Disputes in Trust Administration

Trust disputes can be complex and emotionally charged. They often happen for various reasons.

As the name suggests, a trust dispute is a conflict that arises over the creation, administration, or distribution of a trust.

A trust is a legal arrangement in which one party (the trustee) holds and manages assets for the benefit of another party (the beneficiary). Trusts can be created for various purposes, including:

• Estate planning
• Asset protection
• Charitable giving

Types of Trust Disputes

If one or more beneficiaries contest a trust, believing it to be invalid or unfair, they may challenge it in court, which can result in a trust dispute.

Other types of disputes include:

Misinterpretation of the Trust

A common type of trust dispute involves a disagreement over how the terms of the trust should be interpreted. This can include disputes over the distribution of assets or the rights and responsibilities of the trustee and beneficiaries.

Breach of Fiduciary Duty

The trustee has a fiduciary duty to act in the best interests of the beneficiaries. If the trustee breaches this duty, the beneficiaries may file a lawsuit to hold the trustee accountable.

Undue Influence

A beneficiary believes that another beneficiary or a third party exerted undue influence over the trust creator, they may challenge the trust’s validity.

Lack of Capacity

If the trust creator did not have the mental capacity to create the trust, it may be challenged as invalid.

Who Pays Legal Fees in a Trust Dispute?

In a trust dispute, legal fees can be paid from the trust itself. However, this is subject to the terms of the trust document and the discretion of the trustee.

In some cases, the trust document may specifically provide for the payment of legal fees in the event of a dispute. However, if the trust document is silent on the matter, the trustee may need to make a decision about whether to pay legal fees from the trust.

Additionally, if the trust dispute involves allegations of wrongdoing by the trustee, the court may order the trustee to pay legal fees out of his or her own pocket.

How to Handle a Trust Dispute?

If you’re facing a trust dispute, contact KTF Law Firm today. Our experienced attorneys specialize in trust administration and can provide you with the necessary assistance, including:

Understanding Your Rights: We’ll work with you to understand the terms of the trust agreement and explain your rights and obligations under the trust and Minnesota law.

Assessing the Strength of Your Case: We can evaluate the strengths and weaknesses of your case and help you develop a strategy for resolving the dispute.

Negotiating a Settlement: In some cases, it may be possible to resolve the dispute through negotiation or mediation. Our team can help you negotiate a fair settlement that protects your interests.

Representing You in Court: In the event that both parties fail to come to a mutual agreement through negotiation, we have the capability to provide legal representation for you in court.

Hire a Trust Dispute Attorney

With years of experience in trust and estate planning and litigation, we’re well-equipped to provide you with the necessary guidance and representation during a trust dispute.

• If you’re a trustee, we can help you interpret the trust documents, fulfill your duties, and defend against allegations of breach of fiduciary duty.
• If you’re the beneficiary, we can help you challenge the administration or distribution of the trust if you believe your rights have been violated.

Do you have questions or would like to talk to an experienced trust dispute attorney? Contact us today for a free consultation.