Trusts are some of the most powerful estate planning tools that one can utilize, offering a grantor the ability to control their estate by making tax planning decisions, controlling distribution, protecting against creditors, and exercising some control over their estate in the event of their death.
Trusts are meant to carry out the wishes of the grantor, meaning that each trust can be unique and complicated. Each type of trust has its own nuances. A trust litigation attorney can help navigate clients through the litigation process with as little stress and worry as possible.
What is Trust Litigation?
Trust litigation is any legal proceeding involving disputes over an established trust. Trust disputes can involve the trustee, disputes between the beneficiaries of the trust, conflict about the terms of the trust, administrative issues, and other potential conflicts. Beneficiaries challenging a trustee tend to want to compel the opposing party to change some adverse behavior, to receive some restitution for unduly lost assets or fees, or to replace the trustee altogether.
Common Reasons Trust Disputes Arise
Breach of Fiduciary Duties
Trustees have a legal obligation to adhere to their fiduciary duties, including the duties of care, loyalty, and full disclosure. These duties obligate a trustee to behave in the best interest of the beneficiaries. Behaviors that would violate fiduciary duties include self-dealing, ignoring trust directives, or misappropriating funds, to name a few.
Disputes Among Siblings
It is not uncommon for siblings to enter into conflict over trusts after the passing of a parent. Siblings may feel that the distribution of the assets is unfair, disagree about the management of the trust, or have different ideas about what to do with certain assets, such as the family home or other real estate.
Lack of Capacity
The trust must be established by a grantor with full mental capacity, without undue influence from another. If an interested party believes that there was undue influence during the establishment of the trust, they may have grounds to petition the court to set the trust aside.
Failure to Provide Accounting
Trustees are required to provide accurate accounting information about the assets in the trust, including financial statements and information about the state of assets. Failure to provide information at least annually can be grounds for a dispute.
Trust Modifications
If there are problems with the trust that may not have been anticipated by the grantor, beneficiaries may need to make modifications to the trust. Modification of an irrevocable trust in Georgia requires court approval.
Do You Need a Trust Litigation Attorney?
Having a trust attorney that can guide you through trust litigation can help you make the best decisions for you and your family. The attorneys at Gaslowitz Frankel LLC have decades of experience with trust and estate litigation, and proven results with even the toughest of cases. Our attorney’s expertise and compassion treat every case with the diligence and attention it deserves.
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