In the trust legal arrangement, trustees are given the right to hold the trustor’s (creator of the trust) property or assets for the benefit of the trust beneficiaries. Trustees take on the legal ownership of these assets but do so with the fiduciary responsibility to manage them per the trust’s terms and for the beneficiaries’ advantage.
The duties of a trustee include prudently managing the trust’s assets, maintaining clear and accurate records, acting impartially towards beneficiaries, and always adhering to the trust’s terms and purpose. The trustee’s role as a fiduciary demands the highest standard of care and utmost good faith in all dealings pertaining to the trust.
When disputes arise between trustees and beneficiaries or other interested parties, they may lead to the necessity of removing a trustee from trust management. This process can be complex, requiring legal representation to represent your case.
At OC Trial Group, we focus much of our practice on issues related to trusts and estates. We can provide the legal help you need, whether seeking or contesting a trust removal. Our legal team is highly experienced in all aspects of California trust administration and litigation in the local courts.
Contact us online to book a free initial consultation with an Orange County trust removal attorney.
Trustee Removals in Orange County, CA
Fiduciary duty forms the basis of the relationship of trustees to beneficiaries. The trustee’s role requires careful management of the trust assets, ensuring that the trust provisions are followed accurately and that beneficiaries’ interests are prioritized over the trustee’s personal gains.
In a trustee removal case, the trust’s beneficiaries usually seek such a removal. However, a co-trustee or even the settlor (creator) of the trust, if still living, might also have standing to request removal under certain circumstances.
Trust Removal Issues
Beneficiaries may seek the removal of a trustee for various issues that suggest the trustee is unfit to administer the trust properly.
Examples of such issues include:
- Misappropriation of funds: If a trustee is found to be using trust assets for personal benefit, beneficiaries have clear grounds to request removal. For instance, a trustee might sell trust property below market value to a family member, which constitutes self-dealing.
- Lack of transparency: Beneficiaries are entitled to regular accounting and updates about the trust’s activities. A trustee who fails to provide these can be removed for lack of transparency. An example is when a trustee does not disclose the trust’s financial statements or fails to inform the beneficiaries about significant actions taken.
- Poor investment decisions: Trustees are expected to invest trust assets prudently. Investments that result in significant losses due to negligence or high-risk ventures could lead to the trustee’s removal. For example, placing a disproportionate amount of the trust’s assets in speculative stocks that crash would be considered irresponsible management.
- Failure to comply with the trust terms: Beneficiaries may also seek removal if the trustee does not adhere to the specific requirements set out by the trust. An example might be a trustee who distributes assets to beneficiaries in a manner not stipulated by the trust document.
- Conflict of interest: A trustee should always act in the best interests of the beneficiaries. If a trustee enters into transactions that benefit them at the expense of the trust, such as purchasing trust property for personal use at an undervalued price, this would be a conflict of interest.
Each example demonstrates a failure to uphold the trustee’s fiduciary duty, harming the trust’s intended purpose and potentially jeopardizing the beneficiaries’ interests.
Procedure for Trustee Removal
Removing a trustee typically involves an interested party’s petition to the court. The court then reviews the case, considering the reasons for removal and ensuring they meet the legal requirements to justify such action. Complexities in trust law and individual trust language often require skilled legal guidance through this process.
How Our Firm Can Help
At OC Trial Group, we have extensive experience assisting clients in both seeking and contesting trustee removals. We can provide counsel to navigate the intricate legal landscape surrounding trusts. Our team will review the situation, represent your interests in court, and work toward a resolution that honors the trust’s intent and protects the beneficiaries’ rights.
Should you require more information on trustee removal or need assistance in a related matter, please do not hesitate to reach out to us at OC Trial Group, where we are committed to delivering excellence and clarity in trust and estate litigation.
Use our convenient online contact form or call (949) 270-3424 to arrange to speak with one of our Orange County trust removal attorneys about your case.