When a sibling or another trustee is mishandling a parent’s trust, a lawsuit is only one of your options. You can begin with the trust document, a family conversation, and a written request for information. If the trustee agrees to step aside, or the trust itself gives someone the power to replace the trustee, a signed agreement or mediation can make the change without a court case. If those steps fail, a Minnesota court may remove a trustee on one of four grounds in Minn. Stat. § 501C.0706, and it may protect the trust property while it decides.
Minnesota’s rules here come from statute. The Minnesota Trust Code, chapter 501C, incorporated many provisions of the Uniform Trust Code in 2015, and Minnesota appellate courts apply it. This page is written for an adult child who is a beneficiary of a parent’s Minnesota trust, whether the parent is living or has died, and for a sibling serving as cotrustee. A parent’s probate estate follows different rules, covered near the end. For how I handle these disputes, see my trust and estate litigation page.
What Should You Do First When a Parent’s Trust Seems Mishandled?
I suggest getting the trust document and every amendment, finding out whether the trust is revocable, and asking the trustee your questions in writing. Those steps cost little and decide which options are open to you.
- When someone wrote to me about a sibling serving as trustee of a parent’s trust, I suggested gathering the trust document with every amendment, the deed to the home, and the power of attorney. Those documents decide who can act. The trust names the trustee, may name a successor, and may give someone a way to remove or replace a trustee without a court.
- Different rules apply “While a trust is revocable” under Minn. Stat. § 501C.0604, as the section on a living parent below explains.
- For an irrevocable trust, Minn. Stat. § 501C.0813, paragraph (a), provides: “Unless unreasonable under the circumstances, a trustee shall promptly respond to a beneficiary’s request for information related to the administration of an irrevocable trust.” I suggest a short, polite letter or email asking for a list of the trust’s assets and recent statements, because the trustee’s answer or silence becomes the record any later step rests on. For what a trustee should be keeping, see what a trustee must report and keep.
- I suggest writing down what you asked, when, and how the trustee responded, along with any sale, payment, or use of trust property you learn about, because a court or mediator will want dates.
A report from the trustee that adequately discloses a potential claim can start a limitations period, described in the petition section below, so I suggest reading every report the trustee sends when it arrives. A separate rule applies when the trust ends or partly ends. Under Minn. Stat. § 501C.0817, paragraph (a), “Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection within 30 days after the proposal was sent but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection.” I suggest checking the current text of the statute before relying on that period.
How Do Your Options Compare, From a Family Conversation to a Court Petition?
Your options run from a family conversation and a written request, through an agreement for the trustee to step aside or a mediation, to a court petition to require an accounting or to remove the trustee. I suggest starting at the lowest step that fits your facts, because each step up costs the family more time and money.
One person asked me how long removing a sibling trustee would take. I explained that if the trust lets the person act, or the sibling agrees to step aside, it can often be done with signed documents and no court case. That is much faster than asking a judge. If a judge has to remove the trustee, it takes longer and costs more.
- A family conversation. It fits a trustee who is overwhelmed, slow, or unsure of the duties. It costs time and patience. The risk is that a trustee who is taking money uses the warning to move assets or withhold records.
- A written request for information or an accounting. It fits any irrevocable trust whose trustee has not been reporting. It costs a letter. The risk is delay, and a report the trustee sends in reply can start a limitations period.
- The trust’s own removal terms. It fits a trust that gives a named person or the beneficiaries a power to remove or replace a trustee. It costs signed documents. The risk is a step that misses the procedure the trust requires.
- An agreement for the trustee to step aside. It fits a trustee who no longer wants the job. A trustee may resign “upon notice to the qualified beneficiaries, the settlor, if living, and all cotrustees” under Minn. Stat. § 501C.0705, paragraph (a). The family can record the change in a nonjudicial settlement agreement under Minn. Stat. § 501C.0111. It costs a negotiated agreement. The risk is a deal that settles more than the family intended, because such an agreement can cover “liability of a trustee for an action relating to the trust.”
