Can a Trustee Remove a Beneficiary from a Trust?
Can a Trustee Remove a Beneficiary from a Trust?
Trustees have power when it comes to trusts, but more often than not, they cannot simply remove a beneficiary from a trust just because. Trustees have a fiduciary duty to the grantor and the beneficiaries. If the trustee were to go against the wishes of the grantor and trust arrangement, they’d be violating said fiduciary duty.
What is a Trustee of a Trust?
As stated above a trustee of a trust is an individual or entity appointed to administer the trust while fulfilling their fiduciary duty. This means they always act in the best interest of the trust’s beneficiaries.
What are the Trustee’s Responsibilities?
The trustee’s responsibilities are to follow the parameters set forth in the trust’s arrangements. These include managing trust assets, investing responsibly, distributions to beneficiaries as specified, and keeping current with tax obligations.
What is a Trust Beneficiary?
A trust beneficiary is someone or some entity which will benefit from the trust in the distribution of forms of income, assets, or other items; all of which are generally outlined in the trust documents.
Can a Trustee Remove a Beneficiary from a Trust?
Generally speaking, no, a trustee cannot remove a beneficiary from a trust. If the trustee is also the grantor and if the trust grantor has included specific provisions within the trust documents, then yes, in that case the trustee can remove themselves or others from the trust. This is a very rare scenario.
When Would a Trustee With Power of Appointment Remove a Beneficiary from a Trust?
A trustee with power of appointment may remove a beneficiary from a trust if they suspect the beneficiary of stealing assets from the trust, if they believe the beneficiary is not of sound mind or discretion to best manage their financial affairs, or if the beneficiary fails to meet certain guidelines or expectations detailed in the trust by a certain deadline set by the grantor.
How Difficult is It for a Trustee to Remove a Beneficiary?
The process of removing a beneficiary from a trust is very complex in most cases and typically involves multiple reviews and heavy litigation.
What Should I Do if I Suspect I’m Being Removed as a Trustee?
It’s important to seek out legal advice immediately, as time is of the essence in these matters and you must understand your rights as a beneficiary.
Do I Need a Trust Attorney?
Trust attorneys make life easier. While you can go about many aspects of trust law on your own, there are many nuanced and complex areas which will likely require legal expertise. So yes, we’d recommend you seek out legal help for matters involving a trust.
Contact Lorenzo Law for Further Guidance On Trust Related Legal Matters
Feel free to contact us for further guidance on trust related legal matters. We’re here to help you every step of the way. We work with our clients to achieve their goals as efficiently and effectively as possible. Please click the button below to contact us and we’ll be sure to respond to your inquiry as soon as possible. We look forward to hearing from you soon.
