Trust litigation can be complex and emotional, especially when disputes arise between family members or beneficiaries and trustees. Trusts are designed to protect assets and ensure that they are distributed according to the wishes of the person who created the trust (the grantor). However, disagreements over managing or distributing trust assets can lead to legal disputes requiring court intervention.
At Douglass & Runger, we understand the difficulties that trust litigation can present. Our team of experienced trust litigation attorneys in Memphis is here to guide you through the process with professionalism, friendliness, and support. Whether you’re a beneficiary challenging the actions of a trustee or a trustee facing a legal dispute, we can help you protect your rights and ensure that the trust is administered according to Tennessee law.
What is Trust Litigation?
Trust litigation refers to legal disputes related to a trust’s creation, management, or distribution. These disputes can arise for various reasons, including disagreements over the interpretation of the trust’s terms, accusations of mismanagement by the trustee, or challenges to the validity of the trust itself. Common issues in trust litigation include:
- Breach of Fiduciary Duty: Trustees have a legal obligation to act in the best interests of the beneficiaries. If a trustee is accused of mismanaging the trust assets or failing to follow the terms of the trust, they may be sued for breach of fiduciary duty.
- Trust Contest: A trust contest occurs when someone challenges the validity of the trust. This can happen if there are concerns that the grantor was not of sound mind when the trust was created or if there is evidence of fraud, duress, or undue influence.
- Trustee Removal: Beneficiaries may seek to remove a trustee if they believe that the trustee is not fulfilling their duties or is acting in their own self-interest rather than the interests of the beneficiaries.
Trust Litigation in Memphis and Tennessee
Trust litigation in Tennessee is governed by state law, including the Tennessee Uniform Trust Code. The process typically involves filing a lawsuit in probate court, where a judge will hear the case and make a determination based on the evidence presented. Depending on the complexity of the case, trust litigation can be lengthy and costly.
If you are involved in a trust dispute in Memphis, it’s important to work with an experienced trust litigation attorney who understands Tennessee law and can help you navigate the legal system. At Douglass & Runger, we have extensive experience representing clients in trust litigation cases, and we are committed to protecting your rights and helping you achieve a favorable outcome.
Common Reasons for Trust Litigation
Trust litigation can arise for many reasons, but some of the most common causes of trust disputes include:
- Mismanagement of Trust Assets: Beneficiaries may accuse a trustee of mismanaging the trust’s assets, which can lead to financial losses or reduced distributions.
- Lack of Transparency: Beneficiaries are entitled to information about the trust’s management and the assets it holds. If a trustee fails to provide this information, it can lead to disputes and legal action.
- Disputes Among Beneficiaries: Family members may disagree about the distribution of trust assets, leading to litigation.
- Challenges to the Trust’s Validity: If there are concerns that the trust was created under questionable circumstances, beneficiaries or other interested parties may challenge its validity in court.
Understanding the cause of the dispute is the first step in resolving the issue. Whether you are a beneficiary or a trustee, our team at Douglass & Runger can help you identify the underlying issues and develop a legal strategy to address them.
Are Trusts Protected From Lawsuits?
One of the primary benefits of trusts is their ability to protect assets from creditors and lawsuits. However, this protection is not absolute. While Revocable Trusts do not offer significant protection from lawsuits or creditors, Irrevocable Trusts can provide a higher level of protection. That said, even Irrevocable Trusts can be subject to legal challenges, especially if there are concerns about the trustee’s actions or the validity of the trust.
In Tennessee, trust assets may be protected from certain types of claims, but this protection can be limited if the trust is improperly managed or if there is evidence of fraud or wrongdoing. If you are concerned about protecting your trust assets, it’s important to consult with a trust litigation attorney who can help you understand your rights and options.
Trust Litigation and Trustee Responsibilities
Trustees have a fiduciary duty to act in the best interests of the trust’s beneficiaries. This means that they must manage the trust’s assets prudently, follow the terms of the trust, and avoid conflicts of interest. Trustees can be held legally accountable through trust litigation when they fail to meet these obligations.
If you are a trustee facing a legal dispute, it is essential to work with an attorney who can help you navigate the complexities of trust litigation and protect your rights. At Douglass & Runger, we have extensive experience representing trustees in litigation and can help you develop a strong defense strategy.