- Mediation. A neutral mediator helps family members negotiate. It fits siblings who still talk but cannot agree. It costs the mediator’s fee and each side’s preparation. The risk is time spent without a deal. An agreement reached in mediation can be recorded as a nonjudicial settlement agreement, described below. Under Minn. Stat. § 572.35, subdivision 1, “A mediated settlement agreement is not binding unless” it “contains a provision stating that it is binding” and the written advisements that subdivision lists, or “the parties were otherwise advised of the conditions in clause (1).” For how a session runs, see what to expect during a mediation.
- A petition to require an accounting. Under Minn. Stat. § 501C.0202, clause (8), a court proceeding may ask the court “to require a trustee to account.” It fits a trustee who will not report. It costs a court filing and attorney fees. The risk is a public court record and a deeper family rift.
- A petition to remove the trustee. It fits the four grounds explained below. Two turn on a serious breach of trust or a lack of cooperation among cotrustees that substantially impairs the administration of the trust. The other two turn on unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, or on a substantial change in circumstances or a request by all of the qualified beneficiaries. It costs the most of these options. The risk is that the court has discretion and may decline, that a fee award under Minn. Stat. § 501C.1004 is paid from the trust every beneficiary shares, and that the trustee may answer with counterclaims in trust disputes.
A nonjudicial settlement agreement, whether reached at the kitchen table or in mediation, is made by the “interested persons,” which Minn. Stat. § 501C.0111, paragraph (a), defines as “persons whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court.” Under paragraph (b)(4), it may cover “the resignation or appointment of a trustee and the determination of a trustee’s compensation.” Paragraph (c) sets the limit: “A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court under this chapter or other applicable law.” Under paragraph (d), “Any interested person may request that the court approve a nonjudicial settlement agreement.”
Other professionals can help at several steps. A CPA or forensic accountant can read the trustee’s statements and trace money. A mediator runs the mediation. An appraiser can value a home or business interest the trust holds. A bank or trust company can serve as successor trustee when the family wants a neutral one. A court fight that a family expects to bring closure can instead keep the dispute going and leave everyone frustrated, stressed, and poorer for the fees.
What Changes While Your Parent Is Still Alive?
While a trust is revocable, the trustee’s duties run to your parent. Under Minn. Stat. § 501C.0103, paragraph (n), “revocable” means “revocable by the settlor without the consent of the trustee or a person holding an adverse interest.” Minn. Stat. § 501C.0604 provides: “While a trust is revocable, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor.” During that time, a concern about the trustee runs through your parent, who as settlor may petition the court to remove a trustee under Minn. Stat. § 501C.0706, paragraph (a).
A power of attorney reaches the trust only as far as the statute and the documents allow. As I told one person holding a parent’s power of attorney, whether it covers a home held in a trust depends on what the trust and the power of attorney each say. Under Minn. Stat. § 501C.0602, paragraph (e), “A settlor’s powers with respect to revocation, amendment, or distribution of trust property may be exercised by an agent under a power of attorney only to the extent expressly authorized by the terms of the trust.” If the trust is silent, the agent needs a power of attorney, “other than a statutory short form power of attorney executed in accordance with section 523.23, that expressly authorizes the agent to exercise the settlor’s powers with respect to revocation, amendment, or distribution of property.” Paragraph (f) adds: “A conservator of the settlor may exercise a settlor’s powers with respect to revocation, amendment, or distribution of trust property only with the approval of the court supervising the conservatorship.” Those paragraphs address revocation, amendment, and distribution, so I suggest reading the trust’s own removal and successor terms for any change of trustee.
Acting for your parent in a dispute with the trustee falls under a separate rule. Under Minn. Stat. § 501C.0303, paragraph (a), “an agent having authority to act with respect to the particular question or dispute may represent and bind the principal.” The same paragraph provides that “a conservator may represent and bind the estate that the conservator controls.” Both apply “[t]o the extent there is no conflict of interest between the representative and the person represented.” Under Minn. Stat. § 501C.0201, paragraph (b), “a fiduciary representing an interested person” is also an interested person who may petition the court. Whether your power of attorney gives authority over a dispute with the trustee, and whether your own interest as a beneficiary is a conflict, turn on the documents and the facts.
