Trust litigation involves legal disputes associated with a trust’s administration, management, or distribution.
Major Issues that Arise in Trust Litigation
Trust litigation typically arises from disputes over the management or execution of a trust. Some common issues that lead to litigation include:
- Challenges to the validity of the trust: Beneficiaries or other parties may contest a trust if they believe the trustor (the person who created the trust) lacked the mental capacity to make sound decisions, was under undue influence, or if the trust was established based on fraudulent information.
- Breach of fiduciary duty by trustees: Trustees have a legal responsibility to manage the trust in the best interests of the beneficiaries. Litigation may occur if a trustee is accused of mismanaging assets, failing to follow the terms of the trust, or engaging in self-dealing or other improper conduct.
- Disputes among beneficiaries: The beneficiaries of an estate may disagree over how assets should be distributed or may have differing interpretations of the trust’s terms. These conflicts can escalate, leading to litigation that requires court intervention.
Real-life scenarios that may trigger trust litigation include a trustee diverting trust funds for personal use, beneficiaries contesting the fairness of asset distributions, or a family member alleging that a trust was created under duress. These disputes can be emotionally and financially draining, making legal representation essential.