Trustee Conflicts of Interest: How the Law Steps In
Trustees are legally obligated to manage a trust for the benefit of the beneficiaries. But sometimes, a trustee may put their own interests first — a situation known as self-dealing or a conflict of interest. Even subtle conflicts can reduce the value of an inheritance if left unchecked.
Common Signs of Trustee Conflicts
- Selling trust assets to themselves or to friends/family at below-market value
- Using trust funds for personal expenses
- Favoring one beneficiary over another
- Failing to provide transparent accounting or updates
These actions can quietly erode the estate, creating long-term financial harm.
How the Law Protects Beneficiaries
California law strictly limits trustee misconduct. Courts can:
- Reverse improper transactions
- Require repayment of misused assets
- Remove a trustee for breach of duty
- Award legal fees to beneficiaries forced to take action
Even small conflicts matter — beneficiaries have the right to challenge trustees who act in their own interest rather than the trust’s.
Protecting Your Inheritance
If you suspect a conflict:
- Request a detailed accounting
- Keep records of suspicious actions
- Consult a probate attorney early
At The Inheritance Recovery Attorneys LLP, we help beneficiaries identify conflicts, take legal action, and ensure that the inheritance you’re entitled to is preserved.
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