Minnesota’s adult protection law offers a separate route when you believe someone is taking a vulnerable parent’s money. Minn. Stat. § 626.557, subdivision 3, provides: “A mandated reporter who has reason to believe that a vulnerable adult is being or has been maltreated, or who has knowledge that a vulnerable adult has sustained a physical injury which is not reasonably explained shall immediately report the information to the common entry point.” It adds: “A person not required to report under the provisions of this section may voluntarily report as described above.” Under Minn. Stat. § 626.5572, subdivision 15, the maltreatment a report covers includes “financial exploitation as defined in subdivision 9.” Subdivision 9 reaches, among other conduct, a person who, “In breach of a fiduciary obligation recognized elsewhere in law,” “engages in unauthorized expenditure of funds entrusted to the actor by the vulnerable adult.” Whether your parent is a “vulnerable adult” turns on that statute’s definition.
What Grounds Does Minnesota Law Give for Removing a Trustee?
Minnesota gives a court four separate grounds to remove a trustee, and a petitioner needs to prove only one. Three turn on the trustee’s conduct or capacity. The fourth turns on changed circumstances or a unanimous request from the qualified beneficiaries, plus findings that removal “best serves the interests of all of the beneficiaries,” that it “is not inconsistent with a material purpose of the trust,” and that a suitable replacement is available.
Under Minn. Stat. § 501C.0706, paragraph (b), “The court may remove a trustee if” any of these is shown:
- Serious breach. “the trustee has committed a serious breach of trust.”
- Cotrustee deadlock. “lack of cooperation among cotrustees substantially impairs the administration of the trust.”
- Unfitness or poor administration. “the court determines that removal of the trustee best serves the interests of the beneficiaries because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively.”
- Changed circumstances or a unanimous request. “there has been a substantial change in 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.”
The grounds stand alone. In In re Otto Bremer Trust, No. A22-0906 (Minn. Feb. 7, 2024), the Minnesota Supreme Court called them “separate and independent” and affirmed a removal on the serious-breach ground without deciding the unfitness ground. The statute says “may,” so proving a ground permits removal and does not require it. The fourth ground requires no fault by the trustee, and it is the only ground that requires a suitable cotrustee or successor to be available. Under Minn. Stat. § 501C.0103, paragraph (m), the definition of a qualified beneficiary has no exception for a beneficiary who is also the trustee. When a sibling trustee also shares in the trust, a removal “requested by all of the qualified beneficiaries” may therefore need that sibling’s request too.
What Counts as a Serious Breach of Trust in Minnesota?
Under Minn. Stat. § 501C.1001, paragraph (a), “A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.” A serious breach can be a single act that causes significant harm or involves flagrant misconduct, or a series of smaller breaches that together justify removal. Disagreement with the trustee is not enough unless it interferes with how the trust is run.
Chapter 501C does not define “serious,” so the Minnesota Supreme Court in Bremer took guidance from the Uniform Trust Code’s official comment: “[a] serious breach of trust may consist of a single act that causes significant harm or involves flagrant misconduct,” or of smaller breaches considered together. The court held that a serious breach “may involve a series of smaller breaches, none of which alone would justify removal, but which do justify removal when considered together.” The series in Bremer involved a trustee of a large charitable trust who used trust staff and resources for his own purposes, “used his position of power to intimidate a grantee on matters unrelated to any charitable purpose,” and “affirmatively lied about having a named successor.” The small dollar value of the personal use did not excuse it.
Two duties figured in the Bremer removal: loyalty and information. Minn. Stat. § 501C.0802, paragraph (a), provides: “A trustee shall not place the trustee’s own interests above those of the beneficiaries.” Under paragraph (c), a transaction in trust property with “the trustee’s descendants, siblings, parents, or their spouses” is presumed to be affected by a conflict, which matters when a sibling serves as trustee. The duty to inform, in Minn. Stat. § 501C.0813, is covered in the first-steps section above.
