Gaslowtiz Frankel attorneys are the premiere trust litigation attorneys for the state of Georgia, with decades of in-court and alternative resolution experience. A 2022 trust dispute case study demonstrates the firm’s commitment to excellence for its clients.
Trusts can be established to help grantors (individuals who establish a trust) and beneficiaries (those that benefit from an established trust) with tax planning, estate planning, and distribution control, among other benefits. However, it is common for disputes to arise between grantors, trustees, and beneficiaries, for example, if one of the parties fails their fiduciary duties.
In 2022, Gaslowitz Frankel partners Craig Frankel and LeAnne Gilbert, along with divorce counsel Alvah Smith, secured a verdict over a trust dispute, setting aside a trust and awarding $18.5 million to their client.
Trust Dispute Case Study
After a seven-day trial, Gaslowitz Frankel partners Craig Frankel and LeAnne Gilbert, together with divorce counsel, Alvah Smith, secured an $18.5 million jury verdict for their client in a complex divorce/trust litigation case.
As part of her divorce complaint, Wife asked the Court to set aside a trust. Wife alleged that she had been fraudulently induced by her Husband into signing the trust as grantor and into which the vast majority of the wealth created during Wife’s multi-decade marriage to Husband was transferred. Wife furthered alleged that she did not discover the true terms or meaning of the trust until years after she signed the document, which she said contributed to her decision to file for divorce.
Husband alleged that the attorney who drafted the trust and who was named the trustee, represented only Husband. Several years after Wife signed the trust instrument, at husband’s request, the trustee/attorney for Husband made Husband a beneficiary of the trust, which along with a later-created subtrust (of which Husband was also a beneficiary), eventually held more than $30 million.
Wife alleged that Husband, as her spouse, owed her a fiduciary duty to disclose all material facts regarding the trust prior to asking her to execute it. At trial, the jury concluded that Husband had not disclosed to his wife material facts regarding the trust, including Husband’s intent that the majority of the wealth created through his businesses would be placed in the trust, that the attorney who drafted the trust represented only Husband (as opposed to both spouses), and that the terms of the trust made Wife personally liable for all of the income tax generated by the trust.
After a seven-day trial, the jury concluded that Husband had fraudulently induced his wife into signing the trust and that he had breached his fiduciary duties to his wife.
Based on this finding, the Court set aside the trust and ordered that the trust assets be returned to the marital estate. The jury then issued a verdict awarding Wife fifty percent of the assets formerly held by the trust, and fifty percent of the other assets in the martial estate for a combined verdict of $18,554,317.66.
Premier Fiduciary Litigators for the State of Georgia
Trust disputes can occur when participants are self-dealing, failing to provide accounting, or exerting undue influence. If you suspect that you are a victim of a breach of fiduciary duties, Gaslowitz Frankel has attorneys with the right knowledge and experience for your case.
Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes with over 30 years of experience representing individuals, executors, trustees, and more in complex fiduciary disputes involving wills, estates, and trusts.
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