Is breach of trust a felony or misdemeanor?
Asked by: Eveline Koelpin | Last update: February 11, 2026Score: 5/5 (24 votes)
Breach of trust can be either a felony or a misdemeanor, depending heavily on the dollar amount of property involved and the specific jurisdiction's laws, with lower amounts often being misdemeanors (e.g., under $2,000) and higher amounts escalating to felonies (e.g., over $2,000 or $10,000), leading to significantly harsher penalties like longer prison sentences and higher fines.
Is a breach of trust a felony?
Under California law, embezzlement of trust property worth $950 or less is a misdemeanor with a maximum sentence of 6 months imprisonment. Stealing trust assets valued at over $950 is a felony offense, which can carry a jail sentence of up to 3 years.
What is the punishment for breach of trust?
It can involve imprisonment, fines, or a combination of both, depending on the severity of the offense.
What are the consequences of a breach of trust?
Failing to address a breach of trust promptly can lead to serious consequences. If left unchecked, a breach can deplete trust assets, give rise to legal disputes, cause administration delays, strain relationships and even undermine the trust's intended purpose.
What is the punishment for criminal breach of trust?
Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
Which Crime Is Essentially A Theft In Violation Of Trust? - SecurityFirstCorp.com
What are some examples of criminal breach of trust?
Breach of trust can also refer to when an owner allows someone to borrow or periodically control their property and that person steals or inappropriately uses the property. For example, a breach of trust would occur if you paid a valet to park your vehicle, and the valet drove your vehicle around the city.
What does it mean to be charged with breach of trust?
336 Every one who, being a trustee of anything for the use or benefit, whether in whole or in part, of another person, or for a public or charitable purpose, converts, with intent to defraud and in contravention of his trust, that thing or any part of it to a use that is not authorized by the trust is guilty of an ...
Is breach of trust serious?
A breach of trust occurs when a trustee contravenes the terms of the trust or the duties of a trustee. Trustees are jointly and severally liable for breach of trust to their beneficiaries where the breach has given rise to a loss.
What are some examples of a breach of trust?
Example of Breach of Trust with Fraudulent Intent
If you ask your child to get you milk and eggs from the store, but they actually use some of the money to buy candy: that's Breach of Trust. However, embezzlement of money is just one example of Breach of Trust. Breach of Trust can also be the conversion of property.
What are the three types of breaches?
There are three major types of contract breaches: a material breach, a partial breach, and a total breach. A material breach is when one of the parties has done something that results in illegal action against another party's property rights. A partial breach occurs when a contract has not been completed.
What is a felony involving dishonesty or breach of trust?
A crime involving dishonesty includes, but is not limited to, an offense constituting or involving perjury, bribery, forgery, counterfeiting, false or misleading oral or written statements, deception, fraud, theft, schemes or artifices to deceive or defraud, material misrepresentations and the failure to disclose ...
What is the difference between breach of trust and criminal breach of trust?
The distinctions between a civil breach of trust and a criminal breach of trust lie in the elements that are required to be proven. Under civil law, a breach of trust occurs when a person breaches their duty which is imposed by a trust instrument (e.g. a will), by statute, or by common law.
What damages can be recovered in a breach of trust case?
Common damages that victims can recover include:
- Unpaid benefits,
- Monetary damages,
- Lost profits,
- Unnecessary losses,
- Punitive damages,
- Any illicit gains made by the fiduciary, and.
- Other economic harms experienced by the victim.
Is breach of trust easy to prove in court?
Breach of fiduciary duty cases is very fact-intensive. To gather the evidence that you need to win your case, you should hire an experienced business attorney immediately. You do not want to risk other parties destroying or misplacing key evidence you will need to prove your claim.
What is the law for breach of trust?
When proved beyond a reasonable doubt, criminal breach of trust attracts a punishment of imprisonment for up to three years or fine, or both. Punishment for the offence has been mentioned under Section 406 of the Indian Penal Code.
Can you sue someone for breach of trust?
Under California Probate Code §15409, a court may modify or resolve unclear terms in a trust. However, even in these cases, the primary focus is usually on the trustee's conduct. Legal actions against trustees may include: Filing a Lawsuit: Initiating legal action for breach of fiduciary duty or mismanagement.
Do people normally get jail time for breach of trust charges?
When those breaches involve deceit, theft, or abuse of power, prosecutors may pursue criminal charges. In 2025, state and federal authorities are showing greater willingness to treat certain financial misconduct and betrayals of trust not just as civil disputes, but as crimes worthy of jail time.
How to prove breach of trust?
Breach of trust
- Distributes trust assets to a beneficiary who is not entitled to them under the terms of the trust document.
- Invests the trust fund in a way not permitted by their express or statutory powers of investment.
Is a breach of trust a crime?
There is nothing in the California Probate Code that imposes criminal liability against a Trustee. Think about that for a moment. If a Trustee refuses to distribute your Trust assets to you, there's a remedy for that. The court will compel the Trustee to make a distribution.
What is the penalty for breach of trust?
Penalties for Breach of Trust
Removal/Replacement of Trustee: The judge may remove the trustee from their position or replace them with someone else. Surcharge: The court may order a reduction in the amount of the trustee's fee or their share of the inheritance if they're also a beneficiary.
What is the time limit for breach of trust?
In summary, section 21 of the Limitation Act 1980 provides that generally the limitation period for breach of trust is six years from the date of breach.
What are the defense of a breach of trust?
The most simple defence that a trustee can raise to a claim for a breach of trust is that the claim itself has no merit, eg that there had been no breach or that there was a breach but no loss resulted. Also, the claimant may be entirely unable to prove a link between the alleged breach and loss.
What's it called when you are in charge of a trust?
A trustee is responsible for oversight and management of a trust to ensure that the trust agreement is followed. A trust can be established by someone while they are alive for the benefit of another, in which case they must name the trustee and fund the trust.
What does breach of trust mean legally?
A breach of trust case is a legal action brought by a beneficiary (or co-trustee) against a trustee for failing to act properly in their role. These cases may involve claims of mismanagement, fraud, unauthorised asset use, or other fiduciary failures.
What is a legal notice for breach of trust?
A Legal Notice for Breach of Trust formally informs the accused party about their violation of fiduciary duties and demands rectification or compensation before initiating legal proceedings.