Trust Litigation Attorney In West Palm Beach, Florida |
Trust litigation can arise when beneficiaries or family members question whether a trust reflects the creator’s intentions or whether a trustee has handled trust assets properly. Disputes involving undue influence, mental capacity, trust terms, or the administration of estate and trust assets can place added pressure on families who are already coping with the loss of a loved one.
At the Law Offices of Daniel A. Seigel, P.A., we represent heirs, beneficiaries, and trustees in trust and estate litigation involving estates, wills, and trusts. Our team provides responsive, personalized support for people facing fiduciary disputes that carry both legal and emotional weight.
When assets are at stake, early support may help you address trust disputes before they place further strain on beneficiaries, family relationships, or the administration of the trust. To speak with the Law Offices of Daniel A. Seigel, P.A. about trust litigation in West Palm Beach, call (561) 393-6005(561) 393-6005 or use the online contact form to schedule a consultation.
Key Takeaways About Trust Litigation in West Palm Beach, Florida
- Trust litigation can arise when beneficiaries question a trust’s validity, administration, or distribution.
- Florida trust law imposes fiduciary duties on trustees, including duties of loyalty, information, and reporting.
- Common trust disputes may involve undue influence, lack of capacity, breach of trust, or disagreements about trust terms.
- Judicial trust proceedings in Florida generally begin with a complaint and proceed under the Florida Rules of Civil Procedure.
- Beneficiaries may seek remedies when a trustee violates a duty owed to them.
- Some trust disputes may be addressed through mediation or negotiated resolution instead of a full trial.
Trust Litigation And Fiduciary Duty Under Florida Law |
Trust litigation in West Palm Beach can involve disputes over fiduciary duty, trust administration, undue influence, and breach of trust. These matters may arise when beneficiaries question how a trustee has handled trust assets, whether required information has been shared, or whether the trust reflects the creator’s intentions.
- Fiduciary Duty Under Florida Statutes: Trust litigation in West Palm Beach often involves issues related to fiduciary duties as outlined in Florida Statutes Chapter 736, also known as the Florida Trust Code. A trustee is bound by law to administer the trust solely in the interest of the beneficiaries.
- Trust Administration Explained: Statute 736.0813 of the Florida Trust Code details the duties of a trustee, including the duty to inform and report. Trustees must inform qualified beneficiaries about the trust and its administration and act in the interests of the trust.
- Trust Dispute Resolution Framework: Chapter 44 of the Florida Statutes encourages alternative dispute resolution methods, highlighting mediation and arbitration as effective tools.
- Addressing Undue Influence: Florida Statute 736.0406 applies to trusts and provides that if the creation, amendment, or restatement of a trust is procured by fraud, duress, mistake, or undue influence, the trust, or the affected part of it, is void.
- Breach of Trust Claims: Under Florida Statute 736.1001 beneficiaries can seek remedies for breaches of trust, defined as a violation by the trustee of a duty the trustee owes to the beneficiary.
- Trust Contest Procedures: Florida Statute 736.0201 provides that judicial proceedings concerning trusts generally begin by filing a complaint and proceed under the Florida Rules of Civil Procedure. For trust contests specifically, Florida Statute 736.0207 states that, in an action to contest the validity or revocation of all or part of a trust, the contestant has the burden of establishing the grounds for invalidity. If the issue is not whether the trust is invalid, but whether its terms should be corrected to reflect the settlor’s intent, Florida Statute 736.0415 addresses reformation to correct mistakes.
- Alternatives to Contesting a Trust for the Protection of Interested Persons and Beneficiaries: The Florida Trust Code upholds the rights of interested persons and beneficiaries by offering multiple options for seeking justice concerning a trust, other than having the trust declared invalid. One option is a nonjudicial settlement agreement. It avoids the uncertainty that accompanies trying a case through court. A skilled litigation attorney can negotiate a proper settlement, saving significant time and money.
What Constitutes a Trust in Florida?
