Disagreements about trusts are not unusual. If you and the other trustees cannot agree on how to administer the trust, or if you have disagreements about what the trust document says, you may need to go to court to have a judge resolve the issue.
In this article, we’ll discuss what a trust dispute is, what to do about it, and how to avoid it in the first place.
What is a trust dispute and what can cause one to happen?
A trust dispute is a disagreement between the trustees of a trust, or between the beneficiaries and the trustees, about how the trust should be managed or what the terms of the trust document mean. Trust disputes can arise for many reasons, including:
- Different interpretations of the terms of the trust document– If the terms of the trust are not clear, or if there is more than one way to interpret them, trustees and beneficiaries may disagree about what they mean.
- Disagreements about how the trust should be managed– Trustees may disagree about investment decisions, distributions of assets, or other aspects of trust administration. This can happen even if the terms of the trust are clear.
- Personal conflicts– Trustees and beneficiaries may have personal conflicts that make it difficult to work together.
What should you do if you’re in a trust dispute?
If you’re in a trust dispute, there are a few things you can do to try to resolve the issue:
- Talk to the other trustees or beneficiaries– If you’re having disagreements with the other trustees or beneficiaries, try to talk through the issues. It may be helpful to have a neutral third party, like a lawyer or mediator, help facilitate the conversation.
- Look at the trust document– Review the terms of the trust to see if they can provide guidance on how to resolve the dispute. This can be a helpful way to clarify the issue and reach an agreement on how to proceed.
- Get professional help– If you’re still not able to resolve the dispute, you may need to get professional help. This could mean hiring a lawyer, going to mediation, or asking a judge to decide the issue.
How can you avoid trust disputes?
Trust disputes can be costly and time-consuming to resolve, so it’s best to try to avoid them if possible. Here are a few tips:
- Communicate with the other trustees– Keep the lines of communication open with the other trustees. If there are disagreements, try to address them early on before they become bigger issues.
- Be clear about the terms of the trust– Make sure that the terms of the trust are clear and unambiguous. This can help avoid disagreements about what the trust document means.
- Get professional help– If you’re having trouble managing the trust or working with other trustees, consider getting professional help. A lawyer or financial advisor can provide guidance on how to administer the trust and avoid conflicts.
How can mediation help resolve a trust dispute?
Mediation is a process where an impartial mediator helps parties in a dispute reach an agreement. Mediation can be helpful in trust disputes because it allows the parties to have a structured conversation about the issues and come up with creative solutions that work for everyone. If you’re in a trust dispute, you may want to consider mediation as a way to resolve the issue.
What are the consequences of not resolving a trust dispute?
If a trust dispute is not resolved, it can have serious consequences for the trust and the people involved. Trustees may be liable for damages if they make decisions that are not authorized by the trust document or that are contrary to the wishes of the beneficiaries. The trust may also be subject to legal fees and expenses related to the dispute. In addition, the trust may be unable to function properly if the trustees are not able to work together. This can lead to a loss of assets and income for the beneficiaries.
If you’re in a trust dispute, it’s important to try to resolve the issue as soon as possible. Otherwise, it could have serious consequences for the trust and the people involved.
