How much does it cost to remove a trustee from my will?

A trustee is responsible for managing the assets held in the trust on behalf of the beneficiaries. If you are the beneficiary of a trust, you may need to remove the trustee if you believe they have breached fiduciary duty or otherwise mismanaged assets. But how much does it cost to remove a trustee? There is no one-size-fits-all answer as court fees and legal fees can vary depending on the circumstances.

If you want to get your estate in order, a financial advisor can help you.

What are the duties of a trustee?

A trustee is a person or entity authorized to manage assets in a trust. The trust creator, also called the grantor, can choose who to serve as trustee. They may also appoint one or more successor trustees in the event that the original trustee is unable to fulfill their duties for any reason.

In terms of what a trustee does, their primary role is to manage the trust on the grantor’s terms and in accordance with the best interests of the beneficiaries. Trustees are held to a fiduciary standard, which means they must act ethically in overseeing the trust.

Typical duties of a trustee may include:

• Following the terms of the trust and upholding the grantor’s wishes.

• Making required distributions of trust assets to beneficiaries according to the terms of the trust.

• To pay all necessary fees required to maintain the trust or the assets held therein.

• Provide trust beneficiaries with information about the trust when requested.

The duties of a trustee are different from those of an executor. An executor is someone charged with carrying out the terms of a will after someone dies. It is possible to name the same person as executor and trustee if your estate plan includes both a will and a trust.

Can a trustee be removed?

Yes, it is possible to remove a trustee from the management of a trust. However, you must have a good reason for this.

Unless the trust document specifies exact conditions under which beneficiaries can request the removal of a trustee, you generally must be able to prove that there has been a breach of fiduciary duty. Examples of breach of fiduciary duty include:

• Misappropriation of trust assets for the trustee’s personal use.

• Intentionally withholding assets from beneficiaries even when doing so violates the terms of the trust.

• Commingling of the trust’s assets with the trustee’s personal assets.

• Conflicts of interest involving the trustee or third parties associated with him.

• Mismanagement in record keeping or failure to provide beneficiaries with copies of documents they may request.

• Fraud or deception intended to deter beneficiaries from misusing trust assets to which they are entitled.

The story continues

You may also be able to ask a trustee to resign if you believe that age or disability is preventing them from carrying out their duties effectively. Or you may be able to request removal if you believe the trustee does not have the skills to perform their duties. For example, if a trustee files for Chapter 7 bankruptcy because he dug a debt hole he can’t get out of, you might not feel comfortable putting him in charge of the trust assets.

All of these scenarios assume that beneficiaries will attempt to remove a trustee after the trustor dies. The grantor may decide to remove a trustee during his lifetime if he believes another person or entity may be a better fit. The trustee may also voluntarily resign if he is unable to fulfill his duties or does not wish to be appointed as trustee in the first instance.

Estate planning can quickly become complicated. Consider talking to a fiduciary financial advisor who can help you navigate the rules.

How much does it cost to remove a trustee?

There is no one-size-fits-all number for how much it costs to remove a trustee from a trust. The total costs may depend on the reasons for the move. And that can include who initiates it and whether the trustee tries to challenge the removal.

For example, in a situation where the trustee chooses to reduce the cost of removing it, naming one or more successor trustees may not amount to anything. The successor trustee can take over his duties without making major changes to the trust document.

Now suppose the trustor is still alive and wants to make a change in the trustee. They have not appointed any successors. They may have to pay additional legal fees to their attorney to update the trust documents.

Removing a trustee can have the highest costs if you apply for a court order for the removal. At that stage, you will likely pay legal fees to start a case, as well as legal fees to one or more lawyers to argue the case before a judge. Depending on how long the case takes and the size of your legal team, you can easily pay thousands of dollars to fire a conservator.

How do you remove a trustee from a trust?

There are a number of ways in which a trustee can be removed from a trust. As mentioned, the trustee can update the terms of the trust during his lifetime. The curator can also choose to remove himself. And the removal happens automatically if the curator dies.

Assuming none of these conditions apply, legal action is typically required to remove a trustee. In order to initiate legal proceedings for removal of trust, you must be an interested party. Interested parties include:

If you are an interested party, you must petition the probate court to initiate proceedings for the removal of the trustee. You will have an opportunity to present evidence as to why the trustee should be removed, while the trustee will have a chance to defend himself.

Evidence can be critical to proving your claim and removing a trustee. So it is important to gather as much documentation as possible showing why you believe the trustee breached their fiduciary duty or otherwise failed to perform their duties.

If you have any questions, a financial advisor may be able to help you.

It comes down to

There are many variables for how much it costs to remove a trustee. And that can affect the final number. If you are the beneficiary of a trust, it is important to know what rights you have. And it’s important to know when to request removal if you believe the trustee has breached their fiduciary duty in managing assets.

Estate planning tips

• Consider talking to your financial advisor about whether a trust belongs in your estate plan, or how to respond if you believe a trustee is mismanaging the trust assets you stand to inherit. If you don’t already have a financial advisor, finding one doesn’t have to be complicated. SmartAsset’s financial advisor matching tool makes it easy to connect with three vetted professional advisors serving your region. It only takes a few minutes to get personalized advisor recommendations online. Start now.

• If you have a sizable estate, state or federal estate taxes may be high. However, you can easily plan ahead with taxes to maximize your loved ones’ inheritances. For example, you can donate part of your estate to heirs in advance, or even set up a trust.

• Have an emergency fund on hand in case you encounter unexpected expenses. An emergency fund should be liquid – in an account that is not at risk of significant fluctuations like the stock market. The trade-off is that the value of liquid cash can be eroded by inflation. But with a high-interest account, you can earn compound interest. Compare savings accounts from these banks.

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