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Common issues that lead to trust administration disputes

On Behalf of | Feb 3, 2025 | Estate Planning |

Trust administration can be complex, requiring careful management and attention to detail. Grantors typically create trusts to provide for their loved ones and make sure that the distribution of their assets is according to their wishes.

However, as with any complex process, disputes can arise. If you are a beneficiary of a trust, what issues can cause a trust administration dispute?

Key areas of conflict

Trust administration disputes can arise from a variety of issues. These disputes can occur when there are disagreements about the decisions of the trustee. Among the issues that commonly lead to trust administration disputes are:

  • Mismanagement of trust assets: Beneficiaries may allege that the trustee mismanaged trust assets. An example is when they make risky investments.
  • Breach of fiduciary duty: Beneficiaries may also claim that the trustee breached their fiduciary duty. This means that the trustee acted in their own interest rather than in the best interests of the beneficiaries.
  • Failure to distribute assets: Beneficiaries may dispute the decision of the trustee not to distribute assets or to distribute them in a way that does not follow the terms of the trust.
  • Accounting and recordkeeping disputes: Beneficiaries may challenge the accounting and recordkeeping practices of the trustee. This can include failing to provide sufficient information about trust assets and transactions.

In addition, conflicts of interest can cause disputes. Beneficiaries may allege that the trustee has a conflict of interest, such as when the trustee is also a beneficiary or has a personal interest in a trust asset.

Protecting your rights throughout the process

Trust administration disputes can be challenging to resolve. By seeking legal counsel, you may better navigate the process and ensure that the administration of the trust fulfills the wishes of the grantor. Additionally, having legal guidance may help you study your options, take informed actions and protect your rights and interests throughout the process.