In Florida, a trust is a legal arrangement where the person making the trust, known as the grantor or settlor, transfers assets into it and designates a trustee to manage the assets for the benefit of the named beneficiaries of the trust. In South Florida, people often employ trusts as part of their estate planning to manage and distribute assets according to the grantor’s wishes and potentially avoid probate. Types of trusts include:
Testamentary Trusts
These trusts are established through a will and take effect after the grantor’s death.
Living Trusts
Established during the grantor’s lifetime, living trusts can be revocable or irrevocable. A revocable trust can be altered or revoked by the grantor during their lifetime. An irrevocable trust is generally more difficult to change, but Florida law allows modification in certain circumstances, including some nonjudicial modifications after the settlor’s death and court-approved modifications in appropriate cases.
Reasons for a Trust Dispute
A trust dispute could concern the validity of a trust document, the administration of the trust, or the distribution of the trust assets, and may include proceedings to:
(a) Determine the validity of all or part of a trust;
(b) Appoint or remove a trustee;
(c) Review trustees’ fees;
(d) Review and settle interim or final accounts;
(e) Ascertain beneficiaries; determine any question arising in the administration or distribution of any trust, including questions of construction of trust instruments; instruct trustees; and determine the existence or nonexistence of any immunity, power, privilege, duty, or right;
(f) Seek a declaration of rights; or
(g) Determine any other matters involving trustees and beneficiaries.
Standing to Contest a Trust Through Trust Litigation
Trust litigation involves disputes over a living, irrevocable, or any other trust between beneficiaries, trustees, or other interested parties. Concerning estate disputes, our trust and estate litigation attorney in West Palm Beach knows that to contest a trust in Florida, an individual must have standing, or a direct interest in the trust, such as a beneficiary or a trustee. In general, the following people have standing in the eyes of the law:
- Interested Persons. An interested party may petition the court regarding a trust.
- Beneficiaries, including contingent beneficiaries. The Florida Trust Code defines a “beneficiary” as a person who has a present or future beneficial interest in a trust, vested or contingent, or who holds a power of appointment over trust property in a capacity other than that of trustee.
- Trustees, the individuals designated in trusts to distribute assets to its beneficiaries in accordance with the terms of the trust.
- Settlors/Grantors/Trustors. While a trust remains revocable, Florida law provides that the trustee’s duties are owed exclusively to the settlor. After a trust becomes irrevocable, whether a settlor may bring a claim can depend on the terms of the trust, the nature of the claimed interest, and the specific issue being raised.
- Creditors. In some circumstances, creditors could potentially have standing to sue a trustee to the extent necessary to reach trust assets to satisfy a debt or judgment against the trust or the person who created it.
An Experienced Trust Litigation Attorney Explains the Grounds for Trust Litigation
As the trust litigation lawyers at the Law Offices of Daniel A. Seigel, P.A. can attest from extensive experience, an individual must have valid grounds for pursuing trust litigation. For example, Florida law provides that: “If the creation, amendment, or restatement of a trust is procured by fraud, duress, mistake, or undue influence, the trust or any part so procured is void.”
Common grounds for trust litigation include:
Lack of Capacity
An individual may contest a trust on the grounds that the grantor lacked the capacity to comprehend the implications of creating or modifying the trust. The standard for a settler’s capacity to create, amend, revoke, or add property to a revocable trust is the same as the standard for a testator’s capacity to create a will under Florida law. That is, a settler has the capacity to create a revocable trust if they are over the age of 18 and of sound mind. Soundness of mind requires that the settler knows: i) the nature and extent of the property to be disposed of; ii) their relation to those who would naturally inherit from them; and iii) the practical effect of the document they are executing.
Undue Influence
A party seeking to contest a trust might also argue that someone exerted excessive pressure on the grantor to change the trust in their favor. If a trust is the product of undue influence, then the trust, or the relevant portion of the trust, is invalid.
A trust is presumed to be the consequence of undue influence if the person alleged to have exerted such influence is a substantial beneficiary of the trust, had a confidential relationship with the settlor, and actively procured the document.
