In re Estate of Cathleen Bass Skinner

Summary

The North Carolina Supreme Court reviewed the removal of Mark Skinner as guardian of the estate and trustee of a special needs trust. The Court addressed the appropriate standard of appellate review and concluded that the Court of Appeals erred by reversing the removal order. The case involved alleged self-dealing, misuse of trust assets, and breach of fiduciary duties.

Holdings

1. Review of an assistant clerk's removal order is limited to errors of law and abuse of discretion. Findings supported by competent evidence are binding, legal conclusions are reviewed de novo, and the discretionary removal decision will be disturbed only when manifestly unsupported by reason or so arbitrary that it could not have resulted from a reasoned decision.
2. The assistant clerk's unchallenged findings supported removal because Skinner wasted and mismanaged the ward's assets, converted trust assets to his own use, violated fiduciary duties, and committed a serious breach of trust. The removal decision was not an abuse of discretion.
3. A guardian or trustee may be removed for breaching fiduciary duties even when the conduct is not shown to violate a specific provision of the written trust instrument. Compliance with the trust's express terms does not insulate a fiduciary from removal for waste, mismanagement, self-dealing, or other conduct contrary to the beneficiary's interests.

Questions Presented

1. What standard governs appellate review of an assistant clerk's order removing a guardian of an estate and trustee for breach of fiduciary duty?
2. Whether the assistant clerk's findings of fact and conclusions of law supported removal of Skinner as guardian and trustee.
3. Whether a guardian or trustee may be removed for breaching fiduciary duties and mismanaging assets even if the conduct does not violate a specific provision of the written trust instrument.

Disposition

reversed