Practice Area

Trustee Theft

San Jose Estate Fraud Lawyer

When Trust Is Betrayed: How We Combat Trustee Theft and Mismanagement

Trustee theft occurs when a trustee, who is entrusted with managing a trust’s assets, intentionally takes funds or property for their benefit rather than for the benefit of the trust’s beneficiaries. This estate fraud is a serious violation of the trustee’s fiduciary duties and can have devastating financial consequences for the beneficiaries.

Trustees have a legal obligation to act in the best interests of the beneficiaries when managing and distributing trust assets. Unfortunately, when a trustee fails to uphold these duties, it can lead to theft, misappropriation of funds, or other fraudulent activities. 

We specialize in representing clients who have been victims of trustee theft, mismanagement, or breach of fiduciary duty. Our San Jose estate fraud attorneys work tirelessly to uncover evidence of trustee misconduct and help victims recover stolen inheritance, protect their trusts, and prevent trust embezzlement in the future. 

Examples of trustee theft or misappropriation include:

Unauthorized Withdrawals or Transfers

The trustee withdraws money or transfers assets from the trust to their personal account without authorization.

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Self-Dealing

The trustee uses trust assets for their personal benefit, such as making questionable loans to themselves or purchasing property at below-market rates.

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Falsifying Documents

The trustee forges signatures or falsifies financial records to cover up theft or mismanagement of trust assets.

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Failure to Distribute Asset

The trustee unlawfully retains trust assets or delays distributions to beneficiaries, even though the trust mandates it.

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Fraudulent Transactions

The trustee engages in fraudulent transactions, such as selling trust property at undervalued prices to a friend or relative for personal gain.

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Ambiguous or Vague Terms

If the terms of the trust are unclear or ambiguous, beneficiaries may dispute how assets should be distributed. In such cases, trust litigation may be necessary to clarify the trust’s intent.
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Several warning signs could indicate a trustee violating the trust by stealing or mismanaging trust funds:

Sudden Changes in Trust Accounts

If there are unexpected withdrawals or transfers of money, it may be a sign that the trustee is misappropriating funds.

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Lack of Transparency

The trustee becomes evasive or uncooperative when asked for information about trust accounts or financial reports.

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Unexplained Losses or Discrepancies

If the trust assets appear to have diminished without explanation, this could indicate that the trustee is stealing from the trust.

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Delays in Distributing Assets

If the trustee is delaying or avoiding making distributions to beneficiaries, especially when the trust document specifies when and how assets should be distributed, theft may be involved.

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Trustee Living Beyond Their Means

If the trustee is living a lifestyle that seems inconsistent with their income or financial standing, it could be a sign of theft or misuse of trust assets.

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For additional information about Ferguson Law Group’s Trustee Theft services,
please contact: 408-296-3700

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