How Do You Remove a Trustee in California? Los Angeles Trusts Attorney Explains this below.
Our lawyers represent beneficiaries and trustees in cases involving cases where the goal is to remove a trustee in California. There are a variety of instruments that can be used in an estate plan to help make sure that your wishes for the future and financial security for your family are seen to after you are gone. Trusts can be an excellent tool in this capacity, and can be specifically tailored to all types of situations, ranging from simple transfer of liquid funds to special collections. One thing that all trusts have in common, however, is that they must name a trustee. A trustee is the person responsible for managing the assets inside the trust and making distributions in accordance with the provisions in the trust document. The trustee owes a high duty of care in fulfilling his or her duties. There are some unfortunate cases in which the trustee is not fulfilling his duties and may need to be removed.
The method of removing a trustee will vary depending on the type of trust. The most straightforward process is when the trust is a revocable trust. In such a case, the settlor (i.e. the person who created the revocable trust) can simply revoke or amend the trust and name a new trustee. The process is less straightforward when the trust is irrevocable. Where the trust is irrevocable, the beneficiary or other person with a direct interest must seek intervention from the court by filing a petition requesting that the trustee be removed. California probate code § 15642 provides a variety of reasons why a trustee may be removed. These reasons include the trustee declining or failing to act, excessive compensation, or breach of trust. A trustee may also be removed where he or she has become insolvent or is otherwise unfit to continue to serve in his or her capacity. The beneficiary must state the reasons he or she seeks removal in the petition and the petition must be served upon the trustee, as well as any other interested parties. The court will have a hearing where the beneficiary will need to produce evidence of the trustee’s unsuitability or wrongdoing. The trustee will have the opportunity to present evidence controverting the beneficiary’s claims. The court will then determine if it is appropriate for the trustee to continue on or if a new trustee needs to be appointed.
Our specialist Los Angeles attorney has over 26 yers of experience helping our clients with all types of trust and probate issues, including actions to remove a trustee. Contact us today to talk about your questions regarding estate planning.
