A trust is an estate planning tool that lets you benefit beneficiaries both during your lifetime and after your death in a manner you feel is best. Unfortunately, there are times when the beneficiaries may want to void a trust or remove or sue a trustee. You could be required to pursue litigation in these situations.
Legal Matters Involving a Trustee
A trust is a legal document that lets you benefit beneficiaries both during your lifetime and after your death in a manner that you feel is best. When disputes arise over the interpretation or implementation of a trust, it may be time to bring a lawsuit against a trustee. If you are considering suing a trustee, it may help to talk to a litigation attorney who handles trust cases. With that, you can determine what would be best for your situation.
If the person who created the trust was not of sound mind when they made it, there may be a need for litigation to resolve the question of whether the trust is valid. In some situations, there may be questions about whether the maker of a trust was pressured or coerced into creating it. If the trust is the product of undue influence you may want to bring an action to void the trust.
Common Trust Issues
Trustees can find themselves in court for a variety of reasons. They may need to initiate a lawsuit on behalf of the trust because of the wrongdoing or negligence of another person or entity. Additionally, they may need to represent the trust in defense against any claims brought against it by another party.
When a trustee breaches their fiduciary duty or violates the terms of the trust, people interested in the trust may consider suing the trustee. Some of the most common legal issues involving trusts include the removal of trustees, obtaining trust information, and situations involving prohibited transfers.
Disputes over trusts and how assets are managed, distributed, and used can be challenging. What happens if family members disagree over a trust? In many cases, the parties will have to resolve those issues in court with help from an attorney experienced in trust litigation. Here are a few reasons to take a trustee to court:
Failure to Comply With Terms
A trustee has been given the legal power to manage assets placed in a trust, which are used to benefit the beneficiaries. The trustee is obligated to act in the best interest of these beneficiaries and fulfill all of the terms of the trust. If the trustee fails to follow the wishes of the trust’s creator, the beneficiaries can petition to have them removed.
Self-dealing
When a trustee uses their control over the funds in a trust to benefit themselves, that individual breaches a fiduciary duty to the trust’s beneficiaries and may be removed by the court.
Mismanaging Assets
A trustee must ensure that a trust’s assets are not wasted or devalued. The beneficiaries may petition for removal if the trustee breaches this responsibility out of negligence or incompetence.
Hostile Actions Towards Beneficiaries
If the trustee takes hostile actions against the beneficiary which affects the trustee’s management of the trust, they may take that individual to court.
Talk to an Attorney
Beneficiaries must petition a court to remove a trustee and seek redress. You may want to talk to an experienced trust attorney before taking this step. If you are in need of assistance you can call the Knee Law Firm at 201-996-1200. You can also fill out the online form to schedule a consultation.