Beneficiaries rely completely on trustees to manage the assets of a trust with integrity, in accordance with the grantor’s wishes. Unfortunately, conflicts often arise when a trustee fails to live up to their expected standards. If you suspect that the person managing an estate is acting dishonestly, you need to understand the legal options available to protect your inheritance. In some cases, this means petitioning to remove the trustee.
What is a trustee’s fiduciary duty?
All trustee have strict ethical obligation to the beneficiaries of a trust. The legal term is fiduciary duty. It means that the trustee has to to manage the assets prudently, provide transparency and put your interests above their own.
When a trustee abuses their power, it can devastate a family estate. If you suspect mismanagement, look for these warning signs:
- Failing to provide regular financial accounts or updates
- Mixing trust funds with personal bank accounts
- Stealing or misappropriating assets from the trust
- Making reckless investment choices that lose money
These signs may indicate that it is time to petition a Minnesota court for the removal of a trustee.
Removing a trustee in Minnesota
If you suspect a trustee is acting corruptly, you need to act quickly to protect the estate. Under MN Statutes 501C.0706, the state of Minnesota allows interested parties to ask a judge to intervene. To remove a corrupt trustee, you must file a formal petition with the probate court in your jurisdiction in Minnesota. In a trust dispute, you must present clear evidence showing that the trustee breached their duty or is otherwise unfit to serve.
If the judge agrees with your petition, the court can remove the individual. The judge will then appoint a successor trustee to manage the estate correctly. The court can also order the corrupt trustee to pay back any stolen or mismanaged funds.