In a highly anticipated opinion, the Pennsylvania Supreme Court has prevented an end around the no fault removal provision of Uniform Trust Code (“UTC”) Section 706. As we discussed in “An ‘End Around’ Trustee Removal,” UTC Section 706 provides that a court may remove a trustee if removal is requested by all of
So, You Want to Remove Your Trustee?
It is not uncommon for tensions to develop between a trustee and trust beneficiaries. In such cases, trust beneficiaries may want to remove a trustee and appoint a different trustee. Some causes of beneficiary complaints include poor trustee communication, poor investment results, decisions about the distributions of trust income and principal, and the failure to
An “End Around” Trustee Removal?
Uniform Trust Code Section 706 permits the removal of a trustee under specific circumstances, such as (1) commission of a serious breach of trust or (2) where removal is requested by all of the qualified beneficiaries, but only if a court finds that removal of the trustee best serves the interests of all of the
No Fault Removal: Can a Trustee be removed when the Trustee is not at fault?
No fault removal statutes begin a power shift. Trust beneficiaries who are faced with lack of personal service, high fees, and unsatisfactory trust administration now have a powerful tool to tip the scale.
Traditionally, it has been difficult to remove a trustee unless the trust agreement provides that the beneficiaries have the power to remove