Question
In a testamentary trust, Alanzo Lopez named his friend, Ricardo LaPalma, trustee of substantial property placed in trust for the benefit of Alanzo's wife, Maria,
- In a testamentary trust, Alanzo Lopez named his friend, Ricardo LaPalma, trustee of substantial property placed in trust for the benefit of Alanzo's wife, Maria, and his sister, Yolanda. Hostility existed between Ricardo and Maria long before the trust was created, and it became worse soon after Alanzo's death, when the trust became active. Alanzo gave Ricardo broad discretion in distributing trust income, and when Ricardo distributed a much greater percentage of the trust's annual income to Yolanda than to Maria, Maria became outraged. She demanded that Ricardo be removed as an unsuitable trustee because of his act of disloyalty by favoring one beneficiary over another.
A. Is hostility between a trustee and beneficiary a valid reason for the removal of a trustee?
B. If there were five beneficiaries in the trust and three were pleased with the trustee's actions and two were incensed and wanted the trustee removed, should the "majority rule" apply to this decision?
C. Read and compare the cases Matter of Brecklein's Estate, 6 Kan.App.2d 1001, 637 P.2d 444 (1981), and Edinburg v. Cavers, 22 Mass. App. Ct. 212, 492 N.E.2d 1171 (1986). What are the circumstances a court should consider before deciding a request for removal of a trustee based on hostility between the trustee and a beneficiary?
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