Trustee: Definition and How It Works in California
A trustee is the person or institution that holds and manages trust property for the beneficiaries, according to the terms the settlor set out in the trust document.
How it works in California
A trustee’s authority comes from the trust document itself, not from a court appointment, which is what separates the role from an executor. See how a trustee differs from an executor in California for that comparison.
A trustee owes fiduciary duties to the beneficiaries under the Probate Code, including keeping them reasonably informed (Prob. Code, § 16060), managing trust property prudently, keeping trust assets separate from personal assets, and administering the trust according to its terms rather than the trustee’s own preferences.
A trust can name one trustee or several acting together, and it can name a corporate trustee, such as a bank or trust company, instead of or alongside an individual.
Why it matters
For example, a trustee who invests trust funds the same way they invest their own money, without regard to the beneficiaries’ needs, can be personally liable for the resulting losses.
Common mistakes
New trustees sometimes treat the role as informal because a family member named them, when the legal duties are the same regardless of who holds the office.
Related terms
- Beneficiary: the person a trustee manages trust property for.
- Certification of Trust: proves a trustee’s authority without disclosing the whole trust.
- Executor: the will-based counterpart to a trustee.
- Fiduciary Duty: the legal standard every trustee must meet.
- Heggstad Petition: fixes an asset a trustee never received formal title to.
- HEMS Standard: a common limit on a trustee’s discretion to distribute.
- Probate Bond: insurance a trustee sometimes has to post.
- Probate Code Section 850 Petition: resolves a dispute over what a trustee actually owns.
- Settlor: the person who creates the trust a trustee administers.
- Special Needs Trust: a trust a trustee must manage without disqualifying a disabled beneficiary from benefits.
- Successor Trustee: takes over when the original trustee cannot continue.
- Trust Administration: the full process a trustee carries out.
- Trust Decanting: a power some trustees have to update a trust’s terms.
- Trustee Removal: a court process for replacing a trustee who fails at the role.
Part of the California estate planning glossary. For the full treatment, see Executor vs. Trustee in California.
Want a straight read on where you stand?
Talk to Eric. A free 30-minute call, no pitch. He’ll tell you where you’re exposed, what it would cost to fix, and what you can skip.
Talk to Eric