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On what grounds could a trustee be removed?

by | Jun 25, 2021 | Estate Litigation

Having a trust is often considered a valuable way to protect assets from creditors and lawsuits and to ensure that future generations can easily inherit assets. Because trusts have to be managed, it is essential that a responsible party is named as the trustee. Unfortunately, even if someone seems like the best choice at the time of appointment, his or her actual handling of the trust could leave much to be desired.

If a Nevada trustee fails to act appropriately and within the scope of his or her power when managing he trust, it may be necessary to remove that person. In some cases, individuals include terms in their trust at the time of creation that explain when a trustee can be removed and who can conduct the removal. Often, these individuals include the person who created the trust, the trust’s beneficiaries, other co-trustees or the trustee him or herself.

It is important to understand that grounds for removal are typically needed before any of the aforementioned parties can start removal proceedings. Common grounds for removal include:

  • The trustee mishandles assets.
  • The trustee breaches the terms of the trust or otherwise fails to comply with his or her fiduciary duties.
  • The trustee acts in his or her personal interests rather than in regard to the interests of the trust and its beneficiaries.
  • The trustee violates state laws regarding the conduct of a trustee.

Of course, other grounds for removal could also exist, and if the matter goes to court, the court could determine other reasons for removing the trustee. Unfortunately, trust disputes are not unheard of, and if Nevada residents are facing issues, they will certainly want to understand their legal options. In some cases, removing someone from a position of power when that person is abusing that power may be a viable course of action.