Trusts are a vital tool in estate planning and provide significant advantages like protection of assets, tax benefits and probate avoidance.
Unfortunately, disputes can arise over trusts just as they can with wills. Whether you are a trustee or beneficiary, understanding the issues that can lead to trust litigation can help prepare you to deal with them effectively.
Undue influence
The suspicion that someone somehow convinced the grantor to make decisions that benefit them unfairly is a common cause of trust litigation. Proving undue influence can be complex and requires demonstrating that the grantor was coerced or manipulated by an individual.
Lack of mental capacity
The grantor must have the capacity to make sound financial decisions. As you may know, doubts about mental capacity can allow beneficiaries to contest a will, but it can also be grounds to challenge a trust. Evidence of the grantor’s mental state when creating their trust is crucial in these cases.
Ambiguous language
Estate documents, including trusts, should be precise and avoid ambiguous or confusing language. Unclear trust documents often result in different interpretations, requiring court intervention to clarify the settlor’s intentions. Ultimately, the beneficiaries and trustees must abide by the court’s decision.
Trustee misconduct
Trustees have a duty to act in the best interests of beneficiaries by adhering to the trust’s terms and managing assets prudently. Breaches of that duty, such as mismanagement or negligence, can open the door to conflicts and litigation. Beneficiaries must provide evidence of misconduct to succeed in these cases.
Regardless of your position – beneficiary or trustee – trust litigation can be complicated and emotionally challenging, especially following the death of a loved one. An experienced probate and trust litigation attorney can help you navigate Florida trust laws and provide guidance on your specific situation.