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What to do if a family member is the trustee of an estate and they are not acting appropriately (California Law)

Posted by James Burns | Oct 03, 2023 | 0 Comments

If you have a family member who is the trustee of an estate and you believe that they are not acting appropriately, there are a few things you can do.

First, it is important to understand what a trustee is and what their duties are. A trustee is a person who is responsible for managing the assets of a trust for the benefit of the beneficiaries. The trustee has a fiduciary duty to the beneficiaries, which means that they must act in the best interests of the beneficiaries and avoid any conflicts of interest.

If you believe that the trustee is not acting appropriately, you should first try to communicate with them directly. You should explain your concerns and ask them to change their behavior. If the trustee is unwilling to change their behavior, you may need to take further action.

Here are some of the legal options that you may have:

  • You can file a petition with the probate court to remove the trustee. The probate court has the power to remove a trustee if it finds that the trustee has breached their fiduciary duty or is otherwise unfit to serve as trustee.
  • You can file a lawsuit against the trustee for breach of fiduciary duty. If you are successful in your lawsuit, you may be able to recover damages from the trustee.
  • You can ask the probate court to appoint a co-trustee or successor trustee. A co-trustee or successor trustee can help to ensure that the trust assets are managed properly.

If you are considering taking any of these legal actions, it is important to consult with an experienced estate planning attorney. An attorney can help you to understand your legal options and represent you in court if necessary.

California Probate Code grounds for removal of a trustee

The California Probate Code provides a number of grounds for removal of a trustee. Some of the most common grounds for removal include:

  • Breach of fiduciary duty. California Probate Code section 15642(b)(1). A trustee can be removed if they breach their fiduciary duty to the beneficiaries. This can include things like self-dealing, misappropriation of trust assets, or failure to manage the trust assets properly.
  • Incompetence. California Probate Code section 15642(b)(2). A trustee can be removed if they are incompetent to manage the trust assets. This can include things like mental illness, substance abuse, or physical incapacity.
  • Conflict of interest. California Probate Code section 15642(b)(6). A trustee can be removed if they have a conflict of interest. This can include things like having a personal financial interest in the trust assets or being related to a beneficiary.
  • Unfitness. California Probate Code section 15642(b)(9). A trustee can be removed if they are unfit to serve as trustee. This can include things like having a criminal record or being dishonest.

Please note that these are just some of the grounds for the removal of a trustee. There may be other grounds for removal that are not listed here. If you have any questions about whether or not you can have a trustee removed, you should consult with an experienced estate planning attorney.

If you believe that your family member is the trustee of an estate and they are not acting appropriately, you should contact an experienced estate planning attorney to discuss your legal options.

About the Author

James Burns

James Burns, Esq. is a seasoned attorney specializing in estate planning, asset protection, and tax law. Known for his expertise in Private Placement Life Insurance (PPLI), James helps high-net-worth individuals protect their wealth and achieve tax efficiency, including pre-immigration planning. With over 20 years of legal experience, he offers tailored solutions for estate planning and corporate transactions. James is also a published author and sought-after speaker, recognized for his deep knowledge and strategic approach to wealth preservation.

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