While trustees hold significant legal authority over trust assets, their position is not permanent. Either the court or the terms of the trust instrument can remove a trustee from their position. Here is what you need to know about the process in Texas.
What does the law say?
Texas law provides two ways to challenge a trustee’s power. First, you can check the trust instrument for a removal or replacement clause. If the removal clause applies, you may ask the trustee to step down from their position. Alternatively, if they refuse to step down, you can petition the court seeking their removal.
What are grounds for trustee removal in Texas?
Sometimes a problematic trustee may refuse removal. In such cases, the court may order their removal, provided they are:
- Being physically or mentally incapacitated
- Violating the terms of the trust, resulting in financial loss
- Failing to provide financial reports required by law or the terms of the trust
The court may also remove the trustee for other reasons it may find justifiable. Nevertheless, personal animosity of beneficiaries or co-trustee alone may not give legal grounds for removal.
How a legal guide may help
Whether you need to file a removal petition or seek interim emergency orders to safeguard assets, complex trust terms and various statutory requirements may get in your way. With the help of an experienced trust attorney in your corner, you may be able tackle these legal obstacles and ensure the trust is managed properly.