When an executor or trustee of an estate or trust from which you receive an inheritance or distributions engages in misconduct or breaches their fiduciary duties, you may want to remove them from their position to protect your financial interests. However, removing an executor or trustee in Morris County can involve a legally and factually complex process. Working with an experienced trusts and estate attorney from E.A. Goodman Law LLC can help you take legal action to remove an executor or trustee for misconduct or breach of fiduciary duties. Contact our firm today for an initial case evaluation to discuss your legal options.
Grounds for Removal of an Executor or Trustee
A beneficiary of an estate or trust may pursue removal of an executor or trustee on specific grounds, such as:
- Breach of Fiduciary Duty – Executors and trustees owe fiduciary duties of good faith, fair dealing, diligence, and impartiality. Breaches of fiduciary duties may include mismanaging or wasting assets, engaging in self-dealing, or showing partiality to specific beneficiaries.
- Incapacity – An executor or trustee may become disqualified from their role due to injury or illness that causes legal incapacity, severe substance or alcohol abuse, or criminal indictment/conviction.
- Misconduct – Executor/trustee misconduct may include willful acts such as misappropriating estate/trust assets or usurping financial opportunities belonging to the estate or trust.
- Breach of the Will or Trust – A beneficiary may seek to remove an executor or trustee for apparent failures to follow the terms of the will or trust.
- Conflict of Interest – A court may remove an executor or trustee when a beneficiary demonstrates they have a conflict of interest, or a potential to act for their own or a third party’s benefit to the detriment of the estate/trust and its beneficiaries.
- Failure to Act – Beneficiaries may petition to remove executors or trustees who unjustifiably delay distributions or whose inaction diminishes the value of estate/trust assets.
Who Can Petition for Removal?
In most cases, a beneficiary of an estate or trust will petition to remove an executor or trustee due to breaches of fiduciary duties or misconduct that cause financial losses for beneficiaries. However, other parties may also have the right to petition to remove an executor or trustee. For example, a co-executor/trustee or a successor executor/trustee named in the will or trust can petition to remove an executor/trustee due to their misconduct or incapacity. Other parties who may have an interest in removing an executor or trustee include:
- The settlor of a revocable trust
- A decedent’s creditors or the creditors of a settlor of a revocable trust
- Guardians of minor beneficiaries
The Legal Process for Removal in Morris County
Removing an executor or trustee in Morris County, NJ, begins when a beneficiary or another interested party files a complaint with the probate part of the Chancery Division of the New Jersey Superior Court. The complaint must describe the petitioning party’s interest and standing to petition for the executor’s or trustee’s removal and allege facts to establish grounds for removal, such as claiming a breach of fiduciary duty, misconduct, or incapacity.
After filing their complaint, the petitioning party must serve a copy on the executor/trustee and send notice to all interested parties, including other beneficiaries of the estate or trust, to allow those parties to appeal in court if they wish.
The court will schedule a hearing to resolve the complaint. At the hearing, the petitioning party must present evidence or witness testimony to prove grounds for the executor’s or trustee’s removal. A court may remove an executor or trustee if it finds by clear and convincing evidence that one or more grounds exist to remove them. However, a court may order other relief instead of ordering an executor’s or trustee’s removal, such as appointing a co-executor/trustee, requiring the executor/trustee to file an accounting with the court, or directing distributions to beneficiaries.
What Happens After Removal?
When a court decides that it should remove an executor or trustee due to their incapacity, misconduct, or significant breach of fiduciary duties, it will order the executor’s or trustee’s removal and appoint a successor executor or trustee. The court may choose to name a petitioning party, such as a successor named in the will or trust, to assume the role of executor or trustee. Alternatively, the court may appoint a professional fiduciary as a successor executor or trustee, primarily when the prior executor’s or trustee’s mismanagement has caused significant financial issues that require professional input to fix.
The court may also review the removed executor’s/trustee’s actions to determine whether they may have caused financial losses for the estate/trust and its beneficiaries. The court can order the removed executor or trustee to compensate the estate/trust or the beneficiaries for such losses.
Preventing Disputes Through Planning
Through careful estate planning, testators and settlors can prevent disputes between executors/trustees and beneficiaries or other interested parties. Best practices include:
- Carefully considering the choice of executor or trustee, making sure that the selection does not have potential conflicts of interest
- Implementing oversight measures, such as co-executors/trustees, and requiring unanimous consent among fiduciaries
- Incorporating provisions in wills or trusts that require regular accountings from executors or trustees
How Can an Estate Litigation Attorney Help?
An estate litigation lawyer can help you pursue an action to remove an executor or trustee for breaches of fiduciary duties, incapacity, or misconduct by:
- Investigating your claims to recover evidence of an executor’s/trustee’s misconduct or breach of fiduciary duties
- Walking you through your legal options
- Preparing and filing your petition in the chancery division
- Advocating your case in court to protect your financial interests
Contact Our Firm for Assistance
When an executor or trustee has breached their fiduciary duties, engaged in misconduct, or mismanaged an estate or trust, you may have the right as a beneficiary to pursue legal action to remove the executor or trustee. Contact E.A. Goodman Law LLC today for a confidential consultation with an experienced trusts and estate attorney to learn more about petitioning to remove an executor or trustee.