Addressing Breach Of Fiduciary Duty

Last updated on November 11, 2025

A fiduciary is someone who acts on behalf of another person. When it comes to estate and trust administration, it is the responsibility of a fiduciary to administer the estate or trust in accordance with the rules specified by the person they are representing. Failing to comply with these rules can result in major legal and emotional challenges for beneficiaries and heirs. Whether you are accused of breaching fiduciary duty or suspect someone has breached their duty, defend your needs with swift legal guidance.

At Morrill Law, we understand what a fiduciary’s responsibilities are and what the impact of breaching those responsibilities can mean. We are fluent in the challenges of California trust and estate law, and know how to hold fiduciaries to their responsibilities, as well as defend them when they are compliant with their responsibilities.

Defending Your Rights And Interests

A breach of fiduciary duty can happen when someone who was tasked with the care of an estate or trust begins acting in their own interests, or against the interests of the trust, will or beneficiaries. Examples of these breaches can include mismanaging assets, self-dealing and failing to provide vital information to essential parties.

If you suspect someone of breaching their fiduciary duty or someone has accused you of breaching your duty, our attorneys can act on your behalf throughout the litigation. We will investigate the details surrounding your situation to defend your best interests. We can lead you through the process of creating a personalized plan to defend you, and navigate matters surrounding seeking remedies or fiduciary replacements.

Common Breaches Of Fiduciary Duty And Available Remedies

Understanding what constitutes a breach of fiduciary duty requires examining specific scenarios that commonly arise in trust administration. Not every error or disagreement constitutes a legal breach, but certain actions clearly violate the trustee’s obligations under California law.

Common breaches that trustees may commit include the following actions:

• Self-dealing: One of the most serious breaches, occurring when a trustee uses trust assets for personal benefit. For example, a trustee who purchases trust property at below-market value or loans trust funds to themselves commits self-dealing.
• Commingling assets: This happens when a trustee mixes trust property with their personal assets, making it difficult to distinguish what belongs to the trust. A trustee who deposits trust funds into their personal bank account or uses a trust credit card for personal expenses engages in prohibited commingling.
• Failure to provide accountings: California law requires trustees to provide beneficiaries with regular accountings showing all trust transactions, income and expenses. When trustees withhold this information or provide incomplete records, beneficiaries cannot verify proper administration.
• Improper investment decisions: These occur when trustees fail to follow the prudent investor rule, such as keeping all trust assets in noninterest-bearing accounts or making extremely risky speculative investments without proper diversification.
• Unauthorized distributions: These happen when trustees distribute assets contrary to trust terms or make payments to themselves beyond authorized compensation. A trustee who accelerates their own inheritance while delaying distributions to other beneficiaries violates their duty of impartiality.

When breaches occur, California courts can impose several remedies depending on the severity and circumstances:

• Removal of the trustee: This may be warranted when the trustee has engaged in serious misconduct or when the trust relationship has broken down irreparably.
• Surcharge: This requires the trustee to personally compensate the trust for losses caused by the breach, including returning improperly taken funds plus interest.
• Court-ordered accountings: Courts can order complete accountings to establish exactly what happened to trust assets and determine appropriate remedies.

It is important to recognize that not every mistake constitutes a breach of fiduciary duty. Trustees who make good faith decisions that later prove unsuccessful, or who make minor administrative errors without harmful intent, may not face liability.

Context matters significantly. Courts examine whether the trustee acted reasonably under the circumstances, maintained proper documentation and communicated appropriately with beneficiaries. The distinction between honest mistakes and actionable breaches often determines the outcome of trust litigation.

Take Action With Morrill Law

If you are involved with claims of a breach of fiduciary duty, now is the best time to contact our Walnut Creek lawyers of the representation you deserve. Schedule your initial consultation with us today by calling 925-255-0633 or emailing us here and take the first step in defending your needs today.