A trustee has been acting shady, can I seek their removal?

On Behalf of | Aug 16, 2024 | Trust Administration

Whoever takes on the role of trustee can make or break an estate plan. This person will manage and distribute the trust’s assets according to the grantor’s wishes.

But what happens if you start to doubt a trustee’s abilities or intentions? You may even want to strip them of their responsibility in this situation. While there’s no one-size-fits-all answer, understanding the process can help you make intelligent decisions about your trust.

Trustee red flags

Before you jump to removing a trustee, knowing what to look out for is important. Here are some warning signs that might suggest your trustee may not be up to the task:

  • They are not keeping you in the loop or providing updates
  • The trust’s assets aren’t being managed well
  • They seem to be putting their interests first
  • They are neglecting their responsibilities
  • Personal issues are getting in the way of their duties

If you spot any of these red flags, it might be time to take a closer look at your options. Spotting problems early on could spare you from headaches down the road.

Removal may depend on the trust

Taking a trustee out of the picture may not be so simple. The process can change based on your trust’s setup and rules. Here’s what you need to consider:

  • What the trust document says about the removal
  • Oregon’s laws on trusts and trustee removal
  • Whether you’ll need to go to court
  • If you need agreement from beneficiaries or co-trustees

Some common reasons to seek the removal of a trustee include possible breaches of fiduciary duty or a lack of cooperation amongst co-trustees.

Getting a handle on these details will help you figure out your next steps and decide if removal is the right choice for your situation.

Removing a trustee is a big decision that you should not take lightly. While it is possible under certain circumstances, the process can be tricky. If you are concerned about your trustee, it’s a good idea to talk to someone who understands the intricacies of estate planning and can guide you through your options.