You've Been Named a Trustee.
Don't Risk Your Own House to Settle Theirs.

Yes. California Probate Code § 16420 allows any beneficiary to petition the court to compel a trustee to perform their duties, reduce compensation, remove the trustee entirely, or surcharge the trustee for losses caused by breach of duty. You don't have to act with bad intent — negligence, procedural errors, or missed deadlines are enough to expose you personally. If you caused a loss to the estate, you may be ordered to pay it back out of your own pocket.

There are actually two windows: trustees must send the § 16061.7 notice to all heirs and beneficiaries within 60 days of the settlor's death (or within 60 days of learning of the death). Once that notice is sent, beneficiaries have 120 days to contest the trust. If you never send the notice, the 120-day window never starts — meaning any heir can challenge the trust at any time, for years. Sending the notice is therefore one of the most important early steps in any trust administration.

Missing the 60-day deadline to send the § 16061.7 notice is a serious procedural failure. The practical consequence: the 120-day statute of limitations for trust contests never begins to run. This means disgruntled heirs retain an indefinite right to challenge the trust's validity, your actions as trustee, or the distributions you've already made. Courts have found that failure to send timely notice can itself constitute a breach of fiduciary duty — even if no contest is ultimately filed.

Yes, if the decedent received Medi-Cal benefits for long-term care — including nursing home or in-home care — you are required to notify the California Department of Health Care Services (DHCS) within 90 days of death under California Welfare & Institutions Code § 14009.5. DHCS has a right to recover from the estate for benefits paid on behalf of a Medi-Cal recipient age 55 or older. Failure to provide timely notice can expose the trustee to personal liability for recovery amounts that could have been addressed through negotiation or waiver.

Absolutely. Under California Probate Code § 16440, a trustee who commits a breach of trust is liable for the greater of: (1) the amount necessary to restore the trust to what it would have been without the breach, or (2) the profit the trustee made from the breach. There is no 'good faith' exemption for procedural errors — if you missed a deadline, failed to notify a creditor, or made an improper distribution, the fact that you meant well doesn't shield you from liability. This is why professional guidance for complex estates is not optional.

A trustee surcharge is a court-ordered financial penalty imposed on a trustee for breach of fiduciary duty. Under Probate Code § 16420, a court can order you to pay the trust for losses it suffered due to your mismanagement — out of your personal assets. For example, if you distributed trust assets before the Medi-Cal creditor period passed and DHCS then filed a recovery claim, you could be personally surcharged for the full amount of that claim. Surcharges can also include the beneficiaries' attorney fees incurred in bringing the surcharge petition.

A typical California trust administration takes 12 to 18 months from date of death to final distribution, though simpler estates can sometimes close in 6 to 9 months, and complex estates — particularly those involving real estate, business interests, disputes, or Medi-Cal recovery — can run 2 to 4 years. Key timelines: the § 16061.7 notice must go out within 60 days of death; DHCS must be notified within 90 days if the decedent received Medi-Cal; creditors have 60 days after the creditor notice to file claims; and the trustee should not make final distributions until those periods have passed.

For most California trust administrations — especially those involving real estate, Medi-Cal exposure, family conflict, or assets outside the trust — the answer is yes. The cost of an attorney is almost always less than the cost of a single mistake. Trustees are personally liable for procedural errors, missed deadlines, improper distributions, and failure to account. A Certified Specialist in estate planning, trust, and probate law can protect you from personal liability, guide you through mandatory deadlines, handle creditor negotiations, and ensure distributions are legally defensible. California Probate and Trust offers flat-fee trust administration services — call (916) 674-2066 for a free consultation.