The Three Categories Of Trust Lawsuits

Trusts have the reputation of being able to work miracles.  If you believe the promotional content on the websites of financial planners, then trusts make everyone feel rich.  The grantor gets to save money on taxes, the beneficiaries get to inherit more money, and start receiving payouts sooner, than if they had simply inherited from the grantor’s estate after it went through probate.  If the trust is especially well-funded and administering it requires a professional level of expertise, then the trustee might even get a salary for his or her trouble.  As with any legal or financial matter, things can go wrong with a trust.  People who didn’t get as much money from a trust as they were hoping can air their grievances in court, just as family members disinherited from a will can do.  Trustees can fail to follow the instructions in the trust instrument or carry out their duties with an insufficient level of transparency.  Trustees and the beneficiaries of trusts have recourse to the courts to resolve disputes related to trusts, just as the parties to legally binding agreements do.  For help resolving a dispute related to a trust or setting up a trust in a way that will not lead to disputes, contact an Orlando estate planning lawyer.

Trust Contests

Just as it is possible to contest a will if you do not believe that it is legally valid, you can challenge the validity of a trust.  The factors that invalidate a trust instrument are the same ones that invalidate a will.  Perhaps the grantor did not follow legal procedures correctly when executing the trust instrument, or the trust instrument might be a fake, which the grantor did not sign at all.  The plaintiff might also argue that the grantor was not of sound mind when he or she established the trust, or the grantor established it as a result of undue influence, that is, fraud or coercion.

Declaratory Relief

A request for declaratory relief is where the trustee and the beneficiaries disagree about the meaning of a phrase in the trust instrument.  The judge’s role is to decide the correct way to interpret it, or otherwise to clear up misunderstandings and disagreements where everyone agrees that the trust instrument is valid.

Breach of Trust

A breach of trust lawsuit is where the beneficiaries allege that the trustee has breached his or her legal duty to act in the best interest of the beneficiaries, including but not limited to by following the instructions in the trust instrument.  They might allege that the trustee is abusing his or her discretion to make transactions with the trust assets, or that the trustee is making unauthorized transactions with the assets belonging to the trust.

Contact Gierach and Gierach About Trust Litigation

An estate planning lawyer can represent you in your capacity as a trustee or a beneficiary in a trust dispute.  Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.

Source:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0736/Sections/0736.0201.html