Reasons For Trustee Removal
First of all, you need to know that starting a trust is something that comes with very many benefits. The person who is in charge of managing a trust on behalf of the beneficiaries is often referred to as a trustee. In almost all the situations, the trustee ensures that he or she manages the trust in the right way and in the best interest of the beneficiaries.
However, there comes time when trustees have to be removed. The courts today allow the removal of a trustee under specific conditions. People who would want to remove a trustee from power are usually advised to seek legal assistance from the services of a very qualified attorney. The following article seeks to educate people on the factors that could lead to the removal of a trustee.
One reason for removing a trustee is when he or she fails to comply with the terms of the trust. You need to be aware of the fact that when a trustee fails to comply with the terms of the trust, then this becomes the major reason as to why he or she should be removed. The creator of the trust, usually referred to as the trustor is the one that comes up with the terms that guide the trust that should be abided by the trustee simply for the sole benefit to the beneficiary. It is vital to acknowledge the fact that trustees should be removed from managing the trust if it happens that he or she ignores the terms that were created to manage the fund.
The second reason for the removal of a trustee is mismanagement or neglect of the trust assets. It is vital to acknowledge the fact that trustees are supposed to manage the assets of the trust in such a way that it eventually benefits both the beneficiaries and the other trustees. A trustee should be able to sell and buy assets on behalf of the trust, make distributions to the beneficiaries and make sound investments. In case the trustee fails at managing the assets of the trust properly or simply neglects his duties, then the beneficiaries could file for a petition for trustee removal.
Eventually, the trustee could be removed if he or she is self dealing. This means that if the trustee is self dealing when it comes to the management of the assets of the trust, then he could be removed. The kinds of trustees that should face removal by the beneficiaries of a trust are those that would use the knowledge and the assets of the trust so that they would benefit from their position of being a trustee.