Removal, resignation, and appointment of trustees
Sec. 29. (a) A trustee may be removed as follows:
(1) By the court.
(2) By the person, if any, who by the terms of the trust is
authorized to remove the trustee.
(3) Unless the terms of the trust instrument provide otherwise,
by a beneficiary of the trust whose petition is granted by the
court under subsection (d).
(b) Unless the terms of the trust requires a different time, the
trustee may resign:
(1) if the trustee gives at least thirty (30) days notice to:
(A) the qualified beneficiaries;
(B) the settlor, if living; and
(C) all cotrustees; or
(2) with the approval of the court.
In approving a resignation, the court may issue orders and impose
conditions reasonably necessary for the protection of the trust
property. 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 trustee's resignation.
(c) For good cause shown, the court may at any time appoint a
temporary trustee for such period of time, and to perform such duties,
as the court may direct.
(d) This subsection applies only to a trust executed after June 30,
1996. A beneficiary of a trust may petition the court for the removal
of a corporate trustee if there has been a change in control of the
corporate trustee after the date of the execution of the trust. The
court may remove the corporate trustee if the court determines the
removal is in the best interests of all the beneficiaries of the trust. For
purposes of this subsection a change in control of the corporate
trustee occurs whenever a person or group of persons acting in
concert acquires the beneficial ownership of an aggregate of at least
twenty-five percent (25%) of the outstanding shares of voting stock
of:
(1) a trustee; or
(2) a corporation controlling a trustee;
after June 30, 1996.
(e) A trustee who has resigned or been removed shall
expeditiously deliver the trust property within the trustee's
possession to the cotrustee, successor trustee, or other person entitled
to the trust property. A trustee who has resigned or been removed has
the duties of trustee and the powers necessary to protect the trust
property:
(1) unless a cotrustee remains in the office of trustee or the
court orders otherwise; and
(2) until the trust property is delivered to a successor trustee or
other person entitled to the trust property.
(Formerly: Acts 1971, P.L.416, SEC.4.) As amended by
P.L.199-1996, SEC.1; P.L.165-2002, SEC.6; P.L.238-2005, SEC.38.
Last modified: May 27, 2006