Trustee Not Distributing Trust Assets California: What Can You Do?

You're entitled to your inheritance, but the trustee won't distribute it. Calls go unreturned. Emails ignored. Months or years pass with excuses, delays, and no accounting. This is one of the most frustrating situations beneficiaries face - and it's more common than you think.

If a California trustee is not distributing trust assets when required, you have powerful legal rights to enforce distribution. This comprehensive guide explains what to do when trustees refuse to distribute, won't communicate, or breach their fiduciary duties.

How Long Does a Trustee Have to Distribute Assets in California?

There's no single deadline, but trustees must distribute assets within a reasonable time after the trustor's death. What's "reasonable" depends on estate complexity:

Typical Timelines for Distribution:

• Simple trusts (liquid assets, no disputes): 6-12 months
• Average complexity (real property, stocks, standard assets): 9-18 months
• Complex trusts (business interests, litigation, tax issues): 18-36 months
• Outright distributions: Should occur within 12-18 months maximum

Factors justifying delay:

• Selling real estate (3-12 months)
• Resolving disputes or litigation
• Complex tax issues requiring professional analysis
• Paying creditor claims (120-day period)
• Illiquid assets requiring time to convert to cash
• Trust contests or will contests

Factors NOT justifying delay:

• Trustee "too busy" to handle duties
• Trustee wants to delay to benefit themselves
• Trustee withholding to punish beneficiaries
• Trustee refusing to communicate
• Trustee claiming absolute discretion (most trusts require distribution)

Why Would a Trustee Not Distribute Assets?

Common reasons trustees delay or refuse distribution:

1. Lack of Knowledge

Many family member trustees don't understand their legal obligations. They may genuinely not know they need to distribute within a reasonable time, provide accountings, or communicate with beneficiaries.

2. Self-Interest

Trustee is also a beneficiary and wants to:

• Keep assets under their control
• Use trust property personally (live in house rent-free)
• Delay to benefit from interest/income
• Prevent equal distribution to other beneficiaries

3. Disputes Among Beneficiaries

Trustee fears distributing to one beneficiary when others dispute distribution. This is NOT a valid excuse - trustees must follow trust terms regardless of family disagreements.

4. Tax or Debt Concerns

Legitimate concerns about:

• Unpaid estate taxes
• Unknown creditors
• Pending claims
• Insufficient liquidity to pay obligations

5. Control Issues

Some trustees enjoy the power and don't want to relinquish control, even after duties complete.

6. Professional Trustees Maximizing Fees

Institutional or professional trustees sometimes drag out administration to increase their compensation (charged hourly or as percentage).

California Law: Trustee Duties to Distribute

Under California Probate Code, trustees have mandatory fiduciary duties:

Duty to Follow Trust Terms (Probate Code § 16000)

Trustees MUST distribute according to trust document provisions. If trust says "distribute to beneficiaries within 1 year," trustee cannot refuse or delay beyond reasonable time.

Duty to Act Impartially (Probate Code § 16003)

If trust has multiple beneficiaries, trustee must treat all fairly. Cannot favor one beneficiary over another without trust authorization.

Duty to Keep Beneficiaries Informed (Probate Code § 16060-16069)

Trustees must:

• Send 60-day notice after death (§ 16061.7)
• Respond to reasonable beneficiary requests
• Provide accountings showing all transactions
• Keep beneficiaries reasonably informed about administration

Duty to Act with Reasonable Care (Probate Code § 16040)

Must administer trust with care, skill, and caution a prudent person would use. Unreasonable delays breach this duty.

What to Do When Trustee Not Distributing Trust California

Follow these steps in order:

Step 1: Document Everything

Start a paper trail:

• Keep copies of all letters, emails, texts to trustee
• Note dates of all communication attempts
• Save voicemails and call logs
• Document all promises trustee made
• Record timeline of delays
• Gather any trust documents you have

This evidence will be critical if you need to petition court.

Step 2: Send Formal Written Demand

Send via certified mail, return receipt requested:

Include:

1. Your name and relationship to deceased trustor
2. Statement you're a trust beneficiary
3. Specific demand for distribution under trust terms
4. Request for full accounting (see sample below)
5. Deadline for response (30 days)
6. Reference to California Probate Code rights
7. Statement you'll petition court if no response

Sample Demand Letter:

*[Your Name] [Your Address] [Date]

[Trustee Name] [Trustee Address]

Re: [Trust Name] - Demand for Distribution and Accounting

Dear [Trustee Name]:

I am a beneficiary of the [Trust Name] trust created by [Trustor Name], who passed away on [Date]. According to the trust terms, I am entitled to [describe your share/distribution].

