What Happens If a Trustee Refuses to Act?

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.

For families in San Jose, Santa Clara County, and throughout Silicon Valley, trust administration often depends on the trustee taking prompt action after a death.

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.

For a broader overview of the administration process, see Trust Administration After Death.

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.

For more information regarding fiduciary responsibilities, see What Are a Trustee’s Duties in California?

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.

Problems sometimes arise when the trust contains real estate, financial accounts, or assets that were never properly transferred into the trust before death. For additional information, see Why Funding Your Trust Is Just as Important as Signing It.

Trust Funding Problems Can Complicate Administration

A trustee’s refusal to act is not always the only issue facing a family.

Sometimes beneficiaries discover that:

• real estate was never transferred into the trust;

• financial accounts remain outside the trust; or

• title paperwork was never completed.

When this happens, additional legal proceedings may be necessary.

For more information, see Heggstad Petitions Explained: Fixing Trust Funding Problems in California

If the trust owns real property, trustees may also be responsible for maintaining or selling the property during administration. See Can I Transfer My Home Into a Revocable Living Trust?

Understanding Your Options

Trust administration often requires active management, communication, and attention to legal obligations.

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.

For a broader understanding of how trusts fit into an estate plan, see Do I Need a Trust or a Will in California?

Trustees and beneficiaries may also find these articles helpful:

• Trust Administration After Death

• What Are a Trustee’s Duties in California?

• Why Funding Your Trust Is Just as Important as Signing It

• Heggstad Petitions Explained: Fixing Trust Funding Problems in California

• Can I Transfer My Home Into a Revocable Living Trust?

• Do I Need a Trust or a Will in California?

About the Author

Adam T. Evan is a California estate planning attorney serving individuals and families throughout San Jose, Santa Clara County, and Silicon Valley. His practice focuses on estate planning, probate, trust administration, and guardianships. He helps clients create practical estate plans, guide families through probate proceedings, and assist trustees with trust administration after the death of a loved one.

To schedule a consultation, contact the Law Office of Adam T. Evan at (408) 515-9005.