Key Takeaways

• California trustees and executors owe fiduciary duties to all beneficiaries under Probate Code sections 16000 through 16504 (trustees) and Probate Code section 9600 and following sections (executors), including duties of loyalty, impartiality, and avoidance of self-dealing.
• A trustee who wrongfully takes trust property — including selling property below market value or keeping proceeds — can be liable for double damages under Probate Code section 859, plus reasonable attorney’s fees in the court’s discretion.
• California Probate Code section 850 allows beneficiaries to bring a court petition for property believed to belong to a decedent or trust; section 17200 provides similar mechanisms for internal trust disputes.
• Code of Civil Procedure section 366.2 imposes a hard one-year deadline (running from the decedent’s date of death) on claims against the decedent — including many family property disputes — making early consultation essential.
• Sibling property disputes often combine multiple legal theories — breach of fiduciary duty, conversion, constructive trust, partition — with the right combination depending on title status, the trustee’s conduct, and the specific harm.

Sibling and Family Property Disputes in California: What You Can Do Legally

Family property disputes are some of the most painful real estate cases. A parent dies and one sibling becomes trustee or executor. The trust says the property should be sold and the proceeds split equally. Months pass. The trustee sibling moves in. Then sells “to themselves” at a price the other siblings learn was below market. The trustee retains a friendly attorney who advises that the documents “speak for themselves.” Meanwhile, the clock on legal remedies is ticking.

California has substantial law in this area, and the remedies are real. This article walks through what beneficiaries can do, the deadlines that matter, and where the strongest claims usually sit.

Watching a sibling mishandle family real estate? Move quickly.

Bay Legal, PC pursues California breach of fiduciary duty, trust, and family property claims. Call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

Fiduciary duties of trustees and executors

California trustees owe a long list of fiduciary duties under Probate Code sections 16000 through 16504:

• Duty of loyalty (section 16002) — administer the trust solely in the interest of the beneficiaries.
• Duty of impartiality (section 16003) — when there are multiple beneficiaries, treat them impartially in light of the trust’s purposes.
• Duty not to self-deal (section 16004) — avoid transactions in which the trustee has a personal interest.
• Duty to administer the trust in good faith and according to its terms (section 16000).
• Duty to provide information to beneficiaries (section 16060), including the section 16061.7 notice within 60 days of the death of the settlor.
• Duty to account (section 16062 and following sections).
• Duty to control and preserve trust property (sections 16006 and 16007).
• Duty to make trust property productive (section 16007).

Executors of decedents’ estates owe comparable duties under Probate Code section 9600 and following sections. Personal representatives must act with reasonable care, prudence, and skill, and they cannot use estate property for personal benefit.

Probate Code section 859: double damages and fees

California Probate Code section 859 provides for substantial penalties when someone wrongfully takes or retains property belonging to a decedent or a trust. The statutory language imposes liability for “twice the value of the property recovered by an action under this part” plus, in the court’s discretion, reasonable attorney’s fees and costs.

Section 859 applies in a range of family property contexts:

• A trustee who diverts trust property to themselves.
• A family member who takes assets from a vulnerable elder in bad faith.
• A sibling who refuses to return property properly belonging to the estate.
• A person who acts in bad faith in retaining property belonging to a trust.

There is a real appellate split. California Courts of Appeal disagree on whether bad faith must be separately shown when elder abuse is the predicate offense. Keading v. Keading (2021) 60 Cal.App.5th 1115 held that bad faith does not need to be separately shown when the underlying claim is elder financial abuse; Levin v. Winston-Levin (2019) 39 Cal.App.5th 1025 reached the opposite conclusion when the elder abuse rests on undue influence. The California Supreme Court has not resolved the split. A California trust litigation attorney can evaluate how this affects your specific facts.

Whether double damages or attorney’s fees are available in any given case depends on the specific facts and the developing case law. Outcomes are not guaranteed; talk to a California trust litigation attorney about your situation.

Section 850 and section 17200 petitions

California Probate Code section 850 provides a streamlined court procedure for asserting claims to property believed to belong to a decedent or trust. Section 850 petitions can:

• Bring property into a trust that was not properly transferred during the settlor’s lifetime (a Heggstad petition).
• Recover property wrongfully held by a non-fiduciary.
• Address competing claims to property between trusts, estates, and individuals.
• Support claims for double damages under Probate Code section 859.

California Probate Code section 17200 provides similar internal trust mechanisms — beneficiaries can petition the court to compel an accounting, remove a trustee, instruct the trustee on duties, settle accounts, modify or terminate the trust in some circumstances, and address other questions about the internal affairs of the trust. Section 17200 petitions are often the first formal step when a beneficiary cannot get information or cooperation from a trustee.

The one-year deadline under CCP section 366.2

California Code of Civil Procedure section 366.2 imposes a hard one-year statute of limitations on most claims against a decedent. The statute provides that when a person dies before the expiration of an otherwise applicable limitations period, an action may be commenced within one year after the date of death, and the limitations period that would otherwise have applied does not apply.

