The Different Types of Trusts 

Different types of trusts can be involved in litigation, and each account will have its own set of litigating rules and requirements. At any rate, trusts can end up in litigation for several reasons, some of which include:

• Breach of fiduciary duty: Those designated as trustees are legally obligated to act in the beneficiaries’ best interests. If beneficiaries suspect the trustee is not fulfilling their fiduciary duty, they can file a lawsuit to have the trustee removed or replaced.
  
• Trust contests: Beneficiaries can challenge the trust’s validity for various reasons, including undue influence, lack of capacity, or fraud. If trust contestations are successful, the account may be modified or nullified.
  
• Trust modification: If a trust’s terms are no longer viable due to a change in law or circumstance, the parties can seek trust reformation or modification from the court.
  
• Disputed asset distribution: Disagreements concerning the valuation, management, or distribution of trust assets can cause litigating circumstances for all parties.

Moreover, if a trust’s terms are unclear or ambiguous, disputes can arise. As such, grantors must ensure their trust accounts are properly drafted and legally sound. It is recommended that grantors hire legal professionals to draft or review documents to ensure the terms are binding, enforceable, and in their best interest.

Preparing for Litigation 

When filing a trust lawsuit, parties should note a few essential steps. First, they must consult legal experts and determine if they have a valid reason to dispute the matter in court. If so, the contesting party should gather factual evidence and documentation that supports their position. This may include relevant details regarding the trust’s creation, the trustee’s actions, or other events that caused the dispute. Some examples include:

• Trust fund documents 
• Witness/expert witness testimonies
• Medical records
• Financial records
• Records of communication between parties
• Physical evidence, such as tangible and intangible assets
• Visual evidence, such as photos or videos

It is important to note that evidence must be presented to demonstrate relevance, authority, authenticity, and legal compliance. This is crucial in supporting one’s claims and defenses, and a trust litigation attorney can help aggregate evidence to develop a compelling argument. It is highly recommended that parties hire legal representation when involved in trust litigation. A trust litigation attorney can offer the right guidance and help you prepare for your day in court.

The Litigation Process

Once the party and their trust litigation attorney develop their case strategy and aggregate necessary documents, they can now file a complaint with the court. Essentially, the complaint is the lawsuit that begins the litigation process. It should describe the trust account, the disputed issues, the parties involved, and the relief sought.  

Once the lawsuit is reviewed and accepted by the court, a case number will be issued. At this time, a licensed process server must notify the defendants in the lawsuit by serving them with the complaint, civil cover sheet, and summons(es). Once served, the party has a certain period to respond to the complaint, typically about 20 days. 

When all parties are notified of the lawsuit, the litigation process officially begins. This may involve various stages, including motions, replies, discovery, and possibly trial. All parties can present their cases to the judge, who will decide based on the arguments and evidence presented. As such, the outcome of each proceeding will vary based on the nature of the dispute and each unique circumstance. 

It is important to note that some judges might defer the case to mediation before trial proceedings begin. In such cases, the parties will meet with a third-party mediator who helps them facilitate communication and reach a mutual agreement. If mediation is unsuccessful, the parties will proceed to trial. This can be a more expensive and time-consuming process, but it is sometimes necessary to resolve the matter. 

At the end of the trial, if either party is not content with the court’s ruling, they may have the right to appeal the case to a higher court. However, the specific procedures for each case will vary by the type of claim, state jurisdiction, and other case details. For this reason, all parties should consider the significance of legal counsel in guiding them through this complex process.

Conclusion

Trust litigation can be complex, emotionally charged, and expensive. As such, it is important to have a clear understanding of the legal principles involved. With the right preparation and knowledge, parties can navigate the process successfully. If you are involved in a trust account dispute, it is recommended that you consult a trust litigation attorney during a free consultation to discuss your options.