Who can sue for breach of trust?

Asked by: Rhett Hackett DVM  |  Last update: October 3, 2025
Score: 4.8/5 (11 votes)

Trust beneficiaries can bring a claim against the trustee, so long as they have a valid reason. Valid reasons for trust beneficiaries suing a trustee include: The trustee misused or misappropriated trust assets for personal gain (e.g., trustee sold trust property and kept the proceeds from the sale).

Who is liable for breach of trust?

Where the trustee commits a breach of trust, he is liable to make good the loss which the trust-property or the beneficiary has thereby sustained, unless the beneficiary has by fraud induced the trustee to commit the breach, or the beneficiary, being competent to contract, has himself, without coercion or undue ...

How hard is it to sue a trust?

Generally, no you cannot sue a trust directly. Again, that's because a trust is a legal entity, not a person. It's possible, however, to sue the trustee of a trust whether that trust is revocable or irrevocable. As mentioned, in the case of a creditor lawsuit the trustee of a revocable living trust could be sued.

What happens if there is a breach of trust?

This commonly entails a trustee using money held in trust for their benefit. Breach of trust is a serious criminal offence and is known as a straight indictable offence, which frequently results in jail time upon conviction.

How do you prove a breach of trust?

How Do You Prove a Breach of Fiduciary Duty?
  1. Withheld pertinent information.
  2. Misappropriated trust funds.
  3. Committed self-dealing.
  4. Abused their position.
  5. Failed to avoid a conflict of interest.
  6. Failed to keep beneficiaries informed.

Who Can Sue a Trustee? | RMO Lawyers

33 related questions found

Can you sue someone for breach of trust?

Who Can Sue for Breach of Trust? California Probate Code §16420 states that any beneficiary or co-trustee can file a petition alleging breach of trust in the probate court.

What is the burden of proof for breach of trust?

Burden of Proof

This means that the petitioner must provide sufficient evidence to support their claims. However, in cases of alleged fraud or undue influence, the burden of proof may shift to the trustee or the party defending the trust.

Can you go to jail for breach of trust?

Under California law, stealing trust assets with a value of $950 or less is a misdemeanor with a maximum jail sentence of 6 months.

What can be done if trust is violated?

  1. 1 Acknowledge the breach. The first step to rebuilding trust is to acknowledge that you have violated it and take responsibility for your actions. ...
  2. 2 Listen and empathize. ...
  3. 3 Make amends and change. ...
  4. 4 Rebuild communication and intimacy. ...
  5. 5 Seek help if needed. ...
  6. 6 Be patient and hopeful. ...
  7. 7 Here's what else to consider.

What is a serious breach of trust?

The Court rejected that invitation, however, and relied on the comments to the Uniform Trust Code to find that a “serious breach of trust” may consist of “a single act that causes significant harm or involves flagrant misconduct” or “a series of smaller breaches, none of which individually justify removal when ...

How much does it cost to fight a trust?

Depending on the complexity of the case, it may cost anywhere from a few thousand dollars to $100,000 or more to dispute the terms of a trust.

Who wins in trust?

Brian won $78,600 and Julie received $63,600. Jake and Gaspare, who did not accept any offers, walked away with $48,600. In the final moments of the episode, the group toasted each other and made plans to visit Brian in Texas.

Can a trust be liable?

Unlike a company, a trust is not a separate legal entity, although it is treated as a separate entity when it comes to registering for tax. That means the trustee is liable for any of the trust's debts, which is why many people choose to have a company as trustee.

Can beneficiaries sue a trustee?

Whether a particular individual has standing to sue a trustee for a certain reason may vary by jurisdiction, but beneficiaries almost always have standing to sue. A large part of a trustee's responsibility is prudently investing the trust funds. Most state laws contain prudent investment standards for trustees.

Is breach of trust a financial crime?

There are a multitude of different types of financial crimes, like embezzlement, breach of trust, financial transaction card fraud and theft, and forgery. Anyone can commit these types of crimes. A breach of trust requires a reasonable degree of authority over someone else's finances to execute.

How do you fix a breach of trust?

Rebuilding trust in relationships requires us to be vulnerable and courageous. We have to acknowledge we did something wrong, apologize for our behavior, and act in ways that repair the damage we caused. However, the net result can be even stronger levels of trust.

Can you sue for breach of trust?

Under California Probate Code section 16460, a beneficiary has three years from the time they first knew (or should have known) about the breach of trust to sue the trustee. Be aware that this deadline may be shortened to 180 days if the trustee provides an accounting that sets forth this deadline.

Can people sue your trust?

Trusts are an excellent estate planning tool for Californians as they provide asset protection. Although someone generally can't bring a lawsuit against a trust, filing a claim against the trustee can occur.

What if a trustee violates the terms of the trust?

If the trustee still will not comply, the court could hold him in contempt. If they continues to refuse to comply, the court may also remove them from his position. During an estate administration, a trustee's failure to comply with the trust terms is just one reason that beneficiaries may find themselves in court.

What is a felony involving dishonesty or breach of trust?

A criminal offense involving dishonesty, breach of trust, or money laundering. Some examples include, but are not limited to, theft, misappropriation, embezzlement, forgery, false identification, false report to law enforcement, tax evasion, drug possession with intent to distribute, and writing of a bad check.

When can a trustee be held personally liable?

Per California trust law, if a trustee has committed a breach of their fiduciary duty, the court can deem them personally liable for damages. The extent of liability, ultimately, depends on the severity of their offense and your situation.

What happens when trust is breached?

Whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts to his own use that property, or dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any ...

What are punitive damages for breach of trust?

Punitive damages are recoverable in a breach of fiduciary duty case when the plaintiff is able to prove by clear and convincing evidence that the breach was oppressive, fraudulent, or malicious.

What is the malfeasance of a trust?

Trustee malfeasance refers to any type of negligent, self-serving, erroneous, or retaliatory conduct committed by the trustee of a trust resulting in harm to trust assets or beneficiaries. Trustee malfeasance is a broad term encompassing many different types of offenses, both intentional and unintentional.