The Florida Supreme Court has identified a set of criteria to consider in evaluating whether a beneficiary “actively procured” the document at issue. These factors were established in the In Re Estate of Carpenter, 253 So. 2d 697 (Fla. 1971), and have been widely used to assess claims of undue influence.
The non-exclusive criteria considered in determining whether undue influence has been exerted include:
- The presence of the beneficiary at the time the trust was executed.
- The presence of the beneficiary at the time the settlor expressed a desire to create the trust.
- A recommendation by the beneficiary of an attorney to draft the trust.
- Knowledge of the contents of the trust by the beneficiary prior to its execution.
- Giving instructions on preparation of the trust by the beneficiary to the attorney drafting the trust.
- Coordinating witness to the execution of the trust by the beneficiary.
If undue influence is proven, the trust may be declared invalid, either partially or in whole, depending on the extent of the undue influence. The burden of proving undue influence generally lies with the person challenging the validity of the document, but if a confidential relationship is established, the burden may shift to the proponent of the will or trust to prove that there was no undue influence.
Fraud or Duress
A party contesting a trust might argue that the trust was procured by fraud or duress, rendering the trust void and unenforceable.
Improper Execution
Under Florida law, a trust does not always need to be evidenced by a written trust instrument, because an oral trust may be established by clear and convincing evidence unless another law requires formalities. At the same time, Florida law does impose specific formalities in certain situations, including formalities required for revocable trusts with testamentary aspects. For that reason, whether execution defects support a trust challenge depends on the type of trust and the facts surrounding its creation.
Revocation
If the grantor revoked the trust before their death, it may no longer be valid. Evidence of revocation might include written and signed statements by the grantor revoking the trust and/or statements from individuals who witnessed the revocation.
The Steps Involved in Trust Litigation
As a trust litigation lawyer would guide a client, trust litigation involves the following steps:
Filing a Complaint
The process to contest a trust begins with filing a complaint in the circuit court. Venue is proper in any county where venue is proper under general venue principles under Chapter 47, Florida Statutes, as well as “any county where the beneficiary suing or being sued resides or has its principal place of business” or “the county where the trust has its principal place of administration.”
The complaint should outline:
Standing: The plaintiff’s interest in the trust, such as a beneficiary or a trustee.
Grounds for Contesting: The reasons the plaintiff believes the trust is invalid, such as undue influence or lack of capacity.
Requested Relief: The relief sought by the plaintiff, e.g., invalidating the trust.
Discovery
The discovery process involves gathering evidence to support the grounds for contesting the trust. This can include documents requests, interrogatories, requests for admissions, and depositions.
Mediation and Settlement
Before going to trial, many trust disputes are resolved through mediation, which involves a neutral third party aiding the party in reaching an amicable resolution of the dispute. If a settlement is reached, the terms will be documented, and the court will typically approve it.
Trial
If mediation fails or the case does not resolve by settlement, the case proceeds to trial.
Post-Trial and Appeals
If a party is dissatisfied with the trial court’s decision, they can file post-trial motions to address issues that arose during the trial. They can also appeal the decision to the appropriate appellate court, which will review the trial court’s decision for legal errors.
Do I Need a Trust Litigation Lawyer in West Palm Beach, Florida?
Working through the complexities of trust litigation lawsuits can overwhelm anyone, particularly when questions of validity, undue influence, or breach of fiduciary duty are involved. Hiring an experienced trust litigation lawyer to interpret intricate legal documents and statutes as they uphold the intentions of the trust creator is important.
Trust litigation cases come with high emotional and financial stakes as beneficiaries and family members seek to protect their rights and preserve the legacy of their loved one. A skilled trust litigation lawyer provides legal guidance and emotional support as they guide you through the stressful litigation process and safeguard your assets.
When Assets are at Stake, You Need an Experienced Law Firm. Trust the Law Offices of Daniel A. Seigel, P.A. in West Palm Beach, Florida for Trust Litigation
Managing trust litigation can be daunting, which is why hiring an experienced trust litigation lawyer is in your interest. The Law Offices of Daniel A. Seigel, P.A. is here to provide the legal guidance