This bar is widely misunderstood and frequently fatal to family property claims. Section 366.2 can foreclose claims that would otherwise have multi-year statutes of limitation. The exceptions are narrow — primarily for claims pursued through the probate creditor claim process or for claims that survive under specific Probate Code provisions.

One year goes faster than you expect. If your sibling property dispute involves a decedent’s actions before death — undue influence, financial elder abuse, breach of fiduciary duty as a trustee or attorney-in-fact — the clock is one year from the death, regardless of when you learned about the conduct. Talk to an attorney early.

Death in the family, and the family real estate doesn’t add up?

Bay Legal, PC handles California trust contests and family property disputes. Call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

How to prove breach of fiduciary duty

Successful breach of fiduciary duty cases in California family property disputes typically combine:

• Documentary evidence of the trustee’s conduct — bank statements, contracts, communications, settlement statements.
• Trust or will language showing what the trustee was supposed to do (and did not).
• Independent appraisals showing fair market value of the property and the gap between fair market value and the trustee’s sale price (if a below-market sale is at issue).
• Records of the trustee’s accountings (or the absence of them).
• Communications between the trustee and beneficiaries showing concealment or misrepresentation.
• Witness testimony from third parties — agents, brokers, contractors, family members.
• Expert testimony on trustee standard of care.

Demand letter as a first step

Many California family property disputes start with a formal demand letter from a beneficiary’s attorney to the trustee. A well-drafted demand letter typically:

• Sets out the trustee’s duties and the beneficiary’s expectations.
• Identifies specific facts suggesting breach of those duties.
• Requests a full accounting, copies of trust documents and amendments, and disclosure of property transactions.
• Sets a deadline for response.
• Preserves rights to pursue formal litigation if voluntary cooperation is not forthcoming.

Demand letters often produce voluntary cooperation, particularly when the trustee’s attorney recognizes the strength of the beneficiary’s position. When they do not, the next step is typically a section 17200 petition or a section 850 petition.

Common scenarios in California sibling property disputes

The trustee sibling sells the family home below market

A trustee owes a duty to sell trust property at fair market value, not at favorable prices to family members or friends. A below-market sale typically supports breach of fiduciary duty claims and may support Probate Code section 859 double damages if bad faith can be shown.

The trustee sibling refuses to sell or account

California Probate Code sections 16060–16062 require trustees to provide information and accountings to beneficiaries. A beneficiary can compel an accounting through a section 17200 petition; persistent failure can support removal of the trustee under section 15642.

Pre-death undue influence on a parent

Where one sibling appears to have influenced a parent’s late-life trust amendments or gifts, the claim is typically undue influence, financial elder abuse, or breach of fiduciary duty by a person in a confidential relationship. These claims face the one-year section 366.2 bar from the date of death, making prompt action essential.

Disputes over partition or shared ownership

When siblings own the family home as tenants in common (rather than through a trust), the dispute often resolves through a partition action — see the partition pillar piece for the full framework. The substantive accounting issues overlap with trust-based disputes.

Need a clear-eyed assessment of a family property dispute?

Bay Legal, PC handles California trust, estate, and family property litigation. Call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

Frequently Asked Questions

What are your rights when a sibling controls a family property and excludes you?

Your rights depend on the form of ownership. If you are a beneficiary of a trust, you have rights under Probate Code sections 16060 and following sections to information and accountings, and you can seek court relief through section 17200 petitions. If you are a tenant in common, you have partition rights under Code of Civil Procedure section 872.210.

Can a trustee or executor be sued for selling inherited property and keeping the proceeds?

Yes. Trustees and executors who self-deal or fail to distribute property as required face breach of fiduciary duty claims and, where bad faith can be shown, Probate Code section 859 double damages and attorney’s fees.

How do you sue for breach of fiduciary duty in a California family property matter?

Typically through a Probate Code section 17200 petition (for trust matters), a section 850 petition (for property claims), and where appropriate a separate civil action for breach of fiduciary duty and related claims. Many cases combine these procedures. A California trust litigation attorney can structure the right combination.

What is the statute of limitations for trust fraud in California?

It depends on the theory and timing. Fraud claims generally run three years from discovery under Code of Civil Procedure section 338(d). But Code of Civil Procedure section 366.2 imposes a hard one-year deadline from the decedent’s date of death on most claims against a decedent — regardless of when the wrongdoing is discovered. Early consultation is essential.

How does a demand letter work as a first step before filing a lawsuit?

A demand letter from a beneficiary’s attorney to the trustee or executor formally raises the issues, demands information or accountings, and sets a deadline. It often produces voluntary cooperation when the trustee recognizes the strength of the beneficiary’s position. When it does not, the next step is usually a section 17200 or section 850 petition.

Disclaimer

This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Reading this article and contacting Bay Legal, PC does not create an attorney-client relationship. The information here is specific to California law, which changes over time, and your situation may involve facts that change the analysis. If you have a real estate question that matters to you, speak with a licensed California attorney about your specific circumstances.