Trustees handle assets for beneficiaries. If you suspect misuse of trust funds in New Hampshire, you have legal rights and options. This FAQ explains the steps to challenge a trustee who misuses trust funds.
Detailed Answer
Understanding Trustee Duties
Under New Hampshire’s Uniform Trust Code (RSA 564-B), a trustee must act in the best interests of beneficiaries, follow the trust terms, and avoid conflicts of interest. They must manage and report trust assets prudently and loyally.
Identifying Misuse of Trust Funds
Misuse includes unauthorized withdrawals, self-dealing, failing to invest properly, or mixing trust funds with personal assets.
Steps to Challenge Trustee Misconduct
- Review the Trust Document. Read the trust instrument to understand the trustee’s powers and any special instructions.
- Request an Accounting. Under RSA 564-B:813, beneficiaries may request details of trust transactions and balances.
- Send a Demand Letter. Formally ask the trustee to correct the misuse and provide missing records.
- File a Petition in Court. If the trustee fails to comply, petition the New Hampshire Probate Court for relief under RSA 564-B:1008.
- Seek Removal of the Trustee. The court can remove a trustee for serious breaches of duty (RSA 564-B:1008).
- Pursue Other Remedies. The court may order the trustee to restore misused funds or pay damages (RSA 564-B:1007).
Common Court Remedies
- Removal of the trustee
- Monetary surcharge against the trustee
- Appointment of a successor trustee
- Injunctive relief to prevent further misuse
Helpful Hints
- Keep records of communications, account statements, and trust documents.
- Act quickly; delays can weaken your case.
- Consult a probate attorney familiar with New Hampshire trust law.
- Consider mediation to resolve disputes faster and at lower cost.
- Verify all court filings meet local probate rules and deadlines.
Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a qualified attorney to address your specific situation.