When comparing a trustee and a beneficiary of a trust, it is difficult to say who has “more rights,” as they each have completely different roles, powers, and responsibilities.

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While the trustee has a great deal of authority to administer the trust and manage its affairs, they also are bound by a fiduciary duty to act in the best interest of the trust beneficiaries. And although a beneficiary generally has very little control over the trust’s management, they are entitled to receive what the trust allocates to them.

In general, a trustee has extensive powers when it comes to overseeing the trust. The specific rights of any trustee are, in part, dictated by the terms of the trust instrument. However, here are some of the rights that trustees will generally have:

The power to collect, hold, and retain trust property.
The power to accept additions to the property of the trust.
The power to invest and deposit trust funds.
The power to manage, control, divide, develop, improve, exchange, partition, change the character of, or abandon trust property or any interest therein.
The power to encumber, mortgage, or pledge trust property.
The power to insure the trust’s property against damage or loss and to insure the trustee against liability to third persons.
The power to borrow money for any trust purpose to be repaid from trust property.
The power to manage claims by and against the trust.
The power to pay taxes, assessments, reasonable compensation of the trustee and employees and agents of the trust, and other expenses incurred in the collection, care, administration, and protection of the trust.
The power to make loans out of trust property to the beneficiary.
The power to pay any sum of principal or income distributable to a beneficiary.
The power to hire persons, including accountants, attorneys, auditors, investment advisers, appraisers, or other agents, to advise or assist the trustee in performing administrative duties.
The power to execute and deliver all instruments needed to accomplish or facilitate the exercise of the powers vested in the trustee.

On the other hand, the rights of the trust beneficiaries include:
The right to receive a copy of the trust document.
The right to receive timely distributions according to the terms of the trust.
The right to receive and challenge accountings.
The right to be kept reasonably informed concerning the administration of the trust.
The right to impartial treatment by the trustee.
The right to petition the court to have the trustee suspended or removed.

Can a Trustee Override a Beneficiary?
Yes, a trustee can override a beneficiary if the beneficiary requests something that is not permitted under the law or by the terms of the trust.

Under California Probate Code §16000, trustees must administer the trust according to the terms of the trust instrument. This means that if a beneficiary disagrees with the distribution schedule or any other terms outlined in the trust, the trustee must disregard the beneficiary’s wishes and carry out the trust’s written requirements.

If the terms of the trust are ambiguous, a trustee should consult with legal counsel before taking any action. If the ambiguity cannot be resolved with the consent of the beneficiaries, trustees can ask the probate court for guidance through a petition for instructions.

Can a Beneficiary Override a Trustee?
No, beneficiaries generally cannot override a trustee unless the trustee fails to follow the terms of the trust instrument or breaches their fiduciary duty.

Even when a beneficiary disagrees with a trustee’s actions, they typically cannot override the trustee just because they don’t like their choices. Unless the trustee clearly violates the terms of the trust or breaches their fiduciary duty, there is typically little a beneficiary can do.

However, suppose a beneficiary thinks that the trustee is abusing their power or failing to follow the requirements outlined in the trust instrument. In that case, they have the legal right to ask the court to suspend or remove the trustee from their position.

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RMO LLP serves clients in Los Angeles, Santa Monica, Orange County, San Diego, Kansas City, Miami, and communities throughout California, Florida, Missouri and Kansas.

Our founder, Scott E. Rahn has been named “Top 100 – Trust and Estate Litigation” by SuperLawyers, Trusts and Estates Litigator of the Year, and Best Lawyers in America for Litigation