What is a trustee removal clause?
A trustee removal clause is an important part of inheritance law in Michigan. It is a provision in a trust document that allows for the removal of a trustee. This clause enables the trustor (the person who creates the trust) to remove a trustee from their position if they are not fulfilling their obligations or exhibit misconduct. The Michigan Trust Code outlines the procedure for removing a trustee. The court must first be petitioned to remove a trustee, who can either be removed for "cause" or "without cause". If the trustee is to be removed for cause, there must be sufficient evidence to prove that the trustee is indeed guilty of misconduct, such as fraud, neglect, or dishonesty. If the trustee is to be removed without cause, the court may consider factors such as the trustee’s age, health, or ability to manage the trust. A trustee removal clause is important because it helps to protect the trustor from a trustee who may be mismanaging the trust. It also helps to ensure that the trust is being managed in the best interests of the beneficiaries, as the trustor can remove a trustee if they do not believe they are acting appropriately. With a trustee removal clause, the trustor also has the ability to make changes if their circumstances change over time.
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