456.7-706. Removal of trustee.
Removal of trustee.
456.7-706. 1. The settlor, a cotrustee, or a qualified beneficiarymay request the court to remove a trustee, or a trustee may be removed bythe court on its own initiative.
2. 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 theadministration of the trust;
(3) because of unfitness, unwillingness, or persistent failure of thetrustee to administer the trust effectively, the court determines thatremoval of the trustee best serves the interests of the beneficiaries; or
(4) the trustee has substantially and materially reduced the level ofservices provided to that trust and has failed to reinstate a substantiallyequivalent level of services within ninety days after receipt of notice bythe settlor, a cotrustee, or a qualified beneficiary or removal isrequested by all of the qualified beneficiaries and in either such case theparty seeking removal establishes to the court that:
(a) removal of the trustee best serves the interests of all of thebeneficiaries;
(b) removal of the trustee is not inconsistent with a materialpurpose of the trust; and
(c) a suitable cotrustee or successor trustee is available andwilling to serve.
3. In an action to remove a trustee under subdivision (4) ofsubsection 2 of this section, the following apply:
(1) In the event that a corporation is the trustee being removed, asuitable replacement cotrustee or successor trustee shall be anothercorporation qualified to conduct trust business in this state.
(2) In the event that a successor trustee is not appointed under theprovisions of section 456.7-704 or the court finds that all potentialsuccessor trustees are not suitable, then the court may appoint suchtrustee or trustees as the court finds suitable under the circumstances.
(3) With respect to a trust created under an instrument executedbefore January 1, 2005, the provisions of subdivision (4) of subsection 2of this section shall not apply if the instrument contains any proceduresconcerning removal of any trustee.
4. Pending a final decision on a request to remove a trustee, or inlieu of or in addition to removing a trustee, the court may order suchappropriate relief under subsection 2 of section 456.10-1001 as may benecessary to protect the trust property or the interests of thebeneficiaries.
(L. 2004 H.B. 1511)Effective 1-01-05