How to avoid trust litigation?

Understanding Trust Litigation: Common Causes and How to Avoid Litigation

Why Trust Litigation is Common

1. Privacy and Lack of Oversight:
   • Unlike wills, which are public documents filed with the court, trusts are private. This privacy means that the terms of the trust are not automatically disclosed to beneficiaries or the public.
   • Without the need for court oversight, trustees have significant power, which can be misused if they fail to notify beneficiaries or provide necessary information.
2. Failure to Notify Beneficiaries:
   • Trustees are legally required to notify beneficiaries of their status and provide them with a copy of the trust. However, some trustees neglect this duty, leaving beneficiaries in the dark about their inheritance.
   • Common complaints include unresponsive trustees, refusal to share the trust document, and lack of transparency regarding the trust’s administration.
3. Disputes Over Trust Terms:
   • Beneficiaries may suspect that changes to the trust were made under questionable circumstances, such as undue influence or lack of capacity.
   • Situations where a long-standing trust is suddenly and radically altered shortly before the grantor’s death are particularly suspicious and often lead to litigation.
4. Mismanagement of Trust Assets:
   • Trustees have a fiduciary duty to manage the trust assets prudently and in the best interests of the beneficiaries. Allegations of mismanagement, such as improper investments or failure to distribute assets according to the trust terms, can lead to legal action.

Common Scenarios Leading to Trust Litigation

1. Unresponsive Trustees:
   • Beneficiaries may report that a trustee is not returning calls or providing updates about the trust. This lack of communication can indicate mismanagement or deliberate withholding of information.
2. Suspected Undue Influence:
   • If a trust was significantly altered shortly before the grantor’s death, beneficiaries might suspect that someone exerted undue influence to benefit themselves. This can be particularly concerning if the grantor was in a vulnerable state due to illness or cognitive decline.
3. Hidden Trust Documents:
   • Beneficiaries who believe they were included in a trust but cannot obtain a copy of the document may need to seek legal assistance to uncover their rightful inheritance.
4. Improper Trust Amendments:
   • Questions about the validity of trust amendments can arise if they were made under suspicious circumstances or without proper legal formalities.

Steps to Take if You Suspect Issues with a Trust

1. Request a Copy of the Trust:
   • Beneficiaries have the right to request a copy of the trust document from the trustee. If the trustee refuses, this could be a red flag.
2. Document Your Concerns:
   • Keep detailed records of any communications (or lack thereof) with the trustee. Note any instances of suspicious behavior or unexplained changes in the trust’s administration.
3. Consult a Trust Litigation Attorney:
   • An experienced attorney can help you understand your rights, investigate potential misconduct, and take appropriate legal action. They can assist in obtaining necessary documents, challenging questionable amendments, and ensuring that the trust is administered correctly.
4. File a Petition with the Court:
   • If necessary, beneficiaries can file a petition with the probate court to compel the trustee to provide information, account for the trust assets, or even remove the trustee if there is evidence of mismanagement or misconduct.

Conclusion