Disclaimer: This article provides general information only and is not legal advice.
Detailed Answer
Maine enacted the Uniform Trust Code under Title 18-B of the Maine Revised Statutes. It sets out protections and enforcement tools for beneficiaries when a trustee misuses trust assets. Below are common legal steps beneficiaries can take under Maine law.
1. Request an Accounting
Under 18-B M.R.S. § 1007, beneficiaries may demand a trustee produce a written accounting of all trust assets, liabilities, receipts, and disbursements. Send a formal written notice. If the trustee fails to comply within 60 days, you can file a petition in probate court to compel an accounting. 18-B M.R.S. § 1007
2. Petition for Breach of Trust
If the trustee misappropriates funds or breaches any fiduciary duty, you may petition the court for relief under 18-B M.R.S. § 1033. The court can order the trustee to repay misused funds, pay damages, and cover legal costs.
3. Seek Trustee Removal
Under 18-B M.R.S. § 1008, a court may remove a trustee for misconduct, including misallocation or mismanagement of trust property. You must show evidence of wrongdoing and that removal serves the trust’s best interests.
4. Obtain a Surcharge
If you suffer financial loss due to the trustee’s actions, the court can impose a surcharge to restore the trust under 18-B M.R.S. § 1033. This remedy forces the trustee to reimburse any loss to the trust.
5. Petition for Modification or Termination
In cases where trustee misconduct makes the trust unworkable, beneficiaries may ask the court to modify or terminate the trust under 18-B M.R.S. § 411. This remedy suits situations where changing or ending the trust better serves all parties.
Helpful Hints
- Document all communications, account statements, and trust reports.
- Keep copies of bank records, receipts, and correspondence.
- Consult the local probate court clerk for filing requirements.
- Consider mediation or alternative dispute resolution before litigation.
- Act promptly—Maine’s six-year statute of limitations may apply. See 14 M.R.S. § 752.