Keeping Your Affairs In Order: Managing Your Living Trust And Avoiding Probate With Expert Legal Representation

Popular media, such as the show Succession, has shown us that disputes over inheritance are something that transcends social class distinctions. No matter who you are or the amount of resources involved, families that once lived in happiness and harmony can easily be torn apart by greed and avarice once a family member passes and there is a profit to be made.

Avoiding this eventuality is the primary purpose of living trusts, which provide a legally actionable plan for dividing assets once the parent or relative has passed. Trust and probate law is the field that specializes in creating and enforcing these trusts – but what happens when changes need to be made or a dispute arises concerning the intent of the trustor or interpretation of the trust document?

Trust and probate litigation is a legal battleground where disputes and challenges surrounding trusts, wills, and asset distribution after a person’s passing come to the forefront. It usually arises when disagreements among beneficiaries, trustees, or other involved parties break out around the validity of estate planning documents or the proper administration of an estate. 

Litigation can arise from several different eventualities, and it pays to know what options you have if you believe the terms of the trust were interpreted unfairly, the trustee breached his or her duties in handling trust assets or you need to enforce certain provisions of the trust. The following list contains some of the most common disputes in trust and probate law that will likely need to be resolved through litigation.

Will and Trust Contests

In old films, the plot often revolves around the family member of a wealthy benefactor targeted by a femme fatale who they claim forced the changing of the terms of the trust before their untimely death. While real life is often not so dramatic, one of the most commonly litigated disputes around trusts arises from challenges to the validity of a will or trust document due to a similar lack of capacity or fraud. 

Trust and probate litigation frequently involves challenging the validity of a will or trust document. These contests may encompass a wide array of claims, including allegations of undue influence, lack of capacity, fraud, or improper execution of estate planning documents. 

In order to effectively challenge the validity of the trust’s text, it is highly recommended that you enlist the services of a law firm that specializes in trust and probate law. A good legal team will bring legal expertise to bear in examining the circumstances surrounding the creation of these documents and assessing their legitimacy.

Breach of Fiduciary Duty

Individuals that may not always be  included in the list of beneficiaries are designated as trustees to handle the trust assets fairly and neutrally. Unfortunately, this role can come with its own temptations that may lead to the improper use of the resources included in the trust.

Trustees and executors, as fiduciaries, bear the weighty responsibility of managing trusts and estates in the best interests of beneficiaries. If the beneficiaries feel that they have broken these duties, allegations of mismanagement, embezzlement, or self-dealing can give rise to breach of fiduciary duty claims. 

These claims are typically handled through litigation in Probate Court necessitating experienced legal representation for a beneficial resolution. This legal representation will be used to investigate claims of fiduciary misconduct, seek justice for beneficiaries, and ensure proper estate administration.

Trustee Removal

If the trustee has mismanaged trust assets, the beneficiaries may want to remove the trustee altogether. The action to remove a trustee can be filed concurrently with the Petition alleging breach of fiduciary duty.

Similarly to the section on litigating breaches of fiduciary duty, the case for removing a trustee will need to be litigated in court. It is always highly recommended for any litigated proceeding to utilize the services of an experienced law firm, as they can provide legal guidance and representation for pursuing trustee removal actions or defending trustees against unjust removal attempts.

Interpretation of Trust or Will Terms

When creating a living trust, it’s always heavily recommended that you utilize the services of an experienced attorney to make the terms crystal clear and actionable. Unfortunately, even when an expert is consulted, interpretations of the terms may vary, and if you believe the terms have been wrongfully interpreted, you may need to settle the dispute through litigation.

Lawyers specializing in trust and probate litigation offer legal analysis and representation to clarify the intent of these documents. Their expertise helps unravel complex legal language and ensures the documents’ provisions are correctly understood and applied.

Accountings and Asset Valuation

Often a trust will involve the transfer of non-monetary property, including real estate, antiques, vehicles, jewelry, and other tangible assets. The actual value of these items may differ from their on-paper accounting, and their distribution may upset the balance of what is being handed out to the beneficiaries.

Precise accounting of estate assets and their accurate valuation is paramount to a fair distribution of assets. If you feel that the value of the distributed property has not been accurately assessed, you may need to litigate the dispute to get an accurate accounting.

Mediation and Alternative Dispute Resolution

Litigation is often a highly tense and emotional process, as it directly pits one person against another where the winner stands to gain while the loser stands to lose out. This is especially troubling in trust and probate law, as it is often family members who are battling against one another, leaving lifelong rifts between branches of the family.

Thankfully, these disputes do not always need to be resolved with litigation. Utilizing the services of a mediator helps reduce tensions and bring the dispute to a peaceful and mutually beneficial conclusion.

While the mediator is neutral and works with both parties to attempt resolution, it is highly recommended to hire your own lawyer to represent your interests and ensure a fair result. Lawyers with experience in this field help clients explore these options, striving for amicable and cost-effective resolutions that spare all parties involved the stress and expense of protracted litigation.

Estate Planning and Avoiding Litigation

Ultimately, disputes over the distribution of an estate can be very damaging to the cohesion of a family unit. Emotions run high, and long-lasting feuds, bitter resentment, and hard feelings between family members are all too common in the wake of a benefactor’s death. 

The best thing you can do to avoid this eventuality is to work with experts to create an airtight, equitable, and clear estate plan. By establishing well-crafted estate plans, individuals can minimize the likelihood of disputes arising after their passing, providing peace of mind to both themselves and their beneficiaries.

However, even with well drafted estate plans, trust and probate litigation can occur, which is a very complex and high strung arena, as the sight of money and resources on the table can bring out the uglier sides of human nature. Legal representation from firms like Villasenor Law Offices is indispensable in protecting clients’ interests, ensuring the equitable distribution of assets, and resolving disputes in compliance with applicable laws and regulations.

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