Can a Trustee Be Removed?

Yes, a trustee can be removed — either voluntarily, by agreement among the parties, or by court order. The grounds for removal, the process involved, and who has standing to petition all depend on the trust document and state law.

Grounds for Removing a Trustee

Breach of fiduciary duty — a trustee must act in the best interests of the beneficiaries, not their own interest. This covers self-dealing, conflicts of interest, and failure to prudently invest trust assets. It is the most common basis for removal.

Mismanagement of trust assets — poor investment decisions, failure to diversify, or neglecting trust property.

Failure to provide accountings — trustees must provide regular accountings to beneficiaries. Repeated failure is grounds for removal.

Self-dealing and conflicts of interest — transactions that benefit the trustee at the trust's expense violate fiduciary duty.

Theft or fraud — outright theft of trust assets is grounds for immediate removal and potential criminal liability.

Incapacity — if a trustee becomes mentally or physically unable to manage the trust, removal is appropriate.

Irreconcilable conflict — courts will sometimes remove a trustee when the relationship with beneficiaries has broken down so completely that effective trust administration is impossible.

Who Can Petition to Remove a Trustee

Beneficiaries have standing to petition the court. Co-trustees may also petition for removal of a fellow trustee. In some circumstances the grantor of a living trust may remove the trustee if the trust document permits it.

What Happens After Removal

The court appoints a successor trustee — typically one named in the trust document, or a professional trustee if named successors are unavailable. The removed trustee may be ordered to provide a final accounting, return improperly taken assets, and pay damages for losses caused by their conduct.