NEWS
Unraveling The Complexities of Trust Litigation: A Quick Guide
Trusts have become go-to solutions for people who want to protect their major assets and leave something behind for their families after they pass. They’re helpful for people who want to ensure their properties and finances are managed according to their final wishes. These arrangements can protect both the grantor, or the person who owns the assets, and beneficiaries, or the people who receive those assets. By placing assets in trust, it’s possible to ensure everyone’s best interests are kept in mind.
Exploring Trust Litigation
That being said things don’t always go the way they’re supposed to. In some cases, trustees, the people who handle trusts, place their own best interests at the forefront. Other times, beneficiaries may disagree on how the assets included in a trust should be divided despite the wishes of the grantor. When issues like those arise, litigation may ensue. For beneficiaries, fully understanding trust litigation is the key to ensuring the best outcome.
Trust litigation is a lawsuit filed against someone involved in a trust. It could be filed against a trustee by a beneficiary or by someone on the outside against a beneficiary or trustee. Those are only a few of the possibilities. It’s a complicated field, but the following points can help unravel some of its complexities.
Disputes and Conflicts
Numerous conflicts and disputes may arise regarding a trust. As mentioned, beneficiaries may disagree on how the assets in the trust are distributed. They may not agree with how the assets are being managed as well. In many instances, beneficiaries or grantors may feel that a trustee is using a trust for his or her own gain rather than its intended purposes. All those matters could bring about disputes that may lead to the need for litigation.
Breaches of Trust
Breaches of trust occur when trustees fail to act in accordance with the guidelines of the trusts they’re in charge of. This could involve mismanagement of assets and using the trust for personal gain. It may include failing to distribute assets as agreed upon as well. Breaches of trust are viable reasons for litigation, but they must be proven for the lawsuit to be successful.
Contesting a Trust
Beneficiaries can contest a trust if they believe that it’s invalid or unfair. They may be able to claim that the grantor was coerced by someone else, possibly another beneficiary when deciding how the assets should be distributed. It may also be possible to prove that the grantor lacked the mental capacity to determine the terms of the trust. People who weren’t named beneficiaries of a trust may also contest the agreement, but proving they should’ve been included in the arrangement may be difficult.
Supplanting Trustees
If beneficiaries or grantors believe a trustee is mismanaging or misusing the assets in a trust, they can have that trustee removed. From there, they can appoint a new one. Allegations of wrongdoing must be described in a trustee removal petition and filed with the court. The case may also need to proceed to court to successfully have the trustee removed or replaced if he or she doesn’t willingly step down.
Resolving Trust Conflicts and Other Legal Matters
Conflicts, breaches of trust, removing trustees, and other legal matters related to trusts can be resolved in different ways. If everyone involved can come to an amicable agreement, the situation may be settled out of court. In some instances, a mediator may be able to help foster this type of resolution. A mediator is a neutral third party who steps in. Other times, trust litigations must go through court where a judge will make the final determinations on the conflicts in question.
Successfully Navigating Trust Litigation
In essence, trust litigation is about resolving conflicts and making sure the best interests of the beneficiaries are kept in mind. Some beneficiaries may disagree on the terms of a trust or feel that the trustee in charge of the arrangement isn’t upholding his or her duties. People who weren’t named as beneficiaries may feel they should’ve been. Litigation is a legal process aimed at ensuring the trust’s purpose is fulfilled and its included assets are managed properly.
Having completed my education in English, I’ve cultivated a successful career as a content writer. My tenure includes valued collaborations with distinguished professional organizations, reflecting my commitment to producing high-quality content.
Contact me on this mail: bloggerjohnsmith12@gmail.com