individual to act as successor trustee.

If no successor trustee is available, a court may appoint a replacement trustee.

The goal is generally to ensure that trust administration can continue and that the trust is properly managed.

Understanding Your Options

Trust administration often requires active management and communication.

When a trustee refuses to act, beneficiaries may have options to protect trust assets and move administration forward.

Understanding the trustee’s responsibilities and the available remedies can help families address administration problems more effectively.