Trust Administration and Litigation

Trust Administration is the process whereby the trustee, that is, the person put in charge of handling the trust, carries out the directions and instructions according to terms and conditions contained in the trust document.  The trustee is responsible for administering the trust, which most often involves being responsible for and overseeing the dispensation of financial resources to those identified in the trust as beneficiaries.  Often, the purpose of a trust is to ensure that assets lasts as long as possible and are used exclusively for the benefit of the beneficiaries.  A trustee is a fiduciary:  one who holds property for the benefit of another.  As a fiduciary, a trustee has specific legal duties and responsibilities to the trust beneficiaries. A trustee who violates his duties and does not properly administer a trust can be personally liable to the trust beneficiaries.  Many times, a trustee may operate in that capacity for months or years, overseeing the release of assets from the trust in a timely manner and in accordance with express directions.  For example, grandchildren may receive income from a trust for an extended period of time while they are minors and pursuing their education, and then later, when reaching adulthood, they may receive all or greater portions of the remaining trust.  Understanding the trustee’s role and responsibilities are critical for a successful trust administration.  It is imperative that a trustee seek legal advice before assuming their duties and responsibilities to ensure that they understand what the trust requires of them and what the law demands of them.  There are specific accounting requirements and financial record-keeping that must be adhered to for the duration of the trust.  There are also notices that must be provided to beneficiaries, and investment and tax decisions that must be followed and maintained.  There are specific fiduciary duties required of a trustee:  a trustee must exercise reasonable care, skill, and caution.  Taking on the role of a trustee without legal advice and guidance is unwise and dangerous.  Let our attorneys advise you before you take any actions that may cause the beneficiaries’ harm or jeopardize you to liability.  We can walk you through the “do’s and don’ts” and give you guidance so that you can properly administer the trust you are charged with administering for the benefit of the trust beneficiaries.

Trust Litigation is what sometimes happens when a trustee does not exercise reasonable care, skill, and caution.  Beneficiaries are harmed by the trustee’s actions that were not sound and reasoned or are in violation of the trust terms.  We can advise a trust beneficiary of their rights and offer solutions and options to help resolve a trust dispute with the trustee. Or, if you are a trustee facing legal action from a beneficiary, we can advise, represent you and assist you in resolving the matter.  A trustee who ignores reasonable requests from a beneficiary or fails to follow the terms and directions of the trust document may face removal as trustee and may incur personal, financial liability.  Seeking assistance and legal advice can help mitigate the damages and a trustee’s liability and can help resolve the dispute.