People create trusts for many different purposes. Those who want to provide support for a family member with special needs might fund a trust. People concerned about creditor claims against their personal property might establish trusts to protect their assets.
Trusts can control resources ranging from businesses and financial accounts to real property. The trustor who funded the trust may have provided very clear instructions regarding when and how the trustee distributes assets to beneficiaries.
Especially when a trust is part of an estate plan and therefore critical to an individual’s legacy, families and beneficiaries expect trustees to follow both the law and the instructions in the trust. In some cases, trustees let personal preferences or relationships with beneficiaries influence how they manage trust resources. In such cases, it may be necessary to take legal action.
How can the courts help?
Probate litigation related to the improper administration of a trust can offer several solutions to frustrated beneficiaries. In some cases, judges review the trust documents and instruct the trustee to make distributions they previously refused to complete.
Other times, judges may acknowledge that a trustee has a pattern of refusing to uphold the instructions in the trust paperwork. In that situation, a judge could choose to replace a trustee, as they have failed to fulfill their obligations under the law and may have also violated their fiduciary duty to beneficiaries.
Pursuing trust litigation is one of the most effective means of resolving trustee misconduct. Beneficiaries may want help to advocate for themselves when a trustee does not properly fulfill their responsibilities.