Section 706
(a)
The settlor, a co-trustee or a beneficiary may request the court to remove a trustee or a trustee may be removed by the court on its own initiative.
(b)
The court may remove a trustee if:
- (1) the trustee has committed a serious breach of trust;
- (2) there is a lack of cooperation among co-trustees that substantially impairs the administration of the trust;
- (3) because of unfitness, unwillingness or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries; or
- (4) there has been a substantial change of circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust and a suitable co-trustee or successor trustee is available.
(c)
Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order such appropriate relief under subsection (b) of section 1001 as may be necessary to protect the trust property or the interests of the beneficiaries.
Procedural advisory commentary (2013)
Practice note
An action to seek the removal of a trustee may now be commenced under the MUTC for reasons other than cause. In the absence of cause, the court must find that removal serves the best interests of all (not just qualified) beneficiaries, is not inconsistent with a material purpose of the trust, and that there is a suitable co-trustee or successor trustee available.
Form update
A Petition for Resignation/Removal/Appointment of Successor Trustee (MPC 266) and a proposed Decree and Order on Petition for Resignation/Removal/Appointment of Successor Trustee (MPC 782) may be filed to seek the removal of a trustee and may also be used to request the appointment of a successor trustee to fill a vacancy in a trusteeship caused by the removal without filing a separate petition. Notice shall be by citation in accordance with § 109 of the MUTC. The filing fee to request removal of a trustee is $100. If the petition also requests the appointment of a successor trustee to fill a vacancy, the filing fee is an additional $375.00. The filing fee for a citation, if necessary, is $15.00. Note: If the petition is the first or initial action filed in the court (e.g., an action to remove a trustee of a non-testamentary trust) a surcharge of $15.00 shall also be assessed.