Trustees have a duty to act in good faith, follow the terms of the trust, and protect the interests of the beneficiaries. When trustees fail to uphold their fiduciary duties—whether through negligence, misconduct, or self-dealing—beneficiaries may pursue legal action to remove the trustee. This post will discuss when and how a trustee can be removed if they are not fulfilling their responsibilities to the trust, estate, and beneficiaries.
Reasons a Trustee Can Be Removed
A trustee can be removed if they have breached their fiduciary duty to the trust, estate, and beneficiaries (California Probate Code §15642). Common examples include:
- Violation of Trust Terms. As per California Probate Code §15640, a trustee who fails to administer the trust according to its terms may be removed by the Court. For example, if a trustee refuses to disburse funds as directed by the trust, they may be committing a breach of their fiduciary duties by violating the terms of the trust (California Probate Code Section 16000).
- Mismanagement of Trust Assets. A trustee who mismanages trust assets, whether through negligence or intentional misconduct, may be subject to removal as trustee. Mismanagement of trust assets can include selling trust property below market value, engaging in self-dealing to benefit themselves, or misappropriating the funds.
- Failing to Provide Beneficiaries with an Accounting: Beneficiaries have the right to receive a formal accounting of trust assets and transactions. Under California Probate Code Sections 16062-16063, a trustee must provide this accounting within sixty (60) days of a formal request. If a trustee is constantly breaching their fiduciary duty, you may consider requesting that the Court intervene.
How Can I Remove a Trustee?
If a Trustee has failed to uphold their fiduciary duties as required by the trust instrument and California Probate Code, beneficiaries may have the right to file a Petition for Breach of Fiduciary Duty with the California Superior Court. The California Superior Court has the authority to:
- remove a trustee,
- appoint a successor trustee,
- and appoint a neutral third-party fiduciary as trustee.
If the beneficiaries’ interests in the trust are at risk, beneficiaries may additionally be able to bring an Ex Parte Petition for Temporary Trustee Suspension that asks the Court to temporarily suspend the trustee while litigation is pending (California Probate Code §15642(e)).
A Petition must establish the valid grounds for removal of a trustee. An experienced probate and trust litigation attorney may be able to assist you with reviewing trust documents, gathering supporting documentation, and prepare a petition to request that the Court remove a trustee.
Looking Ahead
When trustees breach their fiduciary duty, beneficiaries have the right to seek their removal and potentially surcharge them for losses caused by their misconduct. Removing a trustee may be the best route to ensure that the trust assets are handled correctly and diligently.
To address your probate and trust litigation related concerns, feel free to reach out to our team today. You may call or text directly to (559) 431-4888 or (619) 399-7700 or send a message via email to Advice@WebbLawGroup.com.