When and How a Court Can Remove a Trustee

(a) For an irrevocable trust, a cotrustee or a qualified beneficiary, or in the case of a charitable trust, the attorney general, may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative. In the case of an irrevocable trust in which the settlor has a retained interest, the settlor, the settlor's conservator or guardian, or the settlor's duly authorized agent under a durable power of attorney may also request the court to remove a trustee. (b) For a revocable trust, the settlor, the settlor's conservator or guardian, the settlor's duly authorized agent under a durable power of attorney, or a cotrustee may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative. (c) The court may remove a trustee if: (1) The trustee has committed a serious breach of trust; (2) Lack of cooperation among cotrustees substantially impairs the administration of the trust; (3) Because of unfitness, unwillingness, persistent failure of the trustee to administer the trust effectively, or any other reason, the court determines removal of the trustee best serves the interests of the beneficiaries; or (4) Removal of the trustee best serves the interests of all beneficiaries and: (A) There has been a substantial change of circumstances or removal is requested by all of the qualified beneficiaries; (B) Removal is not inconsistent with a material purpose of the trust; and (C) A suitable cotrustee or successor trustee is available. (d) 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 appropriate relief under section 554D-1001(b) as may be necessary to protect the trust property or the interests of the beneficiaries.