Trusts are a valuable estate planning tool. They can shield assets from creditors, lower your estate and income tax bills, circumvent formal probate administration, and protect any special needs loved ones, pets, and beneficiaries who do not manage money well.
However, problems do pop up. Trusts can be flawed in their language or the person managing one may be self-dealing or unable to follow the trust’s instructions. When beneficiaries do not agree with each other, a challenge can be filed in civil court. For professional probate representation, whether you are a beneficiary or a trustee, a Florida trust litigation lawyer will look after your interests.
Basics of a Trust
Trusts are fiduciary arrangements in which a grantor (the person who creates a trust) names a third party to oversee the trust assets and follow the grantor’s directions about disbursement to beneficiaries. Revocable trusts can receive assets during the grantor’s lifetime and beneficiaries can be added or removed as well. The grantor is often the trustee, although upon their death, an alternate trustee distributes assets as they remain in the trust, which becomes irrevocable at death.
Irrevocable trusts assume ownership of the grantor’s assets as deposited, which avoids excessive estate taxes and can permit a grantor to qualify for elder care from Medicaid, with its income caps. Trusts are also private, unlike probate, where anyone can access court records to learn what assets are being left to whom.
The Trustee’s Duties
The trustee is called a fiduciary because they have a responsibility to administer the trust appropriately and owe loyalty and impartiality to the trust and the beneficiaries.
They are expected to control expenses revolving around trust administration and to control and protect assets for beneficiaries, distributing them according to the grantor’s trust instructions. They must account for money that has been spent and keep beneficiaries informed about how the trust is being managed.
Failing in these duties is considered breach of a fiduciary duty and is actionable if beneficiaries challenge the trust. A trust litigation attorney listens to clients’ concerns and can represent them in Florida courts whether they are beneficiaries or trustees.
Valid Grounds for Contesting a Florida Trust
Along with breaching a fiduciary duty, trustees could potentially ignore the trust language, demand excessive compensation, fail to account for expenditures properly, and ignore beneficiaries seeking information. The trust document might also be improperly executed or contain confusing language, the grantor may have been incompetent when the trust was made, or a beneficiary may have exercised undue influence on them. These are all grounds for litigating a trust.
Remedies When a Trust Needs is Challenged
Challenging a revocable or irrevocable trust can be done in several ways, but a qualified Florida trust litigation attorney can assist beneficiaries, trustees, or grantors who can cite problems with the trust. Some remedies include:
- Beneficiaries can demand payment as specified in the trust document;
- Demand the trustee perform fiduciary duties and file a lawsuit if they do not comply;
- Beneficiaries can order an accounting;
- Ask the court to appoint a special fiduciary to replace the trustee;
- Ask the court to modify, terminate, or revoke the trust;
- The grantor can appeal to the judge to let them name a new trustee if the language in the trust allows them to do so.
The point of a trust is to disburse a grantor’s assets in the manner they determine. If a trustee is non-compliant, a Florida trust litigation attorney can intercede and fight for the beneficial outcome the grantor envisioned.
Ask a Florida Trust Litigation Attorney for Help Today
If you are a beneficiary who believes a trust established in Florida does not comply with the law or a trustee is overstepping their power, we should talk. There are several remedies for faulty language or if a trustee is not performing their duties. If you are a trustee being hassled by beneficiaries, we can help you, too.
The attorneys at The Florida Probate & Family Law Firm are dedicated to the smooth transition of generational wealth. Providing for your loved ones is the ultimate gift you can give. No matter your familial role, a Florida trust litigation attorney is available to answer your questions. Call today for a free case evaluation.