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Proper for Removed Trustee not to Turn Over Assets

Proper for Removed Trustee not to Turn Over Assets image

If a trustee is removed from his or her duties, the former trustee usually turns over any assets he holds to the new trustee as quickly as possible. However, there are exceptions to that rule.

Marsha Sinzheimer and her late husband had created a trust for her benefit. The trust documents required that there should be co-trustees, one a corporate trustee and one an individual trustee.

Sinzheimer’s son Andrew was appointed to take over as the individual trustee. However, before the former individual trustee stepped down, he exercised his authority to remove the corporate trustee and did not name another...