Friction alone does not carry a petition. In the same case, the Court of Appeals quoted the Restatement (Second) of Trusts: “Mere friction between the trustee and the beneficiary is not a sufficient ground for removing the trustee unless such friction interferes with the proper administration of the trust.” In re Otto Bremer Trust, 984 N.W.2d 888 (Minn. App. 2023), aff’d (Minn. 2024). Courts also weigh who picked the trustee and whether a problem has been fixed. The Supreme Court in Bremer accepted as a correct statement the Restatement (Third) of Trusts rule that “[t]he court will less readily remove a trustee named by the settlor than one appointed by a court,” though that rule did not help a trustee the settlor had not chosen. Matter of Will of Gershcow, 261 N.W.2d 335 (Minn. 1977) was decided under an earlier Minnesota trust statute. The court upheld a refusal to remove a trustee who had not filed annual accounts for years but had since filed them. It called the lapses “inconsequential deviations from legal requirements in the past.” Removal is also one remedy among several; a beneficiary may seek repayment or remedies for a trustee’s breach of fiduciary duty such as a constructive trust. When the real disagreement is over what a trust term means, a petition to interpret a trust asks the court that question directly.
How Does a Trustee Removal Petition Work in a Minnesota District Court?
A removal case starts with a petition in district court by the settlor, a cotrustee, or a beneficiary. The petition must say whether it invokes the court’s in rem or in personam jurisdiction, the court sets a hearing by order, and the petitioner gives notice to the current trustees and qualified beneficiaries.
Minn. Stat. § 501C.0706, paragraph (a), provides: “The settlor, a cotrustee, or a beneficiary may petition the court to remove a trustee, or a trustee may be removed by the court on its own initiative.” “Beneficiary” reaches further than the people receiving checks today. Under Minn. Stat. § 501C.0103, paragraph (c), it includes a person who “has a present or future beneficial interest in a trust, vested or contingent.” A child who inherits only after a parent’s death has a future interest and may petition; the petitioner in Gershcow was a remainder beneficiary. While a trust is revocable, though, Minn. Stat. § 501C.0604 provides that “rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor,” as the living-parent section above explains. For the full set of rights that come with that status, see the rights of beneficiaries in a Minnesota trust.
A sibling who serves as cotrustee has a duty, not only standing. Minn. Stat. § 501C.0703, paragraph (g), requires each trustee to exercise reasonable care to “prevent a cotrustee from committing a serious breach of trust” and to “compel a cotrustee to redress a serious breach of trust.”
The trust instrument may add its own path. Under Minn. Stat. § 501C.0105, paragraph (a), “Except as otherwise provided in the terms of a trust, this chapter governs the duties and powers of a trustee, relations among trustees, and the rights and interests of a beneficiary.” The trust terms cannot displace the trustee’s duty “to act in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries” under paragraph (b)(2), or “the power of the court to take such action and exercise such jurisdiction as may be necessary in the interests of justice” under paragraph (b)(11). A trust may also penalize a beneficiary who files, so I suggest reading about no-contest clauses in Minnesota wills and trusts before any petition.
The court steps, in order:
- Under Minn. Stat. § 501C.0207, paragraph (a)(2), venue for a trust that is not created by a will lies in the county where a trustee with custody of trust assets resides or has a trust office. It may instead lie where the trust’s principal place of administration is or will be, with court approval. Under paragraph (a)(1), a trust created by will may also be heard in the county “where the will was probated,” and under paragraph (a)(3), a trust holding real property may be heard “in the district court for any county in which the real estate is situated.” If a Minnesota court has already handled the trust, paragraph (b) of that section controls: “a petition under sections 501C.0201 to 501C.0206 must be filed in the court in which the prior proceedings were held, absent approval from the prior court.”
