Missing Trust Assets in California: How to Hold a Trustee Accountable

Trusts are created to protect assets and ensure loved ones receive their rightful inheritance.
But sometimes, when the trustee manages the trust, money or property mysteriously disappears — leaving beneficiaries confused and powerless.

If you suspect that trust assets are missing, California law gives you strong rights to investigate, demand accountings, and recover what’s been lost.

1. Trustee’s Legal Duties Under California Law

Under California Probate Code §§16000–16015, trustees must:

• Act solely in the interest of beneficiaries
• Keep accurate records and provide accountings
• Avoid self-dealing or conflicts of interest
• Preserve, protect, and prudently invest trust property

Failure to meet these obligations can amount to breach of fiduciary duty, one of the most serious violations in trust administration.

2. Warning Signs That Trust Assets May Be Missing

Beneficiaries should stay alert to the following red flags:

• Sudden unexplained withdrawals or asset transfers
• Trustee refuses to share financial reports or documents
• Property sold below market value or without notice
• Delayed distributions or evasive communication
• Unusual expenses charged to the trust

Even small irregularities can point to larger financial misconduct.

3. What You Can Do: Legal and Forensic Remedies

If you suspect missing trust assets, California law offers several remedies:

a. Demand a Formal Accounting

Beneficiaries can file a petition for accounting to require the trustee to disclose all transactions.

b. Seek a Court-Ordered Audit or Investigation

A forensic accountant can trace bank records, asset transfers, and hidden accounts to uncover misappropriations.

c. Petition for Trustee Removal

If misconduct is proven, the court can remove the trustee and appoint a neutral successor.

d. File a Surcharge Action

Beneficiaries can seek repayment from the trustee personally for losses caused by negligence or fraud.

e. Freeze or Recover Assets

Courts can freeze trust accounts, prevent further loss, and recover diverted funds through judgment.

4. Role of Forensic Accounting in Missing Trust Assets

Forensic experts can trace:

• Hidden transfers or off-book accounts
• Suspicious payments or property sales
• Digital evidence of asset diversion

Their reports often serve as critical evidence in probate court proceedings.

5. How a California Trust Attorney Can Help

An experienced trust litigation attorney can:

• Demand transparency through discovery
• Subpoena bank records
• Coordinate with forensic experts
• File removal or surcharge petitions
• Negotiate settlements or court restitution

At Inheritance Recovery, we specialize in identifying and recovering missing trust assets — ensuring trustees are held fully accountable.

Conclusion

When assets vanish, time is crucial.
A dishonest trustee can quickly deplete or conceal estate funds. But with legal action, beneficiaries can trace, recover, and protect what’s rightfully theirs.

Contact Inheritance Recovery today to discuss missing trust assets, trustee misconduct, or forensic remedies in California.