Removing A Trustee Who Fails Their Duties

Being a trustee isn’t a ceremonial role. It’s a serious legal responsibility that comes with real obligations. Trustees have to manage assets carefully, follow what the trust document says, and always put the beneficiaries’ interests first, but people fail at this job. When a trustee drops the ball or starts acting in their own self-interest, Tennessee law gives you options to remove them. It’s not always easy, and it shouldn’t be. But it’s possible when the situation calls for it.

Legal Grounds For Trustee Removal

You can’t remove a trustee just because you don’t like them. Personal disagreements aren’t enough, and neither are simple differences of opinion about investment strategies. There has to be a legitimate legal reason that justifies such a drastic step. Tennessee courts will consider removal in several situations:

• The trustee has violated the trust terms or is unfit to execute their duties
• There’s been a serious breach of trust
• Co-trustees can’t work together, and it’s harming trust administration
• Changed circumstances mean the trustee can’t effectively do the job anymore
• Removal would serve the beneficiaries’ best interests without undermining the trust’s main purpose

These grounds often involve trustees who mismanage investments, fail to communicate with beneficiaries, or use trust funds for personal expenses. Sometimes a trustee becomes incapacitated. Other times, conflicts of interest develop that make continued service impossible.

Common Trustee Problems

Trustees can fail their duties in countless ways. Some violations are obvious and blatant. Others develop slowly over time until the damage becomes undeniable. We’ve seen trustees who refuse to provide accountings to beneficiaries, which is a basic legal requirement in Tennessee. They’ll dodge phone calls, ignore emails, and stonewall requests for information. This isn’t acceptable. Others make extremely risky investments that lose significant value, or they play favorites by treating some beneficiaries better than others.

Self-dealing is particularly serious. This happens when trustees use trust property for their own benefit or enter into transactions that benefit themselves rather than the people they’re supposed to serve. Even if the trustee genuinely believes they’re acting reasonably, these conflicts of interest usually violate their fiduciary duties. The law doesn’t care about good intentions when self-dealing is involved. Poor record-keeping causes problems too. When trustees fail to keep up with administrative requirements like tax filings or miss deadlines for distributions, they’re putting the entire trust at risk. Some trustees simply can’t handle the organizational demands of the role.

The Court Process

Most trustee removals require going to court unless the trust document includes specific removal provisions. An Alcoa trust lawyer can file a petition with the chancery or probate court where the trust is administered. Then the court schedules a hearing where both sides present evidence. You’ll need proof. The trustee has actually violated their duties, or removal genuinely serves the beneficiaries’ interests. This often means gathering financial records, correspondence, account statements, and other documentation that shows the trustee’s failures. The trustee gets an opportunity to respond and defend their actions, which is only fair. Courts don’t take these cases lightly. Trustee removal is expensive and disruptive to trust administration. Judges understand that. However, they will act when there’s clear evidence of wrongdoing or incompetence. The question becomes whether the trustee’s conduct justifies such a drastic remedy.

Alternatives To Court Action

Sometimes you can resolve these problems without litigation. If the trust document allows beneficiaries to remove and replace the trustee, that’s often the simplest path forward. Some trusts give this power to a majority of beneficiaries or to a trust protector who oversees administration. Another option? Negotiating the trustee’s resignation. When confronted with solid evidence of their failures, many trustees will voluntarily step down rather than face a public court battle. This saves everyone time, money, and stress. When problems stem from a lack of knowledge rather than bad faith, additional oversight might fix things. Appointing a co-trustee or requiring the trustee to work with professional advisors can sometimes correct course without removal. Not every problem requires the nuclear option, and an Alcoa trust lawyer can help you understand your options.

Protecting Your Interests

Trust beneficiaries have rights. Those rights include proper trust administration, transparent communication, and responsible asset management. If you’re concerned about a trustee’s conduct, start documenting everything right now. Keep copies of all communications, financial statements, and trust distributions. Request regular accountings in writing so there’s a paper trail. Don’t wait until the situation becomes catastrophic. Working with Carpenter & Lewis PLLC can help you understand whether the trustee’s actions justify removal or whether other remedies might address your concerns more effectively. We can review the trust document, evaluate the trustee’s conduct against Tennessee law, and explain your legal options in plain language. Trust administration should protect beneficiaries and preserve assets for their intended purposes. It shouldn’t serve the trustee’s convenience or personal interests.