Liability for Breach of Trust

Division 9, Part 4, Chapter 4 deals with the liability of trustees to beneficiaries under the California Trust Law. Article 1 deals with liability for breach of trust.

Section 16400 states that a violation by the trustee of any duty that the trustee owes the beneficiary is a breach of trust.

Section 16401 states that the trustee is not liable to the beneficiary for the acts or omissions of an agent. The trustee is liable to the beneficiary for an act or omission of an agent employed by the trustee in the administration of the trust that would be a breach of the trust if committed by the trustee.

Section 16402 provides that a trustee is not liable to the beneficiary for a breach of trust committed by a cotrustee. A trustee is liable to the beneficiary for a breach committed by a cotrustee under any of the five specified circumstances.

Section 16403 states that a successor trustee is not liable to the beneficiary for a breach of trust committed by a predecessor trustee. A successor trustee is liable to the beneficiary for breach of trust involving acts or omissions of a predecessor trustee in any of the three specified circumstances.

Article 2 deals with remedies for breach of trust. Section 16420 provides that, if a trustee commits a breach of trust, or threatens to commit a breach of trust, a beneficiary or cotrustee of the trust may commence a proceeding for any of the nine specified purposes that is appropriate. The provision of remedies for breach of trust does not prevent resort to any other appropriate remedy provided by statute or the common law.

Section 16421 provides that the remedies of a beneficiary against the trustee are exclusively in equity.