What Is Trust Litigation?

Estate planning websites are full of encouragement for the prospective grantors of trusts.  They tell you how much money you and your heirs can save on taxes if you transfer money to them through a trust, as opposed to just letting them inherit it from your estate through probate.  If you are afraid of commitment, they go on to say, you can establish a revocable trust and continue to modify the trust instrument throughout your life.  It is less easy to find advice for the trustees and beneficiaries of trusts.  Some people designate law firms as trustees of their trusts, but the law also gives you the option of appointing a family member to this role, and many grantors do this, especially when the trust is of modest value.  Even though the beneficiaries of a trust do not get to decide how the trustee spends the money, they do have legal rights regarding the assets in the trust.  Legal disputes can arise from trusts, just as they can from any legally binding document, and the parties to the trust, namely the trustee and the beneficiaries, have the right to ask the court to rule on their disputes.  For help resolving a dispute related to a trust, with or without going to court, contact a Washington, D.C. estate planning lawyer.

Challenging the Validity of a Trust

Just as it is possible to challenge the validity of a will, it is possible for the beneficiary of a trust, or people who believe that they have been unfairly excluded as beneficiaries, to challenge the validity of a trust.  The reasons that plaintiffs cite in challenging the validity of a trust often overlap with commonly cited reasons for challenging the validity of a will, such as the following:

• The grantor was suffering from dementia or was otherwise not of sound mind when he or she wrote the trust instrument
• The trust instrument does not meet the formal requirements for legal validity
• The trust document is a forgery, and the grantor did not sign it and may not have even known that it existed
• The grantor signed the trust instrument as a matter of undue influence, because someone deceived or bullied him or her into signing

Resolving Disputes About the Interpretation of a Trust Instrument

Even if the trustee and beneficiaries agree that the trust instrument is valid, they may disagree about the meaning of one or more of its clauses, so they can ask the court for an official interpretation.  A ruling that contains such an interpretation is called declarative relief.

Breach of Trust Claims

Just as parties to a contract can sue over breach of contract, parties to a trust can sue over breach of trust.  Examples of breach of trust include lack of transparency on the trustee’s part or the trustee not following the instructions in the trust instrument.

Contact Tobin O’Connor Ewing About Trust Disputes

A Washington, D.C. estate planning attorney can help you resolve disputes arising from a trust.  Contact Tobin, O’Connor, and Ewing in Washington, D.C. or call 202-362-5900.

Source:

law.justia.com/codes/maryland/estates-and-trusts/title-14-5/subtitle-9/section-14-5-901/#:~:text=(a)%20(1)%20A,of%20a%20failure%20to%20act.&text=(10)%20Order%20other%20appropriate%20relief.&text=Disclaimer%3A%20These%20codes%20may%20not%20be%20the%20most%20recent%20version.