For wealth managers, the referral decision for a client facing a fiduciary dispute is one of the more consequential recommendations they will make. But exactly when do wealth managers need a fiduciary litigator? While estate planning attorneys and general commercial counsel can serve invaluable roles in creating the structure for growth and administration of a client’s wealth, their expertise often stops at the courtroom door. When a client is confronted with a formal legal demand, an aggressive claim, or the necessity of filing suit to protect their interests, the matter has escalated beyond counseling and likely requires a specialist equipped with the specific knowledge and courtroom experience of fiduciary litigation.
A fiduciary litigator is a necessity where claims involve substantial assets, family businesses, and complex trusts. The moment a dispute involves allegations of breach of fiduciary duty, contested capacity, fraud, or the demand for an accounting, the need for a dedicated fiduciary litigation firm becomes absolute.
“Oftentimes, a wealth manager or financial advisor is representing generation one, but they’re also starting to represent generation two,” explains Craig M. Frankel, a founding partner of Gaslowitz Frankel. “This is when they realize there’s potential for disputes if, say, generation one has said that they have a concern about a child or somebody who’s having a substance abuse issue, who is going through a difficult divorce, or who has control issues within a business. It’s at this point that they start looking down the road and realize that having a fiduciary litigator isn’t a luxury – it’s essential to preserving and transferring generational wealth and protecting the legacy of their client.”
When Do Wealth Managers Need a Fiduciary Litigator? When Counsel Fails and High-Stakes Trust and Estate Disputes Loom Large
The challenge for wealth managers lies in recognizing that the skills which successfully create legal structures, forethought, drafting, and administration, are entirely distinct from the expertise required to defend those structures in an aggressive, adversarial setting.
The moment a client moves from planning their legacy to defending against a challenge to it, the matter requires a definitive change in counsel, shifting the necessary legal focus from collaboration to conflict.
Related Article: When Wealth Managers Need Fiduciary Litigation Expertise?
The Distinction Between Counseling and Fiduciary Litigation
In complex wealth management, clients require counsel across many professional domains, from tax planning to corporate structuring. However, when the client or their entity becomes the target of an adversarial action, adding litigation counsel to the mix at the earliest opportunity will give them the best chance of protecting their interests. “I have one financial planner who represents some really wealthy families,” reflected Frankel. “He’s typically representing families, almost like a family office, but he’s a financial planner. He attended a presentation I gave at a seminar talking about how to avoid family disputes, typically between first and second generations. Since then, he’s called us four or five times regarding extraordinarily wealthy clients who are worried about a challenge, most times by a spouse. Sometimes, it’s more about structuring their estate plan to avoid problems as they age. I’ve been able to help them. I call that the preventive benefit of consulting with a fiduciary litigator.”
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Estate Planning Counsel’s Role vs. Litigator’s Role:
Understanding the difference between an estate planner and litigator is crucial to answering the question, When do wealth managers need a fiduciary litigator? Here’s the difference between an estate planning counsel’s role vs. a litigator’s role:
- Estate Planners focus on foresight, drafting, and administration, ensuring the orderly transfer of assets while minimizing tax exposure. They operate in a collaborative, non-adversarial environment.
- Fiduciary Litigators focus on conflict, evidence, and advocacy. Their expertise involves mastering procedural rules, conducting aggressive discovery, and building and presenting a compelling case to a judge or jury, often in the face of contentious family dynamics.
When a client holds the fiduciary role, as an executor, trustee, or company officer, and is facing a demand for information or an allegation of breach, they require a representative whose primary experience is in defending those specific roles against claims.
This is not the time for an attorney whose practice is split across multiple disciplines.
Related Article: Protecting Client Legacies: When Wealth Managers Face Contested Estates
Navigating High-Stakes, Complex Fiduciary Allegations
The referrals that fiduciary litigators receive from wealth managers typically involve complex financial instruments and governance issues that demand a specific legal skill set.
Related Article: When Family Business Disputes Threaten Client Wealth: Guidance for Wealth Managers
Business Governance Disputes
Many disputes referred to Gaslowitz Frankel involve allegations of malfeasance within closely held businesses. While a wealth manager may advise on the value of the liquid assets, the core dispute revolves around the control and operation of the non-liquid entity. These cases often involve:
- Allegations of inappropriate self-dealing or excessive compensation by the controlling owner.
- Disputes over the informal or aggressive use of company assets for personal gain.
- Minority owners or next-generation partners demanding exhaustive information to which the fiduciary objects.
In these environments, only a firm dedicated to fiduciary and commercial litigation can effectively navigate the interplay between corporate law, partnership agreements, and fiduciary duties to protect the client’s position as a managing member or majority shareholder.
“Once, an advisor had a client who was a new client, and most of his wealth came from a family insurance business,” recalled Frankel. “There was a dispute between the father, who was not the client, and the son, who was the client, regarding control of the company, which was largely owned by trusts. Although a lot of litigation was required, we ultimately got control of the entities. The client and company have been protected and the financial advisor continues to advise the client on their investments and wealth management.”
Related Article: Gaslowitz Frankel Founding Partners Recognized in Best Lawyers in America 2026 Edition
Trust and Estate Disputes
For trust and estate disputes, the stakes are not merely financial; they are deeply personal as they usually involve close family members.
Furthermore, these disputes often arise when a disgruntled beneficiary without significant assets seeks a big payout from the family trust or company. . These plaintiffs often hire lawyers on a contingency basis, which can complicate potential settlement options.
And, when a fiduciary is sued, the attorney who drafted the trust or estate plan or advised the fiduciary in administering such a plan usually cannot represent the client in litigation because the attorney will be a witness in the case. Even if that is not the case, most attorneys who draft and administer these plans are not litigators. A fiduciary litigator is the best option for protecting complex wealth plans and their fiduciaries.
Related Article: Navigating Complex Trust Administration Disputes
The Power of an Objective Litigation Partner
So, when do wealth managers need a fiduciary litigator? Any time there is the potential for high-value trust and estate disputes, a litigator is essential. But it is often advisable to work with a seasoned litigator well before disputes arise.
A fiduciary litigator offers three advantages to a wealth manager’s client:
- Vigorous, Unconflicted Advocacy: When a dispute involves potential liability for a trustee or executor, they need counsel whose sole focus is litigation and defense. Unlike the estate planner, the litigator has no conflict in taking an aggressive, non-conciliatory posture necessary for a win.
- Objective Assessment of Entitlement: A fiduciary litigator can cut through the emotional demands of family members to provide an objective legal assessment of what the claimant is actually entitled to under the governing documents. This reality check is often the first step in formulating a successful defense strategy.
- Alternative Dispute Resolution (ADR) Expertise: While you need a firm that is prepared for trial, you also need a firm with expertise in ADR. This capability is a crucial asset. By positioning the client with a strong, courtroom-ready defense, the firm creates maximum leverage for mediation and negotiation, often leading to a more efficient and less financially destructive resolution than protracted litigation.
Frankel stated, “We frequently see situations where an inquiry from opposing counsel is an attempt at a fishing expedition, not a legitimate claim. Our role is to rapidly assess the merits of the demand and respond with clarity and force, which sometimes means telling the opposing party: you have received what you are legally entitled to. If you believe you have a claim, the next step is yours. This decisive posture, backed by our litigation experience, is often sufficient to deter baseless lawsuits.”
The attorneys of Gaslowitz Frankel have years of expertise in handling the complex issues surrounding will, trust, estate, business, and securities disputes. For trusted estate law and fiduciary legal guidance, consult with the attorneys of Gaslowitz Frankel.
