The Most Common Grounds for Removing an Estate Trustee

 Posted on December 13, 2024 in Estate Planning

When a person is creating a trust meant to be used for distributing his or her assets after death, one of the most important tasks is choosing a trustee. A trustee should be someone the trust creator believes will faithfully carry out his or her wishes while managing the trust funds responsibly. Unfortunately, sometimes, a trustor’s faith is misplaced, and the trustee begins mishandling the trust or failing to act in the best interests of the beneficiaries after the trustor has died. If you are a trust beneficiary and have serious doubts about the trustee’s conduct or abilities, a San Antonio, TX fiduciary litigation attorney can help you take action.

Causing a Material Financial Loss to the Trust 

If a trustee violates the terms of the trust and causes the trust to lose money, he or she may be subject to removal. For example, if the terms of the trust only allow standard low-risk investing techniques and the trustee loses a lot of trust funds on a very risky investment in a new business, he or she can likely be removed.

The Trustee is Unable to Perform His or Her Duties 

If the trustee becomes incapacitated in a way that interferes with carrying out his or her duty to the trust, you, as a beneficiary, may choose to remove the trustee. This is common when the decedent who created the trust chose a friend who was close in age. For example, if your elderly father chose a friend who is also quite elderly, you may need to remove the trustee if he begins experiencing symptoms of Alzheimer’s and is no longer capable of fulfilling his trustee duties.

You may also be able to remove a trustee who has become financially insolvent. If the trustee managing your loved one’s trust has just declared bankruptcy, he or she may not be the best person to manage trust funds on your behalf.

Failing to Keep a Detailed Accounting of Trust Funds 

A trustee is required to keep a detailed accounting of the trust’s finances. If the trustee has failed to keep accounting logs as required by law or by the terms set out in the trust instrument, the trustee can be removed. You, as a beneficiary, have the right to know what the trust money is being used for and where it is going.

Contact a San Antonio, TX Trust Litigation Attorney

The Law Office of Ryan C. Moe, PLLC is committed to protecting trust beneficiaries who are dealing with an unfaithful trustee. Our dedicated Bexar County, TX beneficiary representation lawyers will do all we can to help you remove a trustee who is no longer performing his or her duties well. Contact us at 210-861-6000 for a confidential consultation.