What happens if trustees of a trust need to change?

Most trusts need at least two trustees to run the trust and use the powers that have been given to them. It would be unusual for a sole trustee to be able to run a trust by themselves long-term. It would also be unwise, as if all of the trustees have died there will be no one available to run the trust.

What happens in the event that a trustee dies?

If a trustee dies, it is common practice to replace them by appointing a new trustee. Generally the Settlement Deed will specify who is empowered to appoint a new trustee. Often, it may be the original settlor who created the trust who is allowed to appoint new trustees during their lifetime and, after that point in time, it will be the ongoing trustees who may select a new trustee. If there is no express power in the trust documentation, then normally the surviving trustee or trustees will be able to appoint a new trustee to act.

How are changes of trustees documented?

This is normally done by via a document called a Deed of Retirement and Appointment.

This would have to be signed by the ongoing trustee(s), the retiring trustee and any new trustees. It would be normal to put this in place, and then arrange for any assets to be transferred to the continuing trustee and the new trustees.

How can “rogue“ trustees be removed?

If a trustee is being difficult and creating problems for the other trustees, which are conflict with the trust in general, then it is best to check the trust instrument to see whether it is possible for that trustee to be removed by perhaps the settlor exercising a particular power to do so.