TRUST ADMINISTRATION AND LITIGATION

Many inheritances in Florida involve a trust. Trusts are legal instruments that arise as a result of someone’s intention to create one. According to Black’s Law Dictionary, a trust is defined as an equitable and enforceable right to the beneficial enjoyment of property to which another person holds the legal title.¹ In other words, a property interest held by one person (the trustee) at the request of another (the beneficiary).

Trusts are a particularly useful estate planning tool and can provide layered protection for you and your family. They can (i) include restrictions on spending (e.g., Spendthrift trusts); (ii) limit trustee fees; (iii) decrease tax liability by avoiding probate; and (iv) protect the beneficiaries by the utilization of a trustworthy trustee, who is a fiduciary entrusted to monitor the assets, exercise sound judgment, and treat all beneficiaries (income or remainder) fairly and equally.

There are several different types of trusts, such as blind trusts, bypass trusts, charitable trusts, constructive trusts, generation-skipping trusts, pour-over trusts, and spendthrift trusts (just to name a few), all of which can be either “revocable” or “irrevocable.” Revocable trust terms can be changed by the creator (or settlor), and can be effective in eliminating probate and protecting assets. Irrevocable trusts are useful for avoiding undue influence, as they usually require the consent of all of the beneficiaries, and, at times, the court, prior to amending or changing their terms.

The crux of trust litigation almost always involves fiduciary duty – a standard of care and one of the original tenets of our legal system by which all trustees (and, in many cases lawyers) are bound. Trustees, as fiduciaries, are required to administer the trust in good faith, to control and protect trust property, to be loyal to all beneficiaries, to keep clear, distinct, and accurate records,² to show candor to and keep informed the beneficiaries of matters involving the trust, to act impartially with respect to the similar or differing interests of the beneficiaries,³ to act prudently, to exercise reasonable care, skill, and caution, and to act as prudent investor would considering the circumstances. The effectuation of these duties and how they impact the res (corpus, principal, or property within the trust) are the most common areas of litigation.

Trust litigation is also multifaceted; it involves many different parties with varying interests, responsibilities, and duties. From protecting personal representatives or trustees, or defending the rights and interests of beneficiaries, David E. Wolff Law is experienced and committed to preserving the creator of the trusts intent, defending the terms of the trust agreement at issue, and assuring that the trust is administered in a reasonably prudent fashion.

The firm has consulted and participated in trust disputes and fiduciary duty litigation involving hundreds of millions of dollars, and has worked alongside experienced c-level corporate trust officers in determining whether breaches of fiduciary duty occurred in the administration of the trust(s) at issue.

Contact Wolff Law for matters involving will contests, probate, trust litigation, breach of fiduciary duty, surcharge actions, or financial elder abuse.

¹ http://thelawdictionary.org/trust/
² http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/Sections/0736.0813.html
³ Peter B. Tiernan, A Trustee’s Duties and Responsibilities Under Discretionary Invasion Provisions, 79 Fla. B. J. 50 (October 2005).