Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Beneficiaries who suspect a trustee has misused trust funds can seek relief under Utah’s Uniform Trust Code. They may petition the district court to remove the trustee, surcharge for losses, and request an accounting.
1. Petition for Removal of Trustee
Under Utah Code § 75-7-813, a beneficiary can petition the court to remove a trustee for serious breaches, such as misappropriation of assets or willful misconduct. The court reviews the evidence and may appoint a replacement trustee.
2. Demand for Accounting
Section 75-7-704 grants beneficiaries the right to request a formal accounting. The trustee must disclose all transactions, distributions, and fees related to the trust.
3. Claim for Breach of Trust and Surcharge
Beneficiaries may file a claim for breach of trust under § 75-7-814. The court can surcharge the trustee under § 75-7-815, recovering losses, interest, and attorney fees.
4. Filing the Petition
Beneficiaries start by filing a verified petition in the district court where the trust is administered. The petition must identify the trust, allege factual misuse, and specify requested relief. The court then issues a summons and allows the trustee to respond.
5. Evidence and Hearing
Gather bank statements, trust ledgers, and any related correspondence. Use discovery tools—such as depositions and document requests—to build your case. The court holds a hearing to decide if the trustee breached fiduciary duties.
Helpful Hints
- Review the trust instrument for any trustee removal clauses.
- Document suspected misuses immediately and retain original records.
- Keep copies of all financial statements and trustee communications.
- Consider mediation or settlement to resolve disputes efficiently and save costs.
- Consult a local attorney for advice tailored to your specific situation.