Putting assets in trust is one way to help assets pass smoothly to a beneficiary, whether the grantor is still living or has passed away. When assets are held in trust, the beneficiaries may have confidence that the assets are safe and being well-managed. Unfortunately, this does not always occur.
If you have concerns about how your trust is being managed or about how benefits are being distributed, it is important to get advice from a trusts and estates attorney. At Hackard Law, our Santa Clara County trust litigation lawyer could examine your unique situation and explain your legal options.
A trustee, whether an individual or a company, holds the legal title to the property and assets within a trust. The trustee’s responsibility is to manage these assets in accordance with the directions of the trust’s creator. Trustees may be appointed for various reasons, such as overseeing a trust after the grantor’s death or managing assets for a minor. They may also serve in contexts such as bankruptcy or for certain retirement and pension plans.
Under state law, trustees have a fiduciary duty to the trust’s beneficiary or beneficiaries. This means a trustee must act in the best interests of the beneficiaries when making management and administration decisions regarding the assets in trust. Trustee duties may include safeguarding assets, making investment decisions, and ensuring distributions are made as specified in the trust documents. If questions or disputes arise regarding trustee responsibilities, guidance from our legal professional with experience in Santa Clara County trust litigation may help clarify the process and protect the interests of everyone involved.
Conflicts that may result in trust litigation often arise from similar concerns. One that may affect the trust from the beginning is a lack of clarity in the trust documents. If grantors, beneficiaries, or co-trustees later have disputes about investments or distributions, ambiguous trust documents may not help resolve disagreements. Ultimately, they may turn to the courts for a legal interpretation of the documents instead.
Another source of trust litigation involves suspicions that the trustee has breached their fiduciary duties. Concerns may arise when investments perform poorly or assets appear unexpectedly diminished. The state’s courts take fiduciary responsibilities seriously, but proving a breach could be complicated. Our trust litigation lawyer may explain what is required in Santa Clara County to prove or defend against each element of your claim.
Disputes may also develop when trustees and beneficiaries disagree about asset distribution. Grantors may design trusts so that distributions are allowed only for certain reasons, such as education or medical expenses. However, beneficiaries and trustees may disagree about what qualifies, especially if the terms are unclear. If a trust has more than one beneficiary, disagreements may also arise about whether distributions are unequal or unfair. Disputes involving money require sensitivity and legal guidance to be addressed effectively.
If you believe your trust assets are being mismanaged or if you have trouble receiving the distributions you need, you should seek assistance. If you have concerns, addressing them early may help prevent future complications.
Taking legal action may be possible without creating a financial burden. At Hackard Law, if we do not win your case, you do not pay us. If you are unsure where to turn for help with your trust issues, reach out to our Santa Clara County trust litigation lawyer today. We could listen to your situation and advise you about what steps to take next.
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