Trustee – Protect the Estate & Your Position from Litigation

As a trustee, your actions are often closely examined—especially when beneficiaries disagree, question your decisions, or suspect mismanagement. Taking proactive steps to protect the estate and your position is essential, not only to fulfill your fiduciary duties but also to defend against potential litigation. Whether that means ensuring the estate plan is up to date or maintaining meticulous records, there are things you can do to reduce exposure to lawsuits and safeguard your role.

The skilled trust litigation attorneys at Hackard Law understand your predicament, and we are here to guide you. Our goal is to help trustees minimize liability, avoid disputes, and respond effectively when claims arise. Keep reading for more details about how you could ensure your actions are legally sound.

Key Actions to Protect Your Position as Trustee

To protect your position as a trustee in California, make sure you understand the trust documents and follow the instructions to the letter. Keep detailed and organized records of all transactions, communications, and decisions, while communicating openly with all beneficiaries.

You also want to avoid self-dealing by keeping trust assets separate from your own and never using funds for your own benefit. Likewise, when faced with a large discretionary distribution, it may be best to act with caution and secure a release from beneficiaries first.

Protect the Estate Before it Is Settled

Protecting an estate from litigation starts before it is settled. As the trustee, you should ensure that the estate plan is comprehensive, up to date, and that beneficiary designations are clear and conflict-free. If the estate includes a business, consider setting up a separate California limited liability company to shield your personal assets or take advantage of specialized trusts. Spendthrift and irrevocable trusts are commonly used to protect the estate’s assets from creditors and litigation.

Protections When Settling the Estate

Keeping heirs informed during estate settlement may go a long way toward preventing confusion and, consequently, litigation. Make sure to pay all of the estate’s legitimate debts before distributing assets to heirs and always keep a detailed accounting of all transactions, because the court would likely scrutinize all expenditures to prevent misuse of trust funds.

Connect With Us to Protect the Estate and Your Trustee Position from Litigation

If you are a trustee, you may need help to protect the estate and your position from litigation. At Hackard Law, our experienced legal counsel is tailored to your unique needs, whether you need assistance interpreting the trust’s terms, responding to beneficiary demands, or navigating a developing dispute.

With locations across the state of California, from Sacramento to Lathrop, we have an office near you. We focus on protecting trustees from claims and helping safeguard the estate against challenges. Reach out now to learn more about our contingency fee and discover why we only get paid when we secure a favorable judgment in your case.