- Under Minn. Stat. § 501C.0201, “An interested person may petition the district court and invoke its jurisdiction as provided in sections 501C.0201 to 501C.0208 for those matters specified in section 501C.0202.” Paragraph (c) adds: “The petition shall specify whether the interested person is invoking the jurisdiction of the district court as an in rem proceeding or as an in personam proceeding.” With no designation, the proceeding is in rem. The choice has a lasting effect: in rem, “the district court shall retain jurisdiction as a proceeding in rem, until jurisdiction is transferred to another court or terminated by court order,” while in personam, “the trust is not subject to continuing jurisdiction unless otherwise ordered by the court.”
- For an in rem petition, the court sets a hearing by order under Minn. Stat. § 501C.0203, subdivision 1. Notice then goes out “by publishing, at least 20 days before the date of the hearing, a copy of the order for hearing one time in a legal newspaper for the county in which the petition is filed.” It also goes out “by mailing, at least 15 days before the date of the hearing, a copy of the order for hearing to those current trustees and qualified beneficiaries of the trust whose identity is known and whose location is known or reasonably ascertainable to the petitioner after making reasonable efforts to locate such persons.” For an in personam petition, subd. 2 provides: “Notice of the judicial proceeding must be given by an interested person to the current trustees and the qualified beneficiaries in the same manner as set forth under Rule 4 of the Rules of Civil Procedure by serving a copy of the order for hearing and the petition at least 15 days prior to the hearing unless waived in writing by the current trustees and the qualified beneficiaries.” Both subdivisions add: “In the case of a qualified beneficiary who is a minor or an incapacitated person as defined in section 524.5-102, notice of the judicial proceeding shall also be given to any representative person acting on behalf of the qualified beneficiary in accordance with the provisions of sections 501C.0301 to 501C.0305 who is known to the petitioner.” I suggest checking the current text of the statute for these notice periods before a hearing is set.
One timing rule matters before any of these steps. Minn. Stat. § 501C.1005, paragraph (a), provides: “A beneficiary may not commence a judicial proceeding against a trustee more than three years after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim.” Under paragraph (b), “A report adequately discloses the existence of a potential claim if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.” Paragraph (c) provides: “If paragraph (a) does not apply, a judicial proceeding by a beneficiary against a trustee must be commenced within six years after the first to occur of: (1) the removal, resignation, or death of the trustee; (2) the termination of the beneficiary’s interest in the trust; or (3) the termination of the trust.” The periods quoted here are the statute’s words as read for this page; check the current text of the statute before relying on them. The time to contest a trust itself is a separate limit, covered in deadlines to contest a will or trust.
Two rules tie into those periods. Under Minn. Stat. § 501C.0301, paragraph (e), “The settlor or another person, including one or more beneficiaries of the trust, designated by the terms of the trust instrument to receive information from the trustee concerning the administration of the trust and the material facts necessary to protect the beneficiaries’ interests in the manner described in section 501C.0813, paragraph (b), shall be a representative of the beneficiaries with respect to the limitations period on judicial proceedings against a trustee under section 501C.1005, paragraph (a).” And the same periods govern voiding a conflicted transaction: under Minn. Stat. § 501C.0802, paragraph (b)(3), the transaction is not voidable if “the beneficiary did not commence a judicial proceeding within the time allowed by section 501C.1005.”
How Can Trust Assets Be Protected While a Removal Petition Is Pending?
A Minnesota court does not have to wait for the final decision to protect the trust. Under Minn. Stat. § 501C.0706, paragraph (c), “Pending a final decision on a petition to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order such appropriate relief under section 501C.1001, paragraph (b), as may be necessary to protect the trust property or the interests of the beneficiaries.”
The list in Minn. Stat. § 501C.1001, paragraph (b), begins: “To remedy a breach of trust that has occurred or may occur, the court may” order any of these, among others:
- compel the trustee to perform the trustee’s duties;
- enjoin the trustee from committing a breach of trust;
- order the trustee to account;
- “appoint a special fiduciary to take possession of the trust property and administer the trust”;
- suspend the trustee; or
- “subject to section 501C.1012, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds.”
