If you believe your trustee is not doing their job and you want to replace them, you will need to show proof that your trustee is not fulfilling their duties.
Here are some situations that would demonstrate that a beneficiary has cause to remove a trustee:
1. The trustee did not marshal assets properly and this led to a loss of assets.
2. The trustee did not act in the best interest of the beneficiary or acted in a way that was self-serving to the trustee.
3. The trustee failed to provide an annual accounting. Beneficiaries may ask for reports showing how trust assets are being managed and distributed. They always have the right to be kept reasonably informed about the assets being managed for their benefit.
4. The trustee did not invest prudently. Funds were not invested or were invested in vehicles not appropriate for a trust.
5. There has been a lack of records or organization.
6. Liabilities and taxes of the trust were not paid, leading to penalties and interest.
7. The trustee behaved in a secretive, condescending or defensive manner.
8. The trustee played “favorites” with beneficiaries.
9. The trustee failed to make distributions in a timely manner.
10. The trustee did not follow the terms of the trust document.
11. The trustee paid themselves more than what was allowed by the trust document.
12. The trustee did not obtain proper authorizations for actions by the beneficiaries or the court, if the trust is silent on an important manner.
Lack of communication causes many conflicts between beneficiaries and trustees and eventually leads to litigation.
If you believe there is cause to remove your trustee, please call our office for a consultation. We partner with top level attorneys who specialize in trust litigation.