Wednesday, 4 March 2015

Does the successor trustee have the power to remove the sole trustee? Thank you

Question

Does the successor trustee have the power to remove the sole trustee? Thank you



Answer

No trustee has power to remove another trustee. If the trust is revocable, the settlor can change any trustee, and the settlor may be a trustee but the power to change or remove a trustee comes from being the settlor, not from being a trustee. If there is good cause, however, any trustee on behalf of the trust can ask a court to remove another trustee, but again that is not a power of the trustee; it is a power of the court.



Answer

I think you posted earlier, and your question is confusing. The sole trustee means only one trustee, as opposed to a situation where there are more than one trustee which are called co-trustees. A trust often provides for a successor trustee, if the acting trustee resigns or is incapacitated to act. Once the successor trustee becomes trustee, the successor trustee is the sole trustee.

A trustee can be removed by court petition, filed by the beneficiaries or a beneficiary, who must show that the trustee is not carrying out the trust, or engaged in mismanagement or self dealing.



No comments:

Post a Comment