Can the Trustee Make It Difficult to Terminate an Irrevocable Trust?

A trustee cannot make it difficult to terminate an irrevocable trust, which cannot be revoked once created. He must act in accordance with state trust laws and follow the instructions set forth by the trust grantor in the trust agreement. Beneficiaries may petition the court to examine the conduct of trustees, however.

Trust Property

State trust laws prevent trustees from mishandling trust property and, in some states, such as California, hold trustees liable for trust property that is lost, stolen or destroyed. Beneficiaries may bring legal proceedings against a negligent trustee and request compensation for the total loss suffered by the trust and its beneficiaries.

Administration Process

The administration process starts when the trustee sends the decree of death to the county assessor of each county where the trust grantor owned real estate and files the trust grantor's will in the superior court of the county where the trust grantor was living.

Beneficiaries and interested parties receive the file number of the estate, as well as the designation and the street address of the probate court in which the trust is pending. The parties involved may ask the court to investigate the conduct of the trustee. Inquiries into the conduct of a trustee involve questions of fraud or gross negligence, not questions about the validity of the trust.

After filing the trust in probate court, the trustee must act in accordance with state trust laws. If any procedure is not complete to the satisfaction of the state, the trustee may be held liable, which may include but is not limited to financial penalties.

File a Petition

To involve the court in the firing or investigation of a trustee who may be impeding the administration of a trust, visit the probate court where the trust is pending and petition the court for a hearing on the grounds of fraud or negligence. Ask the court to defer the trustee's authority until an investigation into the matter proves such claims to be false.

Hearing Date

By law, a beneficiary must serve the trustee and trust beneficiaries with written notice of the hearing date by the court-appointed deadline. Appear in court, and defend your claims with supporting documentation. If a trustee is found to be deliberately acting against the interests of the trust, the judge will typically remove the trustee from his position.

References

• US Legal: Notice of Administration Law and Legal Definition
• Toews Law Offices: Settling the Revocable Trust in California
• Office of Code Revision Indiana Legislative Services Agency: Probate and Grant of Administration
• Office of Code Revision Indiana Legislative Services Agency: Rules Governing the Creation of Trusts
• Office of Code Revision Indiana Legislative Services Agency: Probate and Grant of Administration
• Onecle: Prudent Administration