Steps to Take if a Trustee Is Abusing Their Role

In 2025, only 24% of survey respondents by Caring.com said they have a will. While 13% reported having a living trust, only 4% said they had other estate planning documents. 

When it comes to trusts, a trustee holds a position of trust—literally. They are legally obligated to manage estate or trust assets responsibly and in the best interests of the beneficiaries.

According to trustee removal lawyer Jeffrey Forer, some grantors choose family members or friends to be their trustees, while others choose corporate trustees. It’s also possible to name multiple trustees. In this case, each one is known as a co-trustee.

But what happens when a trustee oversteps their authority? In case a trustee mishandles funds or abuses their power for personal gain, how will the law pursue this injustice?

It’s important to learn how to identify trustee abuse to protect your rights and take action before the situation escalates. Here’s how.

Identify the Signs of Trustee Misconduct

Misconduct by a trustee can come in a variety of guises and can be quite difficult to spot. Someone examining trustee activity might notice strange financial decisions, withdrawals for no apparent reason, or irregular reports. 

Refusal to show copies of the trust's account statements, reluctance to communicate, and decisions that are made solely by the trustee without informing the beneficiaries are also breaches of their legal covenants. In some cases, beneficiaries may feel a growing atmosphere of tension or awkwardness as the trustee's deeds are being discussed.

For those managing a living trust in Louisiana, these warning signs are particularly important. Louisiana law imposes strict fiduciary duties on trustees, requiring them to act with utmost fidelity and care toward the beneficiaries. The same applies to those who live in other states.

Although a sudden change in the trustee's demeanor, failure to respond to inquiring questions, or taking steps to stymie oversight are early red flags, they warrant closer scrutiny. These behaviors necessitate further investigation to ensure the trust is being administered properly and in compliance with state legal requirements.

Gather Evidence of Abuse

Documentation in its clarity and organization is a fundamental requirement in the assessment of possible breaches of the trustees. The normal starting procedure for a beneficiary is the collection of financial statements, emails, letters, accountings, or any trust-related documents showing suspicious activities. 

In case one decides to carry forward whatever has been simply collected, it is also useful to record names and provide dates, amounts, and short explanations for any transactions one can remember. 

An already persistent behavior could greatly catch attention or lead to conclusions if others have noticed these issues occurring as well; from the additional bankboards, written reports should be gathered with a view to creating a fairly common reaction. 

Copies of further emails or an official inquiry document can be produced a little later in assistance with any evidence in the court of law. The complete and precise data simplifies an evaluation by professionals, either a lawyer or accountant, concerning whether the trustee may have already broken their obligation of trust.

Communicate With the Trustee

Before pursuing further action, most families make reasonable efforts to take care of the issue. This usually entails coming upon the trustee with specific examples rather than complaints in general. 

Communication is key to any misunderstandings. Perhaps errors resulted from a person’s negligence rather than intentional misconduct. Unless the trustee is provoked, they are often willing to provide the necessary documents to clarify and correct a legitimate mistake.

This process of discussion becomes the best tool as long as the conversation remains centered on the actual administration of the trust and the duties of the trustee, which are to act with prudent judgment and to prevent conflicts of interest. 

If matters persist or communication begins breaking down, then additional action may be required.

Seek Legal Advice

The need for trustee professional services is much more pronounced with the rising smell of trustee misconduct. If anything seems off, you need a lawyer who specializes in trusts and estates. 

A lawyer can explain to you the trustee's legal obligations under state laws, help assess the evidence, and explain the various alternatives for resolution. These options could typically vary from requesting an accounting to removal of the trustee in case the circumstances are such that such measures are needed. 

Proving to the attorney as much as you can that the trustee has not enforced their trust-related obligations, such as honesty, fairness, and fiduciary duty, is equally important. 

Many trustors at this juncture seek explanations about legal issues and would prefer to seek advice to prevent complicating matters later.

Consider Court Intervention

If informal attempts at resolution prove futile, court intervention may become necessary. Indeed, courts are fully able to seek from trustees an accounting as well as suspend their power or set them aside, evidencing mismanagement, self-dealing, or breach of confidence by a trustee. 

In general, in solely filing for such an action, extensive supportive documentation is involved—financial information plus copies of correspondence with the trustee. The idea of tapping legal channels might seem scary, but it is sometimes the only possible course towards protecting the trust fund and ensuring orderly conduct.

It is critical to appreciate that the trust of the trustees is vested in beneficiaries and law, and the supervision by courts is directed towards preserving the purpose of a given trust. 

Or when a big concern comes up, requesting to open an impartially administered trust by having a trustee file such a petition with the court can help to restore transparency forthwith and in favor of the interests of all in the trust.