An executor or personal representative administers an estate. A trustee is responsible for administering a trust. Both parties must manage resources, comply with instructions in the estate planning documents and defer to state law. They must communicate with beneficiaries or heirs and should act in their best interests.
Families often rely on trustees and personal representatives to manage the resources of loved ones and to distribute them appropriately during estate or trust administration. Occasionally, concerns about the conduct of a personal representative or trustee could lead to probate litigation.
When might concerned parties seek the removal of a person administering an estate or trust?
When they fail to act
Estates and trusts require prompt and ongoing management. From securing resources to making decisions about their storage and managing investment funds, there are many tasks that require regular attention. If trustees or personal representative fail to initiate the probate process, forget to physically secure resources or seem disengaged from resource management, their inaction could provide the basis for their removal from their role.
When they breach their fiduciary duty
Both trustees and personal representatives have a legal duty because of the position they hold. They specifically have a fiduciary duty to beneficiaries or heirs. They must act in the best interests of those receiving assets from the trust or inheriting from the estate. Both misconduct and negligence can constitute a breach of fiduciary duty.
Embezzling from a trust is a breach that could warrant the removal of a trustee. Incompetently managing assets in a manner that diminishes the value of an estate could be grounds to seek the removal of a personal representative. Concerned parties usually need proof of conduct that diminished the value of resources to seek the removal of a fiduciary.
When problems affect their job performance
In some cases, challenging personal situations can prevent otherwise competent and trustworthy people from fulfilling their fiduciary duty. Major health issues, pending divorce, recent criminal charges and financial hardship could all prevent a trustee or personal representative from adequately serving in their role. While they may have every intent of doing so, their circumstances may put too much pressure on them or may compromise their ability to review the situation rationally.
Reviewing concerns about a trust or estate with a skilled legal team can help beneficiaries and heirs understand their options. Showing that a breach of fiduciary duty occurred can be a reason to remove a person from their administrative role.