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The Vermont Statutes Online

 

Title 14A : Trusts

Chapter 007 : OFFICE OF TRUSTEE

(Cite as: 14A V.S.A. § 706)
  • § 706. Removal and replacement of trustee

    (a) The settlor, a cotrustee, or a beneficiary may request the probate division of the superior court to remove a trustee under subsection (b) of this section or to replace a trustee under subsection (c) of this section. A trustee may be removed by the Probate Division of the Superior Court on its own initiative.

    (b) The Probate Division of the Superior Court may remove a trustee if:

    (1) the trustee is obviously unsuitable;

    (2) the trustee has committed a serious breach of trust;

    (3) lack of cooperation among cotrustees substantially impairs the administration of the trust;

    (4) 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;

    (5) there has been a substantial change of circumstances or removal is requested by all of the qualified beneficiaries, the Probate Division of the Superior 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 cotrustee or successor trustee is available;

    (6) for any cause, if the interests of the trust estate require it.

    (c) The Probate Division of the Superior Court may remove an existing trustee, and appoint a replacement trustee subject to the provisions of section 704 of this title, if the Probate Division of the Superior Court finds that a change in trustee would be in keeping with the intent of the settlor. In deciding whether to replace a trustee under this subsection, the Probate Division of the Superior Court may consider the following factors:

    (1) Whether removal would substantially improve or benefit the administration of the trust;

    (2) The relationship between the settlor and the trustee as it existed at the time the trust was created;

    (3) Changes in the nature of the trustee since the creation of the trust;

    (4) The relationship between the trustee and the beneficiaries;

    (5) The responsiveness of the trustee to the beneficiaries;

    (6) The experience and skill level of the trustee;

    (7) The investment performance of the trustee;

    (8) The charges for services performed by the trustee; and

    (9) Any other relevant factors pertaining to the administration of the trust.

    (d) A Probate Division of the Superior Court may order trustees who are replaced pursuant to an action brought under subsection (c) of this section to reimburse the trust for attorney's fees and court costs paid by the trust relating to the action.

    (e) Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the Probate Division of the Superior Court may order such appropriate relief under subsection 1001(b) of this title as may be necessary to protect the trust property or the interests of the beneficiaries. (Added 2009, No. 20, § 1; amended 2009, No. 92 (Adj. Sess.), § 8; 2009, No. 154 (Adj. Sess.), § 236, eff. Feb.1, 2011.)