Removal of Iowa Trustee Restricted
A recent ruling from the Iowa Court of Appeals reinforced the difficult challenge to have a trustee of a trust removed. With a contentious history between the beneficiaries and the trustee which included a fight over trustee and attorney fees, the Iowa Court of Appeals refused to remove the trustee as requested. The Court initially indicated that the trustee fees were reasonable, even though the trustee did not provide an itemization of services provided. With the court not finding excessive fees as approved by the district court, the conduct of the trustee did not rise to a level necessary to remove the trustee.
The moral of the story? When you select a trustee as part of your estate plan, place some serious thought on who will fill that role as it can be difficult, if not impossible, to remove the trustee without cause. It is also prudent to be sure to understand the bank's trustee fee schedule and to discuss the plan with the beneficiaries.
