⚖️ Why a Bad Trustee Would Not be Entitled to Trustee Fees?

Forfeiting Trustee Fees

If the Bad Trustee is facing potential surcharge and documented breaches of fiduciary duty, his claim to trustee fees is almost certainly dead in the water — and trying to push for them could backfire badly.

Here’s why:

1. Legal Rule

Under California Probate Code §16440(b), if a trustee breaches fiduciary duty, the court can deny or reduce trustee compensation entirely.

  • Courts see trustee fees as payment for loyal and prudent service.

  • If the trustee acted in bad faith, mismanaged funds, or engaged in self-dealing, the court often awards zero.

2. How Your Attorney Will Counter

If the Bad Trustee asks for trustee fees, the Good Beneficiary Attorney can respond:

  • “You can’t get paid for mismanaging the trust.”

  • Present the surcharge chart with exhibit references.

  • Cite Probate Code and cases like Estate of Gump (1991) where trustees lost all fees due to misconduct.

3. Risk to the Bad Trustee

  • Fees could be denied outright due to proven breach of duty.

  • The judge may even order repayment of any trustee fees already taken if they were collected during the misconduct.

  • It makes them look greedy and out of touch with the severity of the allegations.

4. Strategic Move for You

  • If the Bad Trustee insists on asking for fees, don’t object too early — let them put it in writing first.

  • Once it’s in the record, the Good Beneficiary Attorney can shred it with side-by-side comparison:

    • “Services claimed” vs. “Damages caused”

    • Net benefit to trust: negative