TRUST ADMINISTRATION
Understanding Trust Administration
Trust administration involves managing and distributing assets within a trust according to its terms. The trustee, appointed to oversee the trust, must fulfill their fiduciary duties, which include preserving and protecting the trust assets and ensuring they are distributed to beneficiaries as specified in the trust document.
Understanding Living Revocable Trust
Ensures Proper Asset Distribution
Trust administration ensures that assets are distributed according to the grantor’s wishes.
Avoids Probate
Trusts bypass the probate process, saving time and legal fees.
Reduces Legal and Financial Risks
Proper administration ensures compliance with laws, reducing the risk of litigation or financial penalties.
Maintains Privacy
Unlike wills, trusts remain private and do not become part of public records.
When is Trust Administration Necessary?
Death of the Grantor
Incapacity of the Grantor
Trust for Minor Beneficiaries
Ongoing Management of an Irrevocable Trust
TRUST LITIGATION
Understanding Trust Litigation
Trust litigation arises when disputes occur regarding the administration or validity of a trust. These disputes can involve trustees, beneficiaries, or third parties and often require legal intervention. Trust litigation ensures that the terms of the trust are honored, fiduciary duties are upheld, and beneficiaries receive their rightful assets.
Importance of Trust Litigation?
Trust litigation involves complex legal and financial matters. Hiring WaveCrest Legal ensures that your rights are protected, proper legal procedures are followed, and the best possible outcome is achieved.
Protects Beneficiaries’ Rights
Ensures beneficiaries receive what they are legally entitled to under the trust.
Resolves Disputes
Settles conflicts over trust terms, distributions, or trustee actions.
Holds Trustees Accountable
Corrects mismanagement and ensures trustees follow the trust’s terms.
Clarifies Ambiguities
Helps interpret and enforce the grantor’s intent when trust documents are unclear.
When is Trust Litigation Needed?
Breach of Fiduciary Duty
If a trustee mismanages assets, fails to follow the trust’s terms, or acts in their own interest instead of the beneficiaries’, legal action may be required to remove the trustee and recover losses.
Disputes Over Trust Validity
Litigation may be necessary if there are claims that the trust was created or modified under undue influence, fraud, or when the grantor lacked the mental capacity to make decisions.
Failure to Distribute Assets
If a trustee refuses to distribute assets as required, unnecessarily delays distributions, or withholds information from beneficiaries, a lawsuit may be needed to enforce the trust’s terms.