Trusts are often created to protect and distribute assets for family members, charities or others with specific intentions in mind. A person appointed to oversee a trust plays a crucial role in making sure these goals are respected. However, not every trustee performs their job as expected.
If a trustee’s actions harm the trust or create unnecessary tension, beneficiaries may consider removal. In some cases, trust litigation may become necessary to protect the assets and better ensure the trust is managed properly.
Failure to follow trust instructions
A trustee is expected to carry out the terms of the trust exactly as written. When they ignore specific provisions or fail to act in a timely manner, it undermines the entire purpose of the trust. This failure may delay distributions or result in decisions that do not reflect the creator’s wishes.
Poor management of trust assets
Trustees are responsible for preserving and growing the trust’s value. If a trustee makes reckless investments, ignores required maintenance of property or fails to keep accurate records, they may be mismanaging the trust. These actions can result in financial losses that harm the beneficiaries.
Using trust assets for personal gain
A trustee is not allowed to profit from the trust unless the terms explicitly allow it. When a trustee uses trust funds for personal expenses or makes decisions that benefit themselves over the beneficiaries, they breach their fiduciary duty. This form of self-dealing is a common reason for trustee removal.
Ongoing conflict with beneficiaries
While disagreements can occur, continuous hostility between a trustee and the beneficiaries can create a breakdown in trust administration. If communication is strained and cooperation becomes impossible, the situation may call for a change in trustees to restore stability.
When trust problems begin affecting distributions or asset management, it may be time to consider trust litigation. Obtaining legal guidance can help beneficiaries protect their interests and pursue the removal of a trustee when necessary.