Detailed Answer
When a trustee misuses trust funds, beneficiaries in Connecticut have several remedies under the Connecticut Uniform Trust Code (Conn. Gen. Stat. § 45a-499 et seq.). A misuse may include unauthorized transfers, self-dealing, or failure to account for trust assets. Connecticut law imposes strict fiduciary duties on trustees, including duties of loyalty, prudence, and impartiality. Breaches of these duties can trigger judicial intervention.
1. Demand an Accounting
Under Conn. Gen. Stat. § 45a-514(a), beneficiaries can request a full accounting of trust transactions. This process forces the trustee to disclose income, expenses, and distributions. If the trustee refuses, a beneficiary can petition the court to compel an accounting.
2. Petition for Removal of the Trustee
Conn. Gen. Stat. § 45a-512(a) allows removal of a trustee for serious breaches, unfitness, or failure to administer the trust. A beneficiary must show cause by clear and convincing evidence, such as proof of fraud or gross negligence.
3. Seek Surcharge or Restitution
Under Conn. Gen. Stat. § 45a-514(b)(4), the court can surcharge the trustee to restore misused funds plus interest. This remedy compensates the trust for losses caused by the breach.
4. Obtain Other Judicial Remedies
Beneficiaries may request additional relief under Conn. Gen. Stat. § 45a-514(b), including injunctions, removal of assets for safekeeping, or appointment of a temporary trustee. In extreme cases, beneficiaries can pursue criminal charges for embezzlement under Conn. Gen. Stat. § 53a-122.
Helpful Hints
- Document all communications and transactions with the trustee.
- Review the trust instrument for specific accounting and removal provisions.
- Consult the probate clerk for local court filing procedures.
- Keep copies of bank statements, receipts, and trust documents.
- Consider mediation before litigation to reduce legal costs.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. For guidance tailored to your situation, consult a qualified attorney.