You hope that the trustee who is responsible for managing the trust for your loved one is competent and honest. The trustee should manage the trust responsibly according to the wishes of the grantor. Unfortunately, not all trustees are trustworthy.
What happens when a trustee is shady or incompetent? Can you litigate the trust? Here are some situations in which you may want to enter trust litigation.
The trustee should always act in the best interest of the grantor. Unfortunately, some trustees use their position to benefit themselves. If you notice that the trustee is self-dealing, you may want to consider filing a lawsuit.
2. Mismanaging assets
One of the most crucial responsibilities of a trustee is to make smart financial choices. A trustee must invest assets in a prudent and risk-averse manner. When a trustee breaches this fiduciary duty and causes the trust funds to go down the drain, his or her role may be at risk.
The trustee has legal ownership of the assets within the trust. This means he or she is solely responsible for following the details of the trust. The ultimate goal of the trust is for the assets to benefit the beneficiaries. If, as a beneficiary, you see the trustee failing to fulfill the trust terms, you may want to request that the court remove him or her.
Trustees should always act in good faith towards the beneficiaries. The trustee should inform you about any pertinent updates and be generally respectful toward you. If the trustee is being disrespectful to you or other heirs, this may lead to his or her removal.
Dealing with any of these circumstances can be incredibly frustrating and disheartening. However, before you jump right into litigation, make sure you talk to an estate attorney. The process of removing a trustee can easily get complex, so you will have a better chance when you have legal advice.