What Is Trust Litigation?

Legally speaking, litigation of trust is the process of challenging, or attempting to challenge a trust. Trust can be challenged for many reasons. For example, it could be argued that the trustee was not acting in accordance with their duties. Or, it could be argued that the trustee was not acting independently when making decisions about how to distribute assets within a trust.

Trust litigation lawyers specialize in handling legal disputes related to trusts, ensuring that the interests and intentions of the trust creator are protected. These attorneys provide expert guidance and representation in cases involving breach of fiduciary duty, mismanagement of trust assets, or contested trust distributions.

Read on to learn more about what trust litigation really is.

Trusts Are Legal Entities That Can Be Used By Individuals To Hold Assets

Trusts are often used for estate planning purposes, but they may also be created for other reasons. For example, a trust might be set up to pass on property or assets during one’s lifetime, and this is called a “testamentary” trust. It mainly functions as an alternative to a will.

Trusts come in many forms: formal or informal, revocable or irrevocable, private or public (e.g., charitable). A trust document is a legal document that creates the terms of your trust, including who will manage it after you die if it isn’t managed by someone else during your life (e.g., your children).

The terms of a trust document may include specific instructions about how much money should go into each fund within the overall structure of your estate plan. It also specifies what happens if those funds get depleted before their intended use at some point down the road.

Trust Litigation Investigates And Challenges The Terms Of Trusts

As mentioned, trust litigation refers to the legal process of investigating and challenging the terms of trusts and trusts in general. This law process can be pretty complex, involving multiple parties with competing interests. In many cases, it occurs when allegations are made that trustees aren’t acting in the beneficiaries best interests.

Trustees Often Have A Fiduciary Duty To Beneficiaries

Lastly, the trustee of a trust has a fiduciary duty to beneficiaries, which is an obligation to act in the best interests of others. However, this isn’t always clear. Trustees may have a fiduciary duty to beneficiaries, but this isn’t always clear, which will be further discussed below.

In some cases, it may be obvious that there are no beneficiaries – for example if you’re setting up an irrevocable trust. And if there are multiple beneficiaries and they are each entitled to different amounts from the trust fund – for example, if one beneficiary receives $50K and another gets $150K, then each beneficiary would have his/her separate interest in the funds held by your trust, and therefore wouldn’t require any representation at all.