Trusts can bring order and clarity to estate planning by laying out how your assets should be cared for and distributed.
At Vistas Law Group, we strive to offer thorough assistance to individuals and families alike, delivering personalized, bilingual services to clients across California. We have over 25 years of combined experience in trust litigation, probate, and more, allowing us to guide you through various aspects of planning.
In this piece, we will discuss what trustees and beneficiaries do, so you can see how each role fits into a complete estate plan.
What is a Trustee?
A trustee is the person or group responsible for handling trust assets in line with the trust’s written instructions. This person often safeguards property, oversees financial decisions, and carries out distributions to the named recipients. A trustee may be an individual, a corporate entity, or even co-trustees working in tandem.
The trustee is expected to act under a fiduciary duty. In plain terms, that means they must be loyal to the beneficiaries’ interests, avoid conflicts, and manage the trust as carefully as any sensible person would. Let’s look at the trustee’s core responsibilities.
Core Trustee Responsibilities
- Protecting and supervising trust assets
- Making prudent investment decisions that match the trust’s goals
- Carrying out distributions according to the terms the grantor set
- Maintaining detailed records of all transactions
- Filing trust-related tax returns on time
- Reporting the trust’s financial activity to the beneficiaries
- Acting with fairness toward every beneficiary
All these duties revolve around one key principle: the trustee should always handle the trust with care and loyalty. When selecting a trustee, people often look for someone they can rely on to follow the trust’s provisions faithfully.
What is a Beneficiary?
A beneficiary is the individual or entity named to receive benefits from the trust. These benefits might include property distributions, financial disbursements, or income earned from trust investments. A beneficiary can be an individual, like a close relative, or an organization such as a charitable foundation.
In California, beneficiaries are protected under the California Probate Code, particularly Division 9 (Trust Law), Sections 16000 through 16504, which sets forth the duties of trustees and the rights of beneficiaries. These laws ensure that beneficiaries are treated fairly and that trustees act in accordance with the terms of the trust.
Beneficiary Rights
- Right to Information: Beneficiaries have the right to receive important information about the trust. Trustees are required to keep beneficiaries reasonably informed, including providing annual accountings and responding to requests for details about trust administration.
- Right to Distributions: Beneficiaries are entitled to receive distributions as specified in the trust document.
- Right to Enforce the Trust: If a trustee fails to meet their legal obligations, beneficiaries can take legal action to enforce the trust’s terms or remove the trustee if necessary.
- Right to a Trustee’s Loyalty: Trustees must act in the best interests of all beneficiaries and avoid conflicts of interest or favoritism.
California trust law gives beneficiaries the ability to hold trustees accountable and to protect their interests throughout the administration of the trust.
Trustee vs. Beneficiary: Distinct Roles and Responsibilities
Although trustees and beneficiaries are tied together by the trust, the tasks assigned to each differ. The trustee is in charge of the trust’s practical and financial management, while the beneficiary receives the benefits laid out by the trust agreement. The table below offers a concise look at how their roles diverge.
| Role | Primary Duties | Main Responsibilities |
| Trustee | Manages the trust, safeguards assets, and distributes funds | Invest assets responsibly File tax returns Keep detailed records |
| Beneficiary | Receives allocated portions of trust assets | Entitled to trust distributions Get trust updates and accounting Can challenge trustee actions if they sense a violation |
In short, the trustee shoulders the operational duties and must uphold a fiduciary standard. Meanwhile, the beneficiary claims what is owed according to the trust’s outlined rules. Though these roles are separate, they rely upon each other to keep the trust running properly.
Potential Conflicts and Their Resolution
Occasionally, tension can emerge between trustees and beneficiaries. For example, a beneficiary may feel that the trustee is moving too slowly in distributing funds, or possibly investing assets in a way that feels off-track. On the other side, a trustee might find that beneficiaries are asking for distributions that contradict the trust’s terms.
Communication can help address many disagreements before they become formal disputes. Regular updates, clear explanations, and timely responses often prevent situations from escalating. In more heated contexts, mediation can guide all parties toward a healthier compromise. If that proves unsuccessful, the trustee or the beneficiaries may seek legal remedies to guard the trust’s interests.
Legal Considerations for Trustees and Beneficiaries
The laws that apply to trusts can vary by state, and trustees must be aware of any obligations specific to their jurisdiction. Some states have strict reporting requirements, while others may have rules on what expenses trustees can pay from the trust. Trustees often hire attorneys for targeted advice on meeting these standards.
Beneficiaries should also be mindful of their rights. If they suspect that a trustee is failing to honor the instructions set out in the trust, they can seek legal support to preserve what the trust intended them to have. This might mean filing a legal notice, asking a court to remove the trustee, or constructing another form of remedy outlined in state law.
Need Assistance with Your Estate Plan? Contact Vistas Law Group
At Vistas Law Group, we aim to assist you with wills, trusts, and the steps that follow. Our team understands the importance of safeguarding assets, whether you need help setting up a trust, handling probate, or addressing concerns over the trustee’s conduct. We offer bilingual support to make sure you feel comfortable, informed, and heard.
To learn more about our services, call us at (213) 745-8747 or visit our Contact Us page. We’re prepared to talk through your goals and help you maintain a plan that aligns with your wishes. Our commitment is to seek the results you need while giving personal attention to your family’s future.