Petitioning Court for Removal A petition for removal of a trustee can be filed by either a co-trustee or a beneficiary. This process can be further complicated if beneficiaries are also designated as trustees. The petition may also seek financial damages from the trustee.
Can I remove trustees from family trust?
Section 20 of the Act: “A trustee may on application of the Master or any person having an interest in the Trust property, at any time be removed from his office by the court if the court is satisfied that his removal will be in the interests of the Trust and its beneficiaries.”
How can I remove a trustee from my trust?
Beneficiaries seeking removal of a trustee may also need to file a petition for removal, as discussed below. A petition for removal of a trustee can be filed by either a co-trustee or a beneficiary. This process can be further complicated if beneficiaries are also designated as trustees.
Can a court remove a beneficiary from a trust?
Failing the above, the court has the power to remove a trustee. An application to remove a trustee can be made by a beneficiary or a trustee. When applying to remove a trustee you should try to ensure that you have a replacement or substitute trustee available.
Can a trustee be removed under the Trust Act 1925?
Being ‘unfit’ depends on the circumstances of the case. Often, a person who has been made bankrupt or convicted of fraud will be unfit to act. However, section 36 of the Trustee Act 1925 is not automatically available to beneficiaries unless they are also trustees or if they have power to remove trustees under the trust instrument.
When does the court have jurisdiction to remove a trustee?
The court has an inherent jurisdiction to supervise and, if necessary, intervene in the administration of trusts (Schmidt v Rosewood Trust Ltd [2003] AC 79), including jurisdiction to remove trustees to protect the interests of the beneficiaries. Here, one must look to case law, also known as ‘common law’.
