Disclaimer: This article is for educational purposes only and is not legal advice.
Detailed Answer
Under Massachusetts law, trustees owe strict fiduciary duties to beneficiaries. These duties include loyalty, impartiality, prudent administration, and following the trust’s terms (M.G.L. c.203E, §405). Misuse of trust funds—such as self-dealing, unauthorized loans, or personal use of assets—constitutes a breach of these duties. Beneficiaries have multiple tools to challenge a trustee’s misconduct in Probate and Family Court:
1. Request a Formal Accounting
Massachusetts Uniform Trust Code grants beneficiaries the right to request a full accounting. Under M.G.L. c.203E, §813, a trustee must provide records of all receipts, disbursements, investments, and distributions. If the trustee refuses or provides incomplete information, you can petition the court to compel production of documents and force a hearing on the trust’s financial status.
2. Petition for Removal of the Trustee
If a trustee’s breach is serious, such as misappropriating funds or ignoring court orders, beneficiaries can ask the court to remove that trustee. Under M.G.L. c.203E, §706, the court may remove a trustee upon finding a serious breach of trust, lack of cooperation among multiple trustees, unfitness, or substantial harm to trust administration.
3. File a Surcharge Action for Breach of Trust
A surcharge action seeks to hold the trustee financially accountable for losses caused by improper conduct. You can file a breach-of-trust lawsuit under M.G.L. c.203E, §813 to recover misused funds plus any lost investment gains. The court may order restitution of principal, interest, and legal costs.
4. Seek Injunctive or Declaratory Relief
Beneficiaries can request a court order to freeze trust assets, prevent further misapplication of funds, or clarify trust terms. The Probate and Family Court can issue injunctive relief or a declaratory judgment interpreting ambiguous provisions, limiting trustee powers, or appointing a neutral co-trustee.
Helpful Hints
- Review the trust document carefully to understand trustee powers and distribution provisions.
- Keep thorough records of all communications, transactions, and suspected breaches.
- Act promptly—Massachusetts imposes time limits on breach-of-trust claims.
- Consider mediation before litigation to save time and costs.
- Consult a licensed attorney experienced in Massachusetts trust disputes for procedural guidance.