Serving as a trustee comes with a strict fiduciary duty to manage trust assets solely in the best interest of the beneficiaries. When a trustee mismanages funds, fails to communicate or acts in self-interest, the beneficiaries often wonder if it’s possible to remove them. In Texas, a trustee can be removed either according to the terms of the trust agreement or through a court order under state law.
Terms of the trust agreement
Many well-drafted trusts include provisions granting a settlor, a trust protector or a designated majority of beneficiaries the power to remove and replace a trustee without court intervention. Following these written procedures is the fastest and least costly route.
Court order under state law
If the trust document lacks a removal clause, an “interested person,” such as a co-trustee or a beneficiary, can petition a Texas court. Under the law, a judge might order a removal if the trustee:
- Violated (or attempted to violate) the trust’s terms, resulting in a financial loss
- Becomes incapacitated, is insolvent or filed for personal bankruptcy
- Refused or failed to provide required legal accountings of trust finances
- Engaged in severe conflicts of interest, self-dealing or hostile behavior that impairs administration
Removing a trustee through the court system requires filing a formal petition, gathering financial evidence and presenting your case at an evidentiary hearing. Courts generally demand clear evidence of misconduct or incapacity before taking action.
Taking the right steps
Beneficiaries have a legal right to demand transparency and enforce proper management of the estate. If you suspect a trustee is failing their duties, reaching out to an experienced estate planning attorney could help protect the trust’s assets and safeguard the inheritance.