So, you need a new Trustee and you don’t like the next person named, huh? Removing a Trustee is never easy, but why bother even trying if the next person named to act as Trustee is no better than the currently acting Trustee? Well, you may be in for a nice surprise.

https://youtu.be/Fqa73efWyf4

When a Court decides a Trustee removal matter, the court has wide discretion to make orders that will solve the problem. That means the judge can remove a Trustee and appoint a new one. Not just the one named in the Trust document, but anyone that court thinks will make the Trust run smoothly. And that means you are most likely to have the court appoint a Professional.

Professional Trustees come in two main types: Corporate Trustees and private, professional Trustees. Corporate Trustees are corporations, usually banks, that offer their services in acting as a Trustee. Private, professional Trustees, however, are private individuals (not corporations) that are licensed to act as Trustees. Both are professionals, but they offer different levels of services and support.

Most courts prefer a professional Trustee because it resolves the problem once and for all. The judge doesn’t want you back in his/her courtroom arguing over the next Trustee in line. In most Trusts, the next Trustee named is simply the next child. Most Settlors will list out their children to act as Trustees. That could be fine, but in cases where the parties are suing in court, it could be a disaster to let the next child act. There are feelings of animosity and anger that won’t dissipate quickly. Whereas professionals come without the family baggage. A professional is often looked at by the Trust beneficiaries as being objective.

That’s not to say all professional Trustees are good. There are good ones and bad ones just like in any other profession. But if you do your homework, and find a professional that fits with your case, then a professional Trustee can be a great solution. And a professional is not family. The feelings of family animosity can be set aside so the Trustee can finish the Trust administration.

There are times when a court will appoint a private person, not a professional, to act as successor Trustee. And the court can also name the next person in line in the Trust document if that makes sense. It is all up to the discretion of the court. And most judges have an eye towards finding a permanent solution. Knowing that can help you craft your arguments to the judge.

The bottom line: just because there is a list of Trustees in your Trust document doesn’t mean the court must follow it. That’s helpful information if you want a professional to step in after you rid yourself of a bad Trustee.

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