Why would a Big Bank Resign as trustee of a Trust Fund? Is this Common?

Answer 1

There may be a power to remove the corporate trustee. If so and if the holder of that power informed the bank of their intention to do so, the bank might want to avoid the taint of being removed and simply resign instead.

This is a common occurrence when the power to remove is going to be exercised. The bank and the personal representative come to an "agreement."

Answer 2

Many reasons.

Too small to be profitable.

Too large, meaning too much risk.

Beneficiaries too difficult to deal with to be worthwhile.

Terms of the trust too restrictive to be worth the trouble.

It's common enough. Ask them why they refuse.