Trusts are created for various reasons, but they all have the same basic structure. Someone (the grantor) places assets into the trust to be managed by a neutral third party (trustee) for the benefit of another (beneficiary).
If you are a beneficiary, there may come a time when you feel the trustee is not performing their job duties. If so, what are your options? Can you fire them?
The legalities of removing a trustee
There are several legitimate reasons why a beneficiary may want to remove a trustee, such as:
- Breach of fiduciary duty, which occurs when the trustee fails to act in the best interests of the beneficiary
- The trustee is mentally or physically incapacitated and is no longer capable of performing their duties.
- There is a conflict of interest
- Poor management of trust assets, such as making bad investments
- Lack of communication regarding the trust’s status
There are several steps involved in removing a trustee in California:
1. A petition for trustee removal must be filed with the probate court. The petition should clearly state the reasons for removal and provide evidence to support the claims.
2. All interested parties, including the trustee and other beneficiaries, must be notified of the petition.
3. The court will schedule a hearing where both sides can present their evidence and arguments.
4. After obtaining and reviewing the evidence and arguments, the court will decide whether or not to remove the trustee.
Removing a trustee can be complex and contentious. It also places the burden of proof on the petitioner, meaning they must provide sufficient evidence to convince the court that the trustee’s removal is justified. Before making any decisions, it may be best to present your proof to someone who can review your case and explain your rights and options. They can best guide you on the best solution for your particular situation.