Named as a Trustee in California?

Key Responsibilities, Legal Duties, and Asset Protection Tips

You’ve Been Named a Trustee—Now What?

Being named as a trustee is an honor—but also a legal responsibility with serious implications. Whether you’re managing a trust for a loved one or stepping into the role for the first time, you might be wondering: What exactly am I supposed to do? In California, the law places significant duties on trustees—and failure to fulfill them properly can lead to personal liability, family conflict, or costly court involvement.

What Does a Trustee Do in California?

At its core, a trustee is legally responsible for managing the trust’s assets according to the instructions left by the person who created it (known as the settlor or grantor). This includes:
– Safeguarding and managing trust property
– Keeping accurate records and accounts
– Providing required notices to beneficiaries
– Making distributions in line with the trust’s terms
– Filing taxes and complying with legal reporting obligations

California law views trustees as fiduciaries—meaning you must always act in the best interest of the beneficiaries.

Your Legal and Fiduciary Duties as a Trustee

Under California Probate Code §§ 16000–16015, trustees are held to high legal standards. Key duties include:
– Duty of Loyalty
– Duty of Impartiality
– Duty of Prudence
– Duty to Account
– Duty of Segregation

Common Mistakes Trustees Make—and How to Avoid Them

Common and avoidable trustee mistakes:
– Failing to take immediate control of trust assets
– Mixing personal and trust funds
– Delaying communication with beneficiaries
– Ignoring distribution restrictions
– Poor recordkeeping and tax filing

These errors can lead to unnecessary taxes, litigation, and damaged family relationships.

How to Protect Trust Assets and Reduce Liability

Steps to safeguard the trust and your personal liability:
– Open a dedicated trust bank account
– Maintain detailed records
– Work with a CPA
– Ensure trust real estate has insurance
– Seek legal guidance before making major moves

When to Call an Attorney

Get legal help if:
– Trust language is unclear
– There’s pressure from beneficiaries
– Real estate is involved
– The trust may be outdated or unfunded
– Conflict seems likely

Conclusion: You Don’t Have to Navigate This Alone

Being a trustee is a serious responsibility, but you don’t have to do it alone. Legal guidance helps ensure compliance, reduce risk, and protect your loved one’s legacy.

Ready to take the next step?
Book a consultation today to get the advocate and clarity you need to administer the trust confidently and correctly, while protecting yourself and the beneficiaries you serve.