What Is A Trust
A trust involves the designation of a fiduciary relationship. Within this relationship, the first party, known as the trustor, transfers property (generally a sum of money) to the second party, known as the trustee. This is transferred for the beneficiary which is the third party within a trust. The trustee is responsible for the management of the trust for the benefit of the beneficiaries. A trust clients commonly use is a testamentary trust, which is included in a will and is applicable after the death of the will's settlor. Trusts can also either be revocable and irrevocable, which is established in the will the trust was created in.
Disputes Over A Trust and Trust Litigation
Disputes commonly arise in figuring out how to administer a trust. Disputes over a trust often come about in the wake of the death of the loved one who created the trust. This is when trust litigation may become necessary. Litigation is heavily involved in cases where the trust entails a significant amount of money. Additionally, trust litigation occurs when it becomes necessary for the court to become involved with trust administration.
Examples of situations where trust litigation may be necessary:
- The trust is a non-standard or falsified document.
- The deceased creator of the trusted failed to assign a fiduciary.
- Stipulations within the trust were planned poorly.