AI and Trustee Duties and Obligations

Artificial intelligence (“AI”) is becoming increasingly integrated in all aspects of law, and while the benefits of AI can be easily identified, potential pitfalls may be more difficult to anticipate. While there are no recent court decisions regarding AI standards as applied to trustee management, or the execution of trustee fiduciary duties, traditional trustee statutory obligations and fiduciary duties under California law remain.

Under California Probate Code, among other duties, a trustee must administer the trust solely in the interest of the beneficiaries, take reasonable steps under the circumstances to take, keep control of, and preserve the trust property, keep the beneficiaries of the trust reasonably informed of the trust and its administration, and administer the trust with reasonable care, skill, and caution under the circumstances then prevailing. (Starr v. Ashbrook, (2023) 87 Cal.App.5^th 999; Cal. Probate Code, §16002, §16006, and §16060)

Accordingly, the use of AI in making administrative, investment, or legal decisions would be assessed under these traditional standards and in a trustee scenario for example, decisions made for the benefit of the trust that rely on AI research may be subject to scrutiny and could potentially expose a trustee to personal financial liability. Additional concerns also arise when sensitive trust or client data is inputted into public AI tools.

Some guidance may be found in recent California court decisions that have addressed the use of AI by legal counsel. These decisions acknowledge the use of AI but emphasize that attorneys remain bound by traditional competence, professional, and ethical obligations. (Noland v. Land of the Free, L.P., (2025) 114 Cal.App.5^th 426; Quinteros c. Harbor Distributing, LLC, (2026) 121 Cal.App.5^th 60). Ultimately, attorneys must personally verify legal authority and evaluate all AI generated output before submitting it to a court. (Id.) Even more, this responsibility cannot be delegated. (Id.)

While much remains unknown and untested in the emerging world of AI, one thing is certain, the well-established trust administration obligations and duties will remain at the forefront.