New York’s Estates, Powers and Trusts Law (EPTL) § 7-2.6 establishes the authority of the Supreme Court over the resignation, suspension, or removal of trustees. This statute allows the court to oversee the proper administration of trusts by addressing situations where a trustee may wish to resign or where removal is necessary for the protection of the trust’s beneficiaries. The court’s powers under this statute extend to suspending or removing trustees who act against the trust’s interests, face financial instability, or otherwise demonstrate unsuitability. Additionally, the statute empowers the court to appoint successor trustees or, if necessary, to direct a receiver to manage the trust in the absence of an acting trustee. This provision ensures that trust assets are managed in alignment with the trust’s purpose, and provides a safeguard for beneficiaries when trustees fall short of their fiduciary obligations.
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§ 7-2.6 Resignation, suspension or removal of trustee
(a) Subject to the relevant provisions of the civil practice law and rules, the supreme court has power:
(1) On the application of a trustee, to accept his resignation and to discharge him on such terms as it deems proper.
(2) On the application of any person interested in the trust estate, to suspend or remove a trustee who has violated or threatens to violate his trust, who is insolvent or whose insolvency is imminent or apprehended or who for any reason is a person unsuitable to execute the trust.
(3) In case of the resignation or removal of a trustee, to appoint a successor trustee and, if there is no acting trustee, to cause the trust to be executed by a receiver or other officer under its direction. This section does not apply to a trust arising or resulting by implication of law, nor where other provision is made by law for the resignation, suspension or removal of a trustee or the appointment of a successor trustee.
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