What is Trust Litigation? Understanding Trust & Estate Litigation in Florida
When you hear the term “trust litigation,” what comes to mind? It may drum up some challenging emotions, as this area of law encompasses many sensitive topics. Trust litigation can be emotionally taxing due to several factors. It often involves family disputes, which are particularly stressful when they occur after a loved one’s death. The process can be lengthy and complex, causing anxiety and uncertainty, especially as beneficiaries may be unable to access their inheritance during this time. Not to mention, the public exposure of private matters during litigation can also be particularly difficult.
Aside from the emotional toll, there are also specific considerations when it comes to Florida trust litigation. Getting help from an experienced attorney and having knowledge about the process can help better prepare you to navigate trust litigation. As such, in this blog, we will help break down what trust litigation is and what you need to know when it comes to litigating trust and estate disputes in Florida.
What are Trusts?
Trusts are legal arrangements that are used to help manage a person’s assets, which, within the context of litigation, are considered to be anything of value that an individual or company owns. These can include both tangible and intangible items, and common examples include: real estate properties, vehicles, equipment, cash, investments, and other high-value personal belongings like jewelry.
In a trust, one party (the trustee) holds and manages assets for the benefit of another party (the beneficiary). The person who creates the trust is known as the grantor or settlor, and they decide the rules about how the assets contained within the trust will be used.
What is Trust Litigation?
Trust litigation is a legal process that arises when there are disputes over a trust. These disputes can involve numerous issues, from the administration of the trust to the interpretation of its terms.
Initiating a Trust Case
Trust litigation begins when a beneficiary or a potential beneficiary has a reason to challenge the administration or execution of a trust. For Florida trust litigation cases to begin, the party must have legal standing, which means they must be directly affected by the outcome of the case. Typically, those with standing would include beneficiaries, trustees, or anyone who could stand to benefit from the trust.
Common Reasons for Trust Litigation
There are several reasons why trust litigation might occur. One of the most common is a breach of fiduciary duty. This happens when a trustee does not act in the best interest of the beneficiaries. For instance, if a trustee mismanages trust assets or fails to account for the income and expenses of the trust, beneficiaries might initiate litigation.
Other reasons for trust litigation might include disputes over the interpretation of the trust document, allegations of fraud or undue influence in the creation of the trust, or disagreements over who should serve as trustee.
Types of Trusts Involved in Litigation
Various types of trusts can be involved in trust litigation. These include revocable trusts, which can be changed or terminated by the grantor during their lifetime, and irrevocable trusts, which cannot be altered once they have been finalized. Other types include special needs trusts, charitable trusts, and spendthrift trusts, each of which has unique provisions and purposes.
Intricacies of Trust Litigation in Florida
Trust litigation in Florida has its own intricacies. In July 2021, Florida adopted the Florida Uniform Directed Trust Act (FUDTA), which provides guidelines for the roles and responsibilities of trust directors and trustees, allowing for a clear division of duties in the administration of a trust. This means that certain powers traditionally held by trustees can be assigned to trust directors, thus providing more flexibility in how a trust is managed. This separation of roles can lead to more specialized management of the trust, with each party focusing on their assigned responsibilities.
Another Florida-specific aspect is the state’s statute of limitations for trust disputes. Under Florida law, a beneficiary generally has four years from the date of the trustee’s breach to file a lawsuit. However, there are situations in which the limitations period would be substantially shorter. One specific example that would shorten the statute of limitations to six months occurs if the trustee provides the beneficiary with a “trust disclosure document” that adequately discloses the trustee’s breach. In this case, the trustee would also need to file a trust limitation notice.
The Importance of Legal Guidance
As you can likely conclude, having experienced legal counsel is crucial when you consider the complexities and specific legal nuances involved in Florida trust litigation. A knowledgeable attorney can provide guidance throughout the process, from interpreting the trust document to representing your interests in court. Whether you’re a trustee or a beneficiary, understanding the basics of trust litigation and the specific nuances in Florida can help you protect your rights and interests.
Our seasoned attorneys at Avera & Smith are standing by, ready to help with inheritance, will, trust, and estate disputes. We offer free consultations, so contact us as soon as you think you may have a trust dispute. We will fight for you to get the best possible outcome so that you get the justice that you deserve.