Trustees are put in charge of administering trusts. Their obligations can include managing, investing, and distributing trust assets. They are expected to follow the instructions of the trust creator or grantor and to act in the best interests of the beneficiaries. In fact, they have a fiduciary duty to put beneficiaries first, which is the highest duty owed under the law.
In California, part of fulfilling this fiduciary duty is remaining impartial. If a trustee violates this obligation, their failure could give rise to litigation.
The Los Angeles abuse of trust beneficiary attorneys at Albertson & Davidson, LLP can help in these situations. We’ll work with you to understand a trustee’s duty of impartiality, to determine if the trustee has violated their obligations, and to pursue appropriate remedies.
To find out more about the help we can offer, give us a call today at (858) 209-2309 to schedule a consultation. You can also read on to learn more about a trustee’s duty of impartiality and what your options are if this duty isn’t fulfilled.
What is a trustee’s duty of impartiality?
California Probate Code §16003 states clearly, “If a trust has two or more beneficiaries, the trustee has a duty to deal impartially with them and shall act impartially in investing and managing the trust property, taking into account any differing interests of the beneficiaries.”
This means that the trustee must:
- Balance the competing interests of all beneficiaries
- Avoid favoring one beneficiary or class of beneficiaries unless the trust provides explicit instructions to do so
- Provide equal opportunities for beneficiaries to use trust assets and, in situations where distributions of trust assets differ, have a rationale for distributions that is fair and impartial
- Not take sides in disputes between beneficiaries
- Ensure all beneficiaries have equal access to important information about the trust
The duty of impartiality does not guarantee that trustees are treated exactly equally in all things. They must be treated equitably, in accordance with the purpose of the trust and their own independent needs.
What happens if the duty of impartiality is violated?
In some circumstances, a trustee fails to remain impartial. This could happen, for example, if they are influenced by one beneficiary to prioritize their interests, or if they reduce distributions of trust assets to current beneficiaries to prioritize future investments when the trust creator didn’t explicitly say to do so.
When the duty of impartiality is violated, beneficiaries can take legal action for breach of fiduciary duty. This could result in the trustee:
- Being ordered to correct the issue
- Being held financially liable for losses and required to pay damages
- Being removed from their role
The trust contest lawyers in Los Angeles at Albertson & Davidson, LLP can help you decide whether to take legal action if you’re involved with a trust and believe the trustee failed to live up to this obligation or any of their other legal duties. We can work with you to identify the failure and pursue a resolution through mediation, settlement negotiations, or litigation.
How can a trust litigation lawyer help?
Albertson & Davidson, LLP has extensive experience with trust litigation, and we can put that knowledge to work for you. We know California’s laws on how trusts are supposed to be administered, and we will fight to protect your inheritance and legacy when trustees don’t do what they should
Give us a call today or contact us online to schedule a consultation with a trust litigation lawyer to learn more about the support and advocacy we can offer.