It has now been [X months/years] since [Trustor]'s death, yet you have not distributed trust assets or provided an accounting. I have attempted to contact you on [list dates] without adequate response.

Under California Probate Code Sections 16060-16069, I have the right to:

1. Receive trust distributions according to trust terms
2. Demand a full accounting showing all trust transactions
3. Be kept reasonably informed about trust administration

I hereby formally demand:

1. Distribution of my inheritance under the trust within 30 days
2. Complete accounting showing all assets, income, expenses, gains, losses, and distributions since [Trustor]'s death
3. Explanation for any delays in distribution

If I do not receive the accounting and distribution (or reasonable explanation with timeline) within 30 days, I will petition the probate court to compel distribution, compel accounting, and remove you as trustee for breach of fiduciary duty. I will also seek recovery of my attorney fees from the trust.

Please contact me immediately at [phone] or [email].

Sincerely, [Your Name]*

Step 3: Demand Trust Accounting

Under Probate Code § 16062, beneficiaries can demand accounting showing:

• All trust assets (with values)
• All income received
• All expenses paid
• All distributions made
• All gains and losses
• Current asset values
• Beginning and ending balances

Trustee must provide accounting within 60 days of proper written request.

Step 4: Review Trust Document

Obtain complete copy of:

• Original trust document
• All amendments and restatements
• Any related documents

Under Probate Code § 16061.7, trustees CANNOT refuse to provide trust copy to beneficiaries.

Look for:

• Distribution provisions (when you should receive assets)
• Any conditions on distribution
• Whether trustee has discretion or mandatory distribution
• Compensation provisions for trustee
• Provisions about accountings

Step 5: Hire Trust Litigation Attorney

If trustee still refuses to distribute or communicate:

Attorney can:

• Send attorney demand letter (gets immediate attention)
• Review trust and analyze your rights
• Evaluate trustee's excuses/justifications
• Prepare petition to compel distribution
• Petition to remove trustee
• Petition to compel accounting
• File lawsuit for breach of fiduciary duty

Most cases settle after attorney involvement - trustees realize they face removal and personal liability.

Step 6: Petition Probate Court

File petition for:

Petition to Compel Distribution:

• Cite trust provisions requiring distribution
• Show unreasonable delay
• Request court order compelling immediate distribution
• Seek attorney fees

Petition to Compel Accounting:

• Under Probate Code § 16062
• Cite beneficiary right to accounting
• Show trustee refused demand
• Request sanctions

Petition to Remove Trustee:

• Under Probate Code § 15642
• Cite grounds: breach of duty, failure to distribute, failure to account
• Request replacement trustee
• Seek surcharge (personal liability) for damages

Petition for Instructions:

• Ask court to interpret trust provisions
• Determine if trustee must distribute
• Get court guidance on timing

Can a Beneficiary Demand Trust Accounting California?

YES - ABSOLUTELY. This is one of your most important rights.

California Probate Code § 16062

Any beneficiary can demand full accounting showing:

• Complete inventory of all trust assets
• All income received by trust
• All expenses paid from trust
• All distributions to any beneficiaries
• All gains or losses on investments
• Compensation paid to trustee
• Attorney fees paid
• Beginning balance and ending balance

Trustee Must Provide Within 60 Days

Refusal is serious breach of fiduciary duty. Courts routinely:

• Order accounting
• Remove trustees who refuse
• Award beneficiaries their attorney fees
• Surcharge trustee for damages

What If Trustee Provides Incomplete Accounting?

Some trustees provide "informal" accountings missing critical information.

Formal accounting must include:

• Detailed list of every asset
• Original values at death (date-of-death values)
• Current values
• Every single transaction (sales, purchases, transfers)
• All income items
• All expense items with supporting documentation
• Beneficiary distributions
• Changes in asset holdings

Reject incomplete accountings. Demand formal accounting meeting California standards.

Trustee Not Communicating With Beneficiaries California

This is breach of fiduciary duty under Probate Code § 16060.

Duty to Keep Beneficiaries Informed

Trustees must:

• Send 60-day notice after death (§ 16061.7)
• Respond to reasonable beneficiary inquiries
• Provide requested information
• Explain significant decisions
• Disclose material facts affecting beneficiaries

What Constitutes "Not Communicating"?

