14-10706. Removal of trustee

A. The settlor, a cotrustee or a beneficiary may request the court to remove a trustee or a trustee may be removed by the court on its own initiative.

B. The court may remove a trustee if:

1. The trustee has committed a material breach of trust.

2. Lack of cooperation among cotrustees substantially impairs the administration of the trust.

3. Because of unfitness, unwillingness or persistent failure of the trustee to administer the trust for the benefit of the beneficiaries, the court determines that removal of the trustee best serves the interests of the beneficiaries.

4. There has been a substantial change of circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust and a suitable cotrustee or successor trustee is available.

C. Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order appropriate relief under section 14-11001, subsection B as may be necessary to protect the trust property or the interests of the beneficiaries.

D. On petition of a beneficiary who is also a settlor of a trust, including a beneficiary for whom a guardian or conservator has been appointed, the court shall substitute a trustee and appoint a successor if the substitution is in the best interest of the beneficiary.  The trustee and the trustee's attorney may be compensated from the trust for defending against a petition for substitution only for the amount ordered by the court and on petition by the trustee or the trustee's attorney.  When substituting a trustee and appointing a successor, the court may appoint an individual nominated by the beneficiary if the beneficiary has, in the opinion of the court, sufficient mental capacity to make an intelligent choice.