Can a Trustee can go to jail for stealing from a trust?

Trustee Embezzlement

Yes, a trustee can go to jail for stealing from a trust, but this is rare, and usually the case is handled civilly rather than criminally.If convicted of a criminal offense, a trustee could face jail time, with the severity of the sentence depending on the amount stolen. 

Here’s a more detailed explanation:
  • Criminal Charges:

    A trustee who steals from a trust can face criminal charges for embezzlement or criminal misappropriation of property. 

  • Misdemeanor vs. Felony:

    Embezzling trust assets valued at $950 or less is a misdemeanor, punishable by up to 6 months in county jail. Embezzling over $950 is a felony, which can lead to a sentence of up to 3 years in jail. 

  • Civil Remedies:

    While criminal charges are possible, most issues of trustee theft are handled civilly in probate court. 

  • Probate Court Remedies:

    In civil court, a trustee can be removed, ordered to return stolen property, and may face additional damages, such as punitive damages or attorney fees. 

  • Rare Criminal Prosecutions:

    Generally, police officers and district attorneys don’t have the resources to pursue criminal charges in these situations and consider these “crimes” civil disputes. 

  • Seeking Legal Representation:
    If you are a trustee who has been accused of theft, it’s crucial to seek legal representation as soon as possible.