• Ignoring calls, emails, letters
• Refusing to answer questions
• Providing vague or evasive responses
• Refusing to provide accounting
• Refusing to provide trust copy
• Refusing to explain delays
• Refusing to provide distribution timeline

Remedies for Trustee Not Communicating

File petition for:

• Order compelling communication
• Order compelling accounting
• Removal of trustee
• Appointment of independent trustee
• Attorney fees

Courts take communication failures seriously - it's often the first sign of mismanagement or self-dealing.

How to Remove Trustee in California

Legal Grounds Under Probate Code § 15642

Court can remove trustee for:

• Breach of fiduciary duty
• Substantial failure to perform duties
• Lack of cooperation making administration impractical
• Unfitness to administer trust
• Mismanagement
• Failure to account
• Self-dealing
• Conflicts of interest
• Unreasonable delays in distribution

Evidence Needed

To remove trustee, show:

• Specific breaches of duty (with dates, documentation)
• Demands you made that trustee ignored
• Financial harm from trustee's actions/inactions
• Why removal necessary (less drastic remedies inadequate)
• Proposed replacement trustee

Strong evidence includes:

• Certified mail receipts showing ignored demands
• Email chains showing no response
• Accounting showing self-dealing or mismanagement
• Expert testimony about trustee failures
• Evidence of assets declining in value
• Proof of personal use of trust assets

Removal Process

1. File Petition for Removal in county where trust administered
2. Serve trustee with petition and hearing notice
3. Discovery - obtain documents, depositions
4. Hearing - present evidence to judge
5. Court order - judge removes trustee if grounds proven
6. New trustee appointed - continues administration

Timeline: 3-9 months typically

Consequences for Removed Trustee

• Loss of position
• Loss of trustee compensation
• Potential surcharge (personal liability for losses)
• Payment of beneficiaries' attorney fees
• Possible criminal charges if fraud/theft

Trustee Breach of Fiduciary Duty California

What Constitutes Breach?

Common breaches:

• Not distributing within reasonable time
• Self-dealing (using trust assets personally)
• Favoring one beneficiary over others
• Failing to preserve trust property
• Making imprudent investments
• Failing to account
• Commingling trust funds with personal funds
• Conflicts of interest
• Not following trust terms

Damages for Breach

Beneficiaries can sue for:

• Lost value of trust assets
• Lost investment returns
• Costs incurred due to delay
• Emotional distress (in extreme cases)
• Punitive damages (if fraud/malice)
• Attorney fees

Surcharge

Court can order trustee to pay personally:

• Amount trust lost due to breach
• Profits trustee made from breach
• Beneficiaries' attorney fees
• Court costs

This comes from trustee's personal assets, not trust.

Trustee Taking Too Long California - How Long is Too Long?

General rule: 12-18 months is reasonable for most trusts.

Red flags:

• 2+ years with no distribution and no valid reason
• Trustee can't explain what's taking so long
• Simple estate dragging on for years
• Trustee making excuses
• No progress being made
• Trustee benefiting from delay

Valid reasons for delay beyond 18 months:

• Complex litigation
• IRS estate tax audit (can take years)
• Business valuation disputes
• Illiquid assets requiring time to sell
• Claims by creditors requiring resolution
• Will contests or trust contests

Invalid excuses:

• "I'm busy with my job"
• "I'll get to it when I have time"
• "I need to figure out what to do"
• "The beneficiaries don't agree" (trustee must follow trust, not poll beneficiaries)
• "I want to keep the property in the trust" (if trust says distribute, must distribute)

Can Beneficiary See Trust Document California?

YES - ABSOLUTELY.

Probate Code § 16061.7

Trustees MUST provide complete copy of:

• Trust document
• All amendments
• All restatements
• Related estate planning documents

Cannot refuse. Cannot charge fee. Cannot delay.

Trustee Cannot Withhold Portions

Some trustees wrongly believe they can:

• Show beneficiaries only "their part"
• Redact provisions about other beneficiaries
• Withhold amendments
• Claim document is "private"

All WRONG. Beneficiaries entitled to complete, unredacted trust.

