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A trust is an important estate planning tool that allows a grantor or trustor (the person creating and funding the trust) to transfer assets into the trust and assign a beneficiary designation for each of the assets, allowing the assets to be transferred to its beneficiaries shortly after the death of the trustor and without the need of going through the probate process. The trust can be managed by a trustee, who is an individual in charge of handling trust assets and distributing them to the beneficiaries after the trustor dies. A trustee has certain fiduciary duties to fulfill, but when issues arise, disputes between beneficiaries and trustees can be all too common. Trust litigation can offer a path to resolving these disputes.

The attorneys at Bloodworth Law, PLLC, explain how trust litigation works in Florida and go over why working with a trust litigation attorney may be helpful for your case. If you have questions regarding trust litigation matters in Florida, contact Bloodworth Law, PLLC, at 407-449-8958.

What Is Trust Litigation?

Trust litigation addresses legal disputes that may arise in relation to trusts, such as disagreements or conflicts between the trustee and the beneficiary or among multiple beneficiaries regarding the administration or distribution of the trust assets. For example, suppose you are the beneficiary of a trust your father created for you. After your father passes away, you contact the person he assigned as the trustee of your trust. The trustee ignores your calls and messages, fails to provide any information about the trust or its assets, and does not communicate with you or the other beneficiaries. In this case, you may need to resort to trust litigation to get an adequate response and receive the assets assigned to you.

This is just one of many common examples of matters that can lead to trust litigation. Other common reasons include allegations of breach of fiduciary duty by the trustee, disputes over the interpretation or validity of the trust document, challenges to the trustee’s actions or decisions, claims of financial mismanagement, or accusations of undue influence or fraud. In these cases, it is a good idea to seek the advice of a skilled trust litigation attorney to ensure your rights as a beneficiary or trustee are protected.

What Are Some of the Most Common Reasons to Initiate Trust Litigation in Florida?

One of the most common reasons to initiate trust litigation in Florida is when there are allegations of breach of fiduciary duty by the trustee. This can occur when the trustee mismanages the trust assets, fails to act in the best interests of the beneficiaries, or engages in self-dealing or conflicts of interest.

Usually, a lack of willingness to communicate with beneficiaries or to provide more detailed financial information about the trust assets and how they are being managed is frequently the cause of many trust-related lawsuits. In short, whenever one or more beneficiaries of the trust have a reason to believe that the trustee is engaging in wrongdoing or purposefully avoiding communication with the beneficiaries, the next reasonable step may be to initiate trust litigation with the help of a skilled trust litigation attorney.

When Can a Trust Be Contested?

In Florida, there are several grounds on which the validity of a trust can be contested. One common ground is the lack of mental capacity, which means that the person who created the trust did not have the intellectual competence to understand the nature of their actions at the time of creating the trust, remember their relationship with the trust beneficiaries, or fully grasp the concept of placing assets in the trust for posthumous distribution. For example, if a person had been diagnosed with dementia at the time the trust was created, the trust may be considered invalid as the trustor lacked the mental capacity for the process.

Another ground is undue influence, which occurs when someone exerts psychological pressure or manipulates the trust creator into making decisions that go against their true intentions. Other common grounds for contesting the validity of a trust in Florida include fraud, duress, mistake, or revocation by the trust creator. It is important to mention that a beneficiary may not have enough grounds to initiate trust litigation simply because they are unhappy with the assets they received or disagree with the trust terms in any way. It is always a good idea to consult a trust litigation attorney to ensure that you have enough valid reasons to contest any aspect of a trust.

What Kind of Damages Are Available for a Trust Litigation Case?

In trust litigation cases, the court may issue a few different types of remedies or relief, depending on the specifics of the case. In general, the most common types of remedies for trust litigation cases are equitable relief, determination of title to property, and certain monetary damages such as surcharge or double damages.

Equitable relief does not typically result in any monetary payment to the plaintiff but may involve the court ordering the suspension or removal of a trustee. Determination of title involves giving back the title of a property to its rightful beneficiaries if the property was wrongfully taken from the trust. In some cases, you may obtain monetary compensation against the trustee (called a surcharge) or against the party who may have wrongfully taken property from the trust (double damages). You should speak to a trust litigation lawyer to determine what remedies or damages may be available for your case.

The legal team at Bloodworth Law, PLLC, is here to assist you with your legal matters concerning trust disputes and trust litigation in Orange County. Contact us directly at 407-449-8958 to schedule an initial consultation to discuss your case.