It is important that you are aware of what trust litigation is. It will be applicable after the death of the settlor or the creator of the trust. Here are the things that you should know about trust litigation:
What is trust?
The purpose of the trust is to hold the assets for beneficiaries. A trustee controls it. Trusts are created to prevent beneficiaries from receiving a huge amount of money. There will be a trust agreement wherein the settlor or the creator of the trust determines the terms of how and when the money should be distributed to the beneficiaries.
Basically, trusts are created for estate planning. Items that are placed in trusts evade probate. You should know that this process is lengthy because you need to get Barr & Young Attorneys or probate attorneys.
Who are the participants in a trust?
There will be four participants in a trust. The grantor is the person who created the trust. He/she can also be referred to as the “donor”, “settlor” or “trustor”. The trustee is the person or entity that is responsible to hold the assets or properties. The principal refers to the asset or property that are held in the trust. The beneficiary refers to the person who can receive the assets or properties in the trust.
What is the difference between revocable trust and irrevocable trust?
A revocable trust is a type of trust whereby the provisions can be changed depending on the grantor. The income earned is given to the settlor but in the event of death, it will be transferred to the beneficiaries. In the case of an irrevocable trust, it cannot be modified or terminated without the permission of the beneficiary. When the settlor transferred the assets into the trust, it will immediately remove all of his/her rights of ownership.
What is trust litigation?
It is a conflict concerning the rights to a trust. There are reasons for a settlor to form a trust but the most common are avoiding probate at death, curtail the estate taxes and stipulate care for a vulnerable dependent. Sometimes, problems will arise in the administration of trusts before or after the death of the grantor.
What makes a valid trust?
Litigation will ensue when the beneficiaries question the validity of the trust. For a trust to be valid, it should be clear that the settlor intended to create a trust. Another condition is that the settlor should have the mental capacity to create trust, which is free from other influences.
What to do when problems arise?
If you are beneficiary and you have contentions with the trust, the first thing that you should do is to look for an estate litigation lawyer near you. The good news is that there are many law firms that specialise in probate, estate and trust litigation. When you are looking for attorneys, do not hesitate to ask for the recommendation or referrals from friends. To narrow down your options, check the lawyer’s track record, years of experience and specialisation. With these things, you have a better outcome.