Penalty for Refusing

Court can:

• Order immediate disclosure
• Remove trustee
• Surcharge trustee for damages
• Award beneficiaries' attorney fees

Beneficiary Rights California Trust Law

Under California Probate Code, you have right to:

1. Notice - 60-day notice after death (§ 16061.7)
2. Trust copy - complete unredacted document
3. Accounting - demand formal accounting showing all transactions
4. Information - be kept reasonably informed
5. Distribution - receive inheritance per trust terms
6. Object - challenge trustee actions
7. Petition court - enforce your rights
8. Sue for breach - recover damages from mismanagement
9. Remove trustee - for cause
10. Attorney representation - hire your own attorney

Trustees cannot:

• Deny these rights
• Condition rights on beneficiary agreement
• Charge beneficiaries for exercising rights
• Retaliate against beneficiaries who assert rights

Statute of Limitations - How Long to Sue Trustee

Depends on claim type:

Fraud or Breach Not Disclosed

• 4 years from discovery of breach (Probate Code § 16460)
• Starts when beneficiary knows or should have known

Breach Disclosed in Accounting

• 3 years after receiving adequate accounting (§ 16460)
• BUT only if accounting specifically disclosed the breach

Contest Trust Validity

• 120 days after receiving 16061.7 notice (§ 16061.8)
• This is for challenging trust validity itself

Don't wait - evidence disappears, witnesses forget, trustees dissipate assets.

Do You Need Attorney for Trust Distribution?

Highly recommended if:

• Trustee won't respond to demands
• Trustee refuses accounting
• Trustee refuses distribution beyond reasonable time
• You suspect self-dealing or mismanagement
• Trustee is using trust property personally
• Other beneficiaries getting preferential treatment
• Assets declining in value
• You've demanded distribution and been refused
• Trustee removed you from property
• Complex legal issues

Attorney can:

• Analyze trust and your rights
• Send powerful attorney demand letter
• Compel accounting through court
• Force distribution
• Remove problematic trustee
• Recover damages for losses
• Get your attorney fees paid from trust

Cost: Many trust litigation attorneys work on contingency (percentage of recovery) or hybrid fee arrangements. Initial consultation usually free.

Trust Distribution FAQ

Q: Can trustee refuse to distribute trust assets? A: Not if trust requires distribution. Trustee must follow trust terms and distribute within reasonable time. Refusal is breach of duty.

Q: What if trust says trustee has "discretion"? A: Even discretionary trusts require trustees to make decisions in good faith and within reasonable time. Cannot simply refuse indefinitely.

Q: Can I force trustee to sell property to distribute? A: If trust requires distribution and property must be sold to distribute, yes. Trustee must take steps to liquidate if necessary.

Q: What if I'm only one of several beneficiaries? A: Doesn't matter. Each beneficiary has independent right to demand accounting, petition court, and enforce distribution.

Q: Do I need other beneficiaries to join lawsuit? A: No. You can petition court individually to protect your interests.

Q: Will I have to pay attorney fees? A: If you win, court usually orders trustee (or trust) to pay your reasonable attorney fees. Many attorneys work on contingency.

Q: How long does it take to compel distribution? A: Petition hearing typically 2-4 months out. Settlement often occurs once petition filed - trustees realize they're exposed.

Protect Your Rights - Take Action

If a California trustee is not distributing trust assets, not communicating, or refusing to account, act now:

1. ✓ Document all communication attempts
2. ✓ Send formal written demand via certified mail
3. ✓ Demand complete trust copy
4. ✓ Demand formal accounting
5. ✓ Set firm deadlines (30 days)
6. ✓ Hire experienced trust litigation attorney
7. ✓ File petition to compel distribution

Don't wait - trustees sometimes dissipate assets, and your rights may have time limits.

Get Legal Help - Trust Distribution Attorney

Our Los Angeles County trust administration and litigation attorney helps beneficiaries enforce their rights when trustees:

• Refuse to distribute assets
• Won't communicate or respond
• Fail to provide accountings
• Breach fiduciary duties
• Mismanage trust property
• Engage in self-dealing

We also represent trustees facing beneficiary disputes and removal petitions.

Services:

• Free case evaluation
• Demand letters
• Petitions to compel distribution
• Petitions to compel accounting
• Trustee removal proceedings
• Breach of fiduciary duty litigation
• Trust contests
• Surcharge actions

Free consultation: (818) 291-6217

With 25+ years handling trust disputes in Los Angeles Superior Court, we know how to enforce beneficiary rights and compel trustees to fulfill their legal obligations.

Don't let a trustee wrongfully withhold your inheritance. Call today to discuss your rights and options.

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Attorney Rozsa Gyene (CA State Bar #208356) has litigated hundreds of trust disputes in Los Angeles County. This guide reflects California law as of January 2025.