Separately, Minn. Stat. § 501C.0704, paragraph (e), provides: “Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust.” In the Bremer litigation, the district court granted part of the Attorney General’s request for interim equitable relief before trial, and the Court of Appeals affirmed that ruling. I suggest asking for interim relief with the petition when trust money is moving, because the statute lets the court act before the hearing on removal. For how Minnesota courts handle emergency orders in other disputes, see temporary injunctions in Minnesota.
How Is a Successor Trustee Chosen After a Removal?
If a cotrustee remains, the vacancy need not be filled. If no trustee remains, Minnesota sets the order for a noncharitable trust: the person the trust names, then a person all qualified beneficiaries agree on, then a person chosen in a nonjudicial settlement agreement, then the court’s appointee.
Minn. Stat. § 501C.0704, paragraph (b), provides: “If one or more cotrustees remain in office, a vacancy in trusteeship need not be filled. A vacancy in a trusteeship must be filled if the trust has no remaining trustee.” Paragraph (c) sets the priority:
- “by a person designated in the terms of the trust to act as successor trustee”;
- “by a person appointed by unanimous agreement of the qualified beneficiaries”;
- “by a person appointed pursuant to a nonjudicial settlement agreement as defined in section 501C.0111”; or
- “by a person appointed by the court.”
I suggest identifying a willing successor before filing, because the fourth removal ground requires the court to find “a suitable cotrustee or successor trustee is available,” and on any ground the court can compare the trustee with the replacement. In Gershcow, the trial court refused removal partly because “it would be more expensive to have the Bank serve as Trustee.”
The handover has its own rules in Minn. Stat. § 501C.0707. Until the property is delivered, unless a cotrustee remains or the court orders otherwise, “a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.” The former trustee “shall proceed expeditiously to deliver the trust property within the trustee’s possession to the cotrustee, successor trustee, or other person entitled to it.” And “Title to all trust property shall be owned by and vested in any successor trustee without any conveyance, transfer, or assignment by the prior trustee,” so the successor does not need the removed trustee to sign a deed.
Who Pays the Attorney Fees in a Minnesota Trustee Removal Case?
The court decides, and an award under the trust code’s fee section comes from the trust. Under Minn. Stat. § 501C.1004, “In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney fees, to any party from the trust that is the subject of the judicial proceeding.”
The trustee’s own defense costs follow a different rule. Lund v. Lund, 924 N.W.2d 274 (Minn. App. 2019) was a dispute among siblings whose trusts held interests in family grocery businesses. The Court of Appeals agreed with an amicus brief from the Minnesota State Bar Association’s probate and trust law section. It stated that “section 501C.1004 governs a beneficiary or third party’s ability to recover attorney fees from trust assets.” A trustee’s reimbursement instead falls under Minn. Stat. § 501C.0709, which covers “expenses that were properly incurred in the administration of the trust,” and the common-law standard that “focuses on whether the fees are reasonable and incurred in good faith.” The court reversed a fee denial that had applied the wrong section and remanded.
Two consequences follow for a beneficiary. A successful petition can still leave fees unpaid, because the award is discretionary. And when a trustee is found to have breached the trust, Minn. Stat. § 501C.1001, paragraph (b)(8), lets the court “reduce or deny compensation to the trustee,” which a petition can request alongside removal.
What If It Is a Parent’s Probate Estate, Not a Trust?
When a parent’s estate goes through probate, a personal representative, often called an executor, administers it, and a different statute governs removal. Under Minn. Stat. § 524.3-611, paragraph (a), “A person interested in the estate may petition for removal of a personal representative for cause at any time.”
Paragraph (b) lists the causes: “Cause for removal exists when removal is in the best interests of the estate, or if it is shown that a personal representative or the person seeking the personal representative’s appointment intentionally misrepresented material facts in the proceedings leading to the appointment, or that the personal representative has disregarded an order of the court, has become incapable of discharging the duties of office, or has mismanaged the estate or failed to perform any duty pertaining to the office.”
Notice of the petition limits what the personal representative may do. Paragraph (a) provides: “Except as otherwise ordered as provided in section 524.3-607, after receipt of notice of removal proceedings, the personal representative shall not act except to account, to correct maladministration or preserve the estate.” For common examples and the remedies, see executor misconduct in Minnesota.
