Can You Remove an Executor or Trustee?

Executors and trustees have a considerable amount of power over a decedent’s assets and settling their financial affairs. However, disputes can arise when an executor (referred to as a “personal representative” in Michigan) or trustee fails to act properly in carrying out their duties. In such cases, it may be necessary for a party who is impacted by their carelessness or misconduct to petition for removal.

Key Takeaways

Under Michigan law, there are specific grounds to remove an executor or trustee.
A trustee may be removed for a serious breach of trust, being unfit to serve in the role, and lack of cooperation to the extent it impairs the administration of the trust.
An executor may be removed for intentional misrepresentation, mismanagement of the estate, inability to perform their duties, and when removal is in the best interests of the estate.
Not all disputes need to be resolved in court. Conflicts with an executor or trustee can often be settled using alternative dispute resolution.

What Are Some Reasons to Remove an Executor or Trustee?

While you expect the person who was appointed as your loved one’s executor will act prudently and in the best interests of their estate, an executor may sometimes fail to do so. This can raise considerable concerns among heirs, beneficiaries, creditors, and anyone else who has an interest in the estate. When this happens, Michigan law provides a legal process for removing an executor and appointing an individual who is better suited to carry out their responsibilities.

Specifically, a party simply cannot request an executor’s removal because they are dissatisfied with who was appointed. A party requesting removal must be able to assert legal grounds that justify the removal. Under Michigan law, some of the grounds to remove an executor in Michigan include the following:

Removal is in the best interests of the estate
Intentional misrepresentation of material facts during their appointment
Mismanagement of the estate
Inability to perform their duties
Disregard for a court order
Failure to perform a duty of their office

Similarly, Michigan law also allows for the removal of a trustee who acts improperly. A trustee can be removed for serious breach of trust, unfitness to serve in the role, lack of cooperation to the extent it impairs the administration of the trust, and other circumstances that justify removal.

What is the Process of Removing a Personal Representative or Trustee?

MCL 700.3611 specifies that any interested person may petition the probate court for the removal of a personal representative for cause at any time. Once a petition has been filed with the court and notice given to the personal representative and all interested parties, the personal representative may be restricted from acting further, except to account, remedy issues, or preserve the estate until the court renders its determination. The court will schedule a hearing to determine whether the estate is being properly administered and the personal representative’s continued service would harm the estate.

To remove a trustee, a petition may be brought by a settlor, cotrustee, or qualified trust beneficiary. The petition must state the specific grounds for removal and request the appointment of a successor trustee. The court may also take the initiative to remove the individual in the role of trustee on its own motion. After a hearing has been scheduled and removal is pending, the court may order additional relief to ensure the trust and beneficiaries are protected.

What Options Are Available to Resolve Issues with an Executor or Trustee?

Not every dispute between an executor or trustee needs to be resolved in court. Some conflicts can be settled between the parties using mediation or another form of alternative dispute resolution. In mediation, the interested parties can discuss their concerns, address the issues that need to be remedied, and work to reach a resolution. Unlike litigation, which takes place on the public record, mediation allows family disputes to remain private. The process also allows for efficient, cost-effective, and customized solutions that might not be available in the courtroom.

In addition, arbitration can be used to resolve a variety of conflicts with an executor or trustee. This out-of-court process can be particularly effective to resolve issues related to administration disputes, asset valuation, and fiduciary conduct. Although the process is similar to a mini-trial, it allows the parties to have greater control over the outcome of the dispute.

Other remedies can include demanding a formal accounting to resolve suspicions of mismanagement or negotiating disputes arising from miscommunication. A court may also reduce or deny the compensation of an executor or trustee and order them to perform their duties. While allowing problems with an executor or trustee to continue can be detrimental to your rights as a beneficiary, a knowledgeable trusts and estates attorney can advise you regarding the best course of action.

Contact an Experienced Michigan Trusts and Estates Attorney

If you believe you have reason to remove a trustee or grounds to remove an executor in Michigan, it’s essential to have a skillful trusts and estate litigation attorney by your side. At Barron, Rosenberg, Mayoras & Mayoras, we are committed to helping families navigate the complexities of trust administration and the probate process. Schedule a consultation today by calling (248) 641-7070 in Michigan or (941) 222-2199 in Florida to learn how we can assist you. You can also use our simple online contact form.