When a trustee mismanages trust assets, refuses to account for what they've done with trust funds, favors one beneficiary over others, or simply goes silent — beneficiaries have legal options. California law establishes clear grounds for trustee removal and a court-supervised process for enforcing those rights.

This article explains the legal standards for trustee removal in California, the process for seeking removal, and what beneficiaries can do in the meantime to protect the trust's assets.

Who Has the Authority to Remove a Trustee?

A trustee can be removed in two ways under California law: voluntarily, or by court order.

Removal by the Settlor

While the person who created the trust (the settlor) is alive and competent, they typically have broad authority to remove and replace the trustee — especially if the trust was revocable. The trust document usually spells out how this is done. If the settlor is deceased or incapacitated, removal must go through the trust document's built-in mechanism or the court.

Removal by Co-Trustees or Under Trust Terms

Many trusts include provisions allowing co-trustees or a majority of beneficiaries to remove a trustee under specified circumstances. Review the trust document carefully — these provisions vary widely, and some require unanimous beneficiary consent.

Court-Ordered Removal

Any beneficiary may petition the Superior Court (probate department) for an order removing the trustee. This is the path when the trustee refuses to resign voluntarily and the trust document does not provide a private removal mechanism — or when the situation is urgent enough to require court intervention.

Grounds for Trustee Removal Under California Law

California Probate Code section 15642 lists the statutory grounds on which a court may remove a trustee. The court may remove a trustee if any of the following exist:

The court may, in its discretion, remove a trustee and appoint a successor trustee... if the court determines that removal of the trustee is required to protect the interests of the beneficiaries.

Cal. Prob. Code § 15642(b) — Cited but not quoted verbatim in full; verify statutory text.

The specific statutory grounds include:

• The trustee has committed a breach of the trust
• The trustee is insolvent or otherwise unfit to administer the trust
• Hostility or lack of cooperation among co-trustees that impairs proper administration
• The trustee failed or is unfit to act as trustee
• The trustee's compensation is excessive
• It is in the best interests of the beneficiaries to remove the trustee

The "best interests of the beneficiaries" standard gives courts meaningful discretion. Even without a clear-cut breach, persistent failure to communicate, systematic mismanagement of trust investments, favoritism among beneficiaries, or self-dealing transactions can support removal under this standard.

The Process for Removing a Trustee in California

Step 1: Demand an Accounting

Before filing a removal petition, beneficiaries should formally demand a trust accounting. Under Probate Code section 16062, a trustee of an irrevocable trust must account to beneficiaries at least annually, upon a reasonable request, and at the termination of the trust. A trustee's failure to provide an accounting when properly demanded is itself a breach of duty — and the account, when received, often documents the mismanagement that forms the basis for removal.

Send the demand in writing and keep a copy. If the trustee fails to respond or produces a deficient accounting, that failure can be presented to the court as evidence of unfitness.

Step 2: Attempt to Resolve Without Litigation

Court proceedings are expensive and slow. If the grounds for removal are clear enough that the trustee might resign with appropriate pressure — a demand letter from counsel, a threat of litigation, or facilitated family negotiations — voluntary resolution is almost always preferable. A resignation with an agreed-upon successor and a final accounting avoids months of litigation.

Some situations do not permit delay, however. If trust assets are being actively dissipated or misappropriated, an emergency petition for temporary suspension of the trustee's powers may be necessary before any negotiation can meaningfully occur.

Step 3: File a Petition for Removal

The removal petition is filed in the probate department of the Superior Court in the county where the trust is administered (or where the principal place of administration is located). The petition must:

• Identify the trust and the trustee sought to be removed
• State the grounds for removal with supporting facts
• Propose a successor trustee
• Request any temporary orders needed to preserve trust assets during the proceeding

Notice must be given to all interested parties — the trustee being removed, all beneficiaries, and any co-trustees. The trustee has the right to respond and to present evidence at the hearing.

Step 4: The Hearing and Court Order

At the removal hearing, the court evaluates the evidence and applies the section 15642 standards. If removal is granted, the court simultaneously appoints a successor trustee — either the person the petitioner proposed or someone the court selects, including a professional fiduciary if no suitable individual is available. The court may also order the removed trustee to account for all trust property and transactions and, where appropriate, may surcharge the trustee for losses caused by their breach.

Can a Trustee Be Temporarily Suspended?

Yes. If trust assets are at immediate risk — the trustee is actively dissipating funds, transferring assets, or refusing to preserve trust property — a beneficiary can seek a temporary restraining order (TRO) or preliminary injunction suspending the trustee's powers pending the removal hearing. California courts can act quickly in genuine emergencies, but the petitioner must demonstrate both a likelihood of success on the merits and the risk of irreparable harm if relief is not granted.

Emergency relief requires careful, well-documented papers filed correctly — a hurried or procedurally deficient emergency petition can be denied even when the underlying facts are strong.

What About Trustee Fees Already Paid?

A court that finds a trustee committed a breach of trust may surcharge the trustee for any losses caused by the breach — including investment losses attributable to mismanagement, costs incurred by the trust in litigating the breach, and attorney's fees in certain circumstances. The court may also disgorge trustee compensation paid during periods of breach.

A trustee who resigns in the face of removal proceedings does not automatically escape liability. Claims against a former trustee for breach committed during their tenure survive the change in trustee.

Working With a Trust Litigation Attorney

Trustee removal proceedings are contested court matters. A beneficiary navigating the process without counsel is at a significant disadvantage against a trustee who retains trust funds to pay their own legal defense. Trust litigation counsel can:

• Evaluate the strength of the removal grounds and advise on strategy
• Send a formal demand letter that often prompts resignation without litigation
• File and litigate the removal petition if necessary
• Seek emergency orders where assets are at immediate risk
• Pursue surcharge and disgorgement claims against the removed trustee

Legal Disclaimer: This article is for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Consult a licensed California attorney for advice specific to your situation. McLellan Law Group, LLP · 20665 4th Street, Ste. 202, Saratoga, CA 95070 · (408) 963-7533