Can we have our sister removed as trustee because she will not tell us anything?
Possibly, for an irrevocable trust. Under Minn. Stat. § 501C.0813, that trustee must keep the qualified beneficiaries reasonably informed and, unless unreasonable under the circumstances, promptly answer information requests. An express trust provision may lift that duty while the trust’s terms require keeping the settlor or another person reasonably informed. A beneficiary may waive the right; under paragraph (c), “A beneficiary may withdraw any such waiver previously given. Any waiver or withdrawal of a waiver must be made by notice delivered to the trustee.” Otto Bremer Trust (Minn. 2024) counted a breach of this duty among breaches justifying removal.
Can the beneficiaries replace a trustee just because all of them want someone new?
Possibly. Under Minn. Stat. § 501C.0706, a request by all of the qualified beneficiaries is a ground if the court also finds that removal best serves the interests of all of the beneficiaries, is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available. In Lund v. Lund, the Court of Appeals held that with that request, “a substantial change in circumstances is not required.” Because Minn. Stat. § 501C.0103 defines a qualified beneficiary with no exception for a trustee, a sibling trustee who shares in the trust may need to join.
Does the trust reimburse our legal bills if our petition succeeds?
It may, but it is not automatic. Under Minn. Stat. § 501C.1004, in a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney fees, to any party from the trust. In Lund v. Lund, the Court of Appeals, agreeing with an amicus brief, stated that this section governs a beneficiary’s fee request. Because an award under this section comes out of the trust, the trust’s assets bear the cost.
Does a trustee who resigns escape liability for past mistakes?
Not by resigning alone. Under Minn. Stat. § 501C.0705, any liability of a resigning trustee, or of any sureties on the trustee’s bond, for acts or omissions of the trustee is not discharged or affected by the resignation. A trustee may resign on notice to the qualified beneficiaries, the settlor if living, and all cotrustees, or with court approval, and by either route that liability “is not discharged or affected by the trustee’s resignation.” A signed nonjudicial settlement agreement differs: under Minn. Stat. § 501C.0111, it may cover “liability of a trustee for an action relating to the trust.”
What if the trustee keeps spending trust money while the court decides?
You can ask the court for interim relief in or with the petition. Under Minn. Stat. § 501C.0706, pending a final decision on a removal petition, the court may order relief listed in Minn. Stat. § 501C.1001 that is necessary to protect the trust property or the interests of the beneficiaries. That list includes an order barring a breach, an order to account, appointing a special fiduciary to take possession of the trust property, and suspending the trustee.
Should we read the trust for a no-contest clause before filing?
Yes. A no-contest clause’s wording decides what conduct it reaches. In In re Gus A. Chafoulias Revocable Trust, No. A25-0665 (Minn. App. Feb. 23, 2026) (nonprecedential), the Court of Appeals affirmed that a daughter’s petition asking whether the clause was valid, and whether petitioning to remove her brother as trustee would trigger it, triggered the clause and disinherited her. The court declined to extend to trusts the probable-cause exception Minn. Stat. § 524.2-517 gives wills. I suggest reading the clause and the trust’s removal terms before any filing, including a request to interpret the clause, and checking whether the Supreme Court has since ruled.
Next Steps When a Parent’s Trust Is Mishandled
I suggest starting with the trust document and a written request for information, and moving up only as far as the trustee’s response requires, because each step up costs more. The next steps are a family conversation, an agreement for the trustee to step aside, and mediation, and a petition to require an accounting or to remove the trustee comes last. While your parent is alive and the trust can be revoked, the trustee’s duties run to your parent. A court may protect trust assets while it decides, and a fee award under Minn. Stat. § 501C.1004 comes from the trust.
If a parent’s trust or estate is being mishandled and you want to know which option fits your facts, email [email protected] with a brief description, and I can start an intake and conflict check before you send any confidential documents. More on how I handle these cases is on my trust and estate litigation page.