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How Trust Structures Create Probate Conflict: And How to Stop it

_ProbateLitigation

Settling a Florida estate often involves resolving terms of both trusts, as well as the last will and testament. However, not every estate plan is created equal: and not all trusts operate the same way. Trust disputes all too frequently arise in the midst of probate. Disputes, such as whether a trust was revocable or irrevocable, can lead to significant, lengthy and costly probate litigation. This is particularly true if changes were made late in the testator’s life, impacting expected inheritances.

But, this does not mean that probate and resolving an estate HAVE to be messy affairs. This article aims to discuss some of the reasons why trust disputes arise in probate, common disputes that lead to litigation, and how to protect your own estate against such litigation.

We cannot clairvoyantly avoid every potential issue that might arise in administering our own probate estate. However, by seeing common hot-button issues we can guard our own estate against repeating mistakes others have made in the past. Read on for some general information: but recognize that the law is complex. For specific, official advice on navigating through your own estate or probate issue, contact an esteemed wills & probate or probate litigation attorney at Suncoast Civil Law.

Why Trust Disputes Arise in Probate 

A grantor might choose to modify or cancel a revocable trust within their lifetime. Conversely, an irrevocable trust cannot usually be changed after it has been finalized.

There are advantages and disadvantages to both structures. What can often arise in probate disputes, is a disappointed beneficiary claiming that the grantor was compromised when changes are made to the estate plan. Or, litigants may claim that assets were never transferred into the trust or that a trustee is not fulfilling their duties.

Trust Disputes

It’s not unusual for heirs and beneficiaries to argue over key issues in an estate plan. These disputes might include:

  • Accusations that someone manipulated a parent to alter the trust
  • Claims that a trustee did not properly place items in the trust
  • Beneficiaries confused or suspicious when distributions are unequal, or differ from what was expected
  • Trustees that fail to inventory or otherwise provide timely accountings of the trust as required.

Trust disputes can delay administration off an estate, and deplete the estate’s value as it is pulled through complex, lengthy litigation.

Personal Representative and Trustee Clash 

In estates with both a will and a trust, both the personal representative and the trustee will have legal duties. If an estate plan is not clear enough, disagreements can emerge over which asset falls under what, or whether instructions are being followed and distributions are fair.

Preventing Conflict

The best way to protect your estate against future litigation is to be proactive in the estate planning process. Do what you can to make documents and directives clear. Make updates as necessary. Ensure that the persons you name as trustees and personal representative are trustworthy, and openly communicate with your loved ones to avoid confusion or surprise.

Contact Suncoast Civil Law

If you are concerned about how an estate is being handled – you do not have to face the legal complexities at hand alone. Whether you are seeking guidance on how to create or clarify your estate plan, or you are facing a probate litigation case, the Sarasota probate litigation attorneys at Suncoast Civil Law can help.

Sources:

moneywise.com/news/top-stories/let-me-tell-you-something-brother-hulk-hogans-last-fight-might-be-between-his-heirs-over-his-25m-estate

barrons.com/articles/jimmy-buffett-estate-275-million-fight-estate-planning-203fa2cc