Can a Successor Trustee Be Sued?

Can I Be Sued as a Successor Trustee in California?

By Attorney Paul Hanks, Ironclad Living Trusts in California

You have been named as a successor trustee under your parents living trust. You may ask yourself an important question, is it possible to be sued for your acts under a living trust in California? The answer is yes, a successor trustee can be sued for their acts and omissions in the performance of their duties as a trustee. In California, adverse petitions are often filed in court against trustees for a violation of their obligations and duties imposed by law upon all trustees.

To make matters worse, it is unfortunate that many petitions filed against a trustee are initiated by a trust beneficiary who is personally known to the trustee. For example, let’s assume you have been named as the successor trustee under your parents living trust. You are also one of the trust beneficiaries. The other beneficiaries are your siblings, who become dissatisfied with your performance as trustee. Your two siblings as trust beneficiaries can sue you for a breach of your duties under the living trust. In another Blog, this attorney addressed the extensive duties imposed on a successor trustee under a California living trust.

The successor trustee under a California living trust is a position of great importance. The law imposes on all successor trustees a special fiduciary relationship that mandates that the trustee act with the very highest degree of trust, prudence, diligence, extraordinary care, and good faith. The successor trustee must act diligently without undue delay while at the same time adhering to all their responsibilities as the trustee.   The successor trustee must maintain a meticulous and detailed accounting and record of receipts, payments, and transactions that are undertaken. The successor trustee must maintain an inventory of all assets of the estate. All trust accountings and estate inventory must be provided to the trust beneficiaries. The successor trustee must also provide all trust beneficiaries with documents which support the estate inventory and accounting. The successor trustee must keep all beneficiaries regularly updated regarding status of trust administration.

In the event a trustee breaches any of the foregoing responsibilities, as well as any other trustee duties set forth in the California Probate Code, the successor trustee can be held liable for damages in a court of law. It is very important for the successor trustee to be fully aware of their many duties and responsibilities. The successor trustee should not hesitate to consult with experienced estate planning attorneys for assistance with the performance of their duties as trustee. If the successor trustee has failed to do so and has breached their duties as trustee, then the trustee can be sued in a court of law.

Would You Like a Free Consult With an Estate Planning Attorney in California?

If you wish to speak with an experienced estate planning lawyer, please contact us online or call us directly at (951) 587-3737. Ironclad Living Trusts is honored to  serve clients throughout all of Southern California.