In California trust and estate litigation, the choice of successor trustee can matter as much as the size of the estate. The trustee may control the timing of distributions, decide whether to sell or hold property, hire professionals, and answer questions from beneficiaries. When that person is careful, neutral, and organized, administration can move forward. When they are biased, overwhelmed, or secretive, the trust administration often turns into a lawsuit.
Most settlors start by naming a spouse, an adult child or children, or a sibling as successor trustee. The person is known and trusted, and it seems like a way to avoid paying a bank or professional fiduciary. Yet many of the most serious disputes we see at Trust Law Partners grow out of that choice. The family trustee falls behind on accountings, favors one branch of the family, or treats trust assets as if they were their own. Eventually, beneficiaries ask whether a neutral professional trustee would be better.
This blog explains why those conflicts arise, how California courts compare family trustees and professional trustees, and what beneficiaries should expect if they ask the probate court to change who is in charge.
What A Successor Trustee Is Required To Do
Once the settlor dies or becomes permanently incapacitated and the trust becomes irrevocable, the successor trustee steps into a formal legal role. Under the California Probate Code, the trustee is a fiduciary. That means they must follow the written terms of the trust in good faith, put the interests of all beneficiaries ahead of personal interests, keep trust property separate from their own, manage and invest prudently, pay valid debts and taxes, provide information and accountings upon request, and make distributions within a reasonable time.
The trustee does not represent one side of the family. The duty of loyalty runs to all beneficiaries. When a trustee forgets that, or starts acting as if they own the estate, the risk of litigation rises quickly.
Why Families Pick Relatives As Successor Trustees
Clients usually pick relatives for understandable reasons. A spouse or child knows the family story, has seen how the settlor handled money, and may already help with bills or tax filings. Clients also tend to believe that a family trustee will cost less than a professional.
That approach can work when the estate is simple and relationships are stable. If there is one house, a few investment accounts, and cooperative siblings, a capable family trustee may complete the administration with limited controversy.
The problems appear when the structure is more complex. Second marriages, children from different relationships, rental properties, family businesses, and old rivalries create pressure a family trustee may not be ready for. They suddenly face tax deadlines, sale decisions, and competing demands from relatives who are grieving, suspicious, or both. A job that sounded like a formality becomes a second career.
Where Family Trustees Often Go Wrong
Most family trustees do not intend to cause harm. They get in trouble because they underestimate the workload and try to improvise. Common patterns include long gaps in communication, using trust funds for “reimbursement” or “temporary loans” without documentation, living in a trust-owned home without paying market rent, refusing to provide a complete accounting, or selling property to insiders on favorable terms without clear justification.
Each of these examples raises questions about loyalty, impartiality, or basic competence. When beneficiaries see these situations arise, they start to ask whether a neutral professional might protect the estate better.
What Professional Trustees Bring To The Role
Professional trustees include licensed private fiduciaries, trust companies, and bank trust departments. They charge fees, but they also bring structure and experience that most family members do not have.
A good professional trustee will open proper trust accounts, marshal assets, hire accountants and appraisers where needed, keep detailed records, and send regular written reports to all beneficiaries. Because they are not part of the family, they are less tempted to favor one branch over another. They also understand that poor record keeping or self-dealing can lead to removal and personal liability.
The tradeoff is cost and sentiment. A professional trustee will be paid for their time, and they may have little interest in keeping a nonproductive asset simply because it has emotional value. For small estates with cooperative heirs, those costs may not make sense. In high value or high conflict estates, the cost of a neutral trustee is often far less than the legal fees that flow from a struggling family trustee.
How These Disputes Get To The Probate Court
Successor trustee disputes commonly reach the probate court in two main ways.
First, a family member may already be serving, and the beneficiaries may file a petition to remove that trustee and appoint someone else. Under Probate Code section 15642, a court may remove a trustee for breach of trust, persistent failure to act, unfitness, or hostility that impairs administration. The petition usually points to missed accountings, unexplained transactions, or obvious bias.
Second, the named trustee may have died, resigned, or refused to act. If the document does not clearly identify the next person, or if that person is clearly unqualified, competing petitions may follow. One group of beneficiaries may want a sibling to take over. Another group may ask for a professional fiduciary. The court must weigh the settlor’s written wishes against the practical needs of the estate.
How Judges Compare Family and Professional Trustees
California judges start with the trust language. If the settlor clearly expressed a preference for a particular person or type of trustee, that preference carries real weight. Courts do not ignore written intent. At the same time, the court’s duty is to protect beneficiaries and preserve trust assets. A named trustee who is not performing can be removed.
When deciding whether to keep a family trustee or appoint a professional, courts commonly consider the size and complexity of the estate, the level of hostility among beneficiaries, the current trustee’s track record on record keeping and communication, and any evidence of self-dealing, missed taxes, or poor investment choices. Judges also look at the likely cost of a professional trustee compared to the cost of further litigation.
If the estate is modest and siblings cooperate, a family trustee may be a sensible choice. If there are multiple properties, business interests, blended families, and a history of conflict, a neutral fiduciary is often safer.
What Beneficiaries Should Expect in a Contested Trustee Case
Once a petition is filed, the process becomes formal. Allegations must be supported with documents and testimony, not just frustration. Beneficiaries should expect written pleadings, supporting declarations, at least one court hearing, and the possibility of an evidentiary hearing where the trustee and other witnesses testify.
Judges focus on the money trail and the paper trail. Complaints that a trustee is difficult carry little weight unless they connect to real harm. Proof that the trustee ignored repeated requests for an accounting, used trust funds for personal expenses, or sold assets cheaply to relatives is much more persuasive.
The pressure created by the legal process often leads to settlement. Many family trustees decide to resign rather than risk a public finding of breach and a personal surcharge. In those resolutions, the parties typically agree on a professional successor trustee and basic rules for how administration will proceed, including deadlines for sales and distributions.
Planning Lessons for People Creating Trusts Now
For clients who are still designing their estate plans, these disputes are a reminder that the trustee choice is not a formality. Instead of automatically naming the oldest child, it is worth asking who has the time, temperament, and financial skills to handle the job. In some cases, it makes sense to name a professional trustee from the start, especially for large or complex estates. In other cases, clients name a family trustee but include language allowing beneficiaries to replace that person with a neutral fiduciary if clear problems arise.
Careful planning cannot prevent every conflict. It can, however, give beneficiaries and courts a clearer path to a safe result if the first trustee does not work out.
How Trust Law Partners Can Help
Successor trustee disputes are often about control, information, and the safety of assets that the settlor worked a lifetime to build. At Trust Law Partners, LLP, we represent beneficiaries and other interested parties in serious California trust and estate litigation, including cases where the central question is whether a family member or a professional trustee should serve.
We focus on the evidence that matters in court: the trust language, the administration history, the accountings, and the real impact on distributions. Whether you are seeking to remove an unfit family trustee or deciding how to respond to a demand for a professional trustee, early strategic advice can make a meaningful difference in the outcome.
Call Trust Law Partners today for a free consultation at 833-982-2079.