In California, trustees are held to the legal standard of a fiduciary. A fiduciary’s duties  include the duty of loyalty (acting solely in the interest of beneficiaries), the duty of impartiality (not favoring one beneficiary over another), and the duty to invest trust assets prudently.

Yes. If a trustee mismanages funds, engages in "self-dealing," or fails to follow the trust's instructions, beneficiaries can sue. If the court finds a breach of duty, the trustee may have to pay for the losses out of their own pocket (known as "surcharge").

Transparency is the best way to avoid conflict. Trustees have a legal "duty to inform." This means providing regular updates on the status of the administration and responding to reasonable requests for information from beneficiaries.

Every penny must be accounted for. A trustee must keep meticulous records of all receipts, disbursements, bank statements, tax filings, and bills paid. California law requires a formal accounting to be provided to beneficiaries unless they waive it.

Yes. If a trustee is incapacitated, fails to perform their duties, or is found to be acting dishonestly, a beneficiary can petition the Probate Court to have them removed and replaced with a successor or a professional fiduciary.