When Can a Trustee Be Removed?

 Posted on August 08, 2025 in Estate Planning and Probate

In the process of estate planning, the trustee is the person appointed to distribute the funds in a trust to its beneficiaries. As long as the trustee does what is expected of him or her, the distribution of assets usually goes smoothly. However, when a trustee does not meet the standards of the role, you may have to take legal action to have him or her removed. A San Antonio, TX estate litigation attorney can help you protect the assets in your trust and initiate removal proceedings.

If you suspect that the funds in your trust are being mishandled, Geoff Mayfield, Attorney at Law can help. Our firm can identify breaches of fiduciary duty and request the appointment of a new trustee.

Removing a Trustee Due to Mismanaged Funds

Trustees are expected to competently manage the funds within a trust. This is understood to mean that the trustee will not take any undue risks with the assets. However, if a trustee makes poor decisions with the funds, it could amount to thousands of dollars or more in damages. Mismanagement of a trust might involve wrongly distributed assets, late payments, or embezzling assets. According to Texas law, a trustee may be removed if, due to the trustee’s actions, the trust suffers a "material financial loss." 

To prove that the trustee has mismanaged the funds, you will need a detailed accounting of the assets. Our attorney can help you investigate the trustee’s management of the funds, looking for evidence that shows when and how the trust’s value was reduced. We can then present your case to a judge to petition for the trustee’s removal.

Removing a Trustee Due to Incapacity

Ideally, you would want someone of sound mind to manage the assets in your trust. When it becomes apparent that the trustee does not possess the faculties to distribute the assets faithfully, you may have to make the difficult decision to remove the trustee. An estate litigation attorney can help you take prompt legal action to remove an incapacitated trustee.

Incapacity is not a catch-all term to describe any kind of physical or mental disability. In Texas, a person is considered incapacitated when a disability affects his or her ability to manage his or her own affairs. For instance, if the trustee cannot faithfully follow the instructions in the trust due to a degenerative disease like Alzheimer’s, you could petition to have the trustee replaced.

Our attorney can help you build a case to prove that the trustee is no longer fit to fulfill his or her duty. We may cite the trustee’s medical records to justify a removal, bringing in expert witnesses if necessary.

Removing a Trustee for Violating the Terms of the Trust

Trusts often come with very specific instructions that must be followed to the letter. Not all errors come with grave consequences, and if the mistake is easily amended, it might not be grounds for removal. However, when the trustee makes a serious breach in the terms of the trust, knowingly or not, it may be in your best interests to seek a removal.

According to state law, a trustee can be removed if he or she fails to make an accounting required by law or specified in the trust. In most situations, the trustee must provide detailed information about all of the assets in the trust, including cash balances and liabilities. You can also have a trustee removed for other violations, such as failing to distribute the assets correctly. 

Removing a Trustee due to a Conflict of Interest

A trustee should be an objective third party who can fulfill his or her obligations without bias. In some cases, however, a trustee who stands to profit from the estate may put his or her own interests above the beneficiaries’ best interests. This may pose a threat to you if the trustee intentionally sabotages the distribution of assets for selfish gain. Conflicts of interest are sometimes known to happen when close family members are appointed as executors or trustees.

To have a trustee removed for a conflict of interest, you must be able to cite a clear instance of misconduct. For example, you could argue that a trustee was self-dealing by spending the funds solely for his or her own benefit. 

Do Trustees Have a Fiduciary Duty to Beneficiaries?

In Texas, all trustees have what is known as a fiduciary duty to the beneficiaries. This means that the trustee must handle the assets in the trust strictly for the beneficiaries’ best interests. When a trustee fails to meet this standard, it is referred to as a breach of fiduciary duty.

Not all breaches of fiduciary duty involve ill intent. Some breaches of fiduciary duty can be attributed to poor decision-making rather than self-dealing or embezzlement. Nonetheless, if you feel as though the breach of fiduciary duty warrants removal, our attorney can help you take legal action by petitioning for a new trustee who is fit for the role.

How Can I Initiate Removal Proceedings for a Trustee?

The process to remove a trustee is a formal legal procedure, and it should not be taken lightly. Before you start the proceedings to have a trustee removed, you should review the terms of the trust carefully. You should be able to articulate exactly how a trustee has not lived up to his or her duty as outlined in the document. The trust may also contain instructions about how a trustee can be removed.

If the trust does not contain explicit instructions for trustee removal, you can petition the court to intervene instead. Then, a hearing will be held in probate court to determine whether or not the trustee should be removed based on the available evidence. Our attorney can speak up for you at this hearing, advocating for a successor trustee to handle the distribution of funds.

Contact a San Antonio, TX Estate and Trust Lawyer

When your assets in a trust are at stake, the need for intervention may be urgent. Geoff Mayfield, Attorney at Law can represent you in trustee removal proceedings, working quickly to protect your best interests. To arrange a free consultation with our Comal County, TX estate litigation attorney, call us at 210-535-0870 today.