Well-designed estate plans designate rights and responsibilities of trustees and beneficiaries. However, disagreements regarding the execution of the trust document may require legal advice. If you are a trustee or a beneficiary and experiencing difficulties with any part of settling an estate, contact an experienced estate litigation attorney immediately. Your attorney may offer assistance before the case must be settled in court. Either way, the attorney will be prepared if the case does go to court.
Roles of Trustee and Beneficiary
Estate plans are legal documents. Therefore, each party has a fiduciary duty to follow the estate plan. Specific roles include:
- Trustee- A trustee is an individual or an entity appointed to manage and distribute assets. The trustee MUST follow the terms of the estate plan. In fact, a trustee has a fiduciary duty to act in the best interests of the beneficiaries and the estate. The chosen beneficiary should be loyal, trustworthy, and impartial.
- Beneficiary- A trust may have one, or numerous beneficiaries. They may include family members, charities, or friends. Beneficiaries have the right to receive any benefits from the trust in a timely manner.
Common Disputes between Trustees and Beneficiaries
Disagreements regarding settling a trust arise for a variety of reasons. Common disputes include:
- Mismanagement of trust assets – A trust may include stock, real estate, cash, and other assets. Sometimes a beneficiary contends a trustee is investing the trust’s assets carelessly. If the trust is losing money as a result of a trustee’s reckless behavior, a beneficiary may take the trustee to court.
- Breach of fiduciary duty – If a trustee treats one beneficiary more favorably than others, this may be in violation of the trust agreement.
- Undue influence or coercion – In this case, beneficiaries may feel the trustee manipulated the grantor (the person making the trust). Perhaps the document was changed in the last year or two of an elderly person’s life. If the grantor was not mentally sound at that time, the beneficiaries may have a case of undue influence.
- Failure to distribute assets- If the trustee fails to distribute assets in a timely manner, beneficiaries may seek legal recourse. Of course, a trustee must pay taxes and settle any debts before distributing assets. So, beneficiaries must be reasonably patient.
- Accounting disputes- Beneficiaries may request financial information from the trustee. If there is a lack of transparency, beneficiaries may seek legal action.
Protections under Florida Law
Florida law protects beneficiaries and trustees. The Florida Trust Code (Chapter 736, Florida Statutes) governs trusts. These statutes govern the creation, administration, and termination of trusts. They also offers guidelines for dispute resolution. Experienced estate planning attorneys are familiar with these intricate laws. So, contact an experienced attorney for help if you are involved in any trust dispute.
Legal Remedies
Trustee and beneficiary disputes may be complex. Contact an attorney that specializes in trust litigation if you are having issues regarding a trust. Remember, just because you don’t like the terms of a trust is not a legal reason to fight it. There must be a solid claim of wrongdoing to dispute a trust. Some examples of when you may seek legal help include:
- Breach of fiduciary duty
- Mismanagement of trust assets
- Lack of transparency
- Excessive trustee compensation
- Undue influence
So, beneficiaries unhappy with a trust’s execution should contact a trust litigation attorney. Remember, you must have EVIDENCE to contest a trust. Additionally, a Florida trustee may want to hire an experienced trust lawyer. This protects the trust and the trustee. In conclusion, some estates are settled without any problems. Yet, when there are conflicts, seek legal advice.