Trustee Removal for Asset Mismanagement May Be an Option
As a beneficiary, dealing with a trustee who is not acting properly is highly frustrating. Trustees who mismanage trust assets, or refuse to comply with the trust terms, can create many difficulties for beneficiaries, including wasting of trust assets. Fortunately, beneficiaries have several options at their disposal for dealing with trustees who are not fulfilling their obligations to manage the trust with the best interest of the beneficiaries in mind. One such option is to seek court intervention for order of the trustee removal.
6 Steps to Consider for Trustee Removal
If you are interested in pursuing involvement in the court system for trustee removal, your first step should be to contact an experienced attorney who can guide you through the process. Next, consider the following:
- First of all, review the reasons outlined in the trust document for removing a trustee.
- Consider whether you have enough evidence to support a claim that the trustee has committed a breach of trust.
- Additionally, ask yourself: Is the trustee insolvent?
- Furthermore, if there are co-trustees, consider whether they are getting along.
- Also, consider whether the trustee is unfit to administer the trust.
- Lastly, is the trustee paying himself excessive compensation?
Trustees who mismanage, embezzle, or waste the assets of the trust can be removed with the involvement of the probate court. Another option that you may wish to consider is the temporary suspension of the trustee.
- Beneficiary (noun): A person who benefits from a trust, will, or life insurance policy. This includes heir, heiress, inheritor, legatee; recipient, receiver, payee, donee, assignee; devisee, grantee.
- Co-Trustees (noun): Co-trustees are a person or organization that has been given responsibility for managing someone else’s property or money through a trust along with another person or organization. There are different types of trusts, including Totten Trusts, Special Needs Trusts, Testamentary Trusts, Living Trusts, and many others. The type of trust will determine the exact actions a Trustee must take in order to perform their job.
If you are ready to start your case, then please give us a call or fill out our Get Help Now form. A comprehensive overview of California Probate is available here. Should you have additional questions about trust litigation, you will find plenty of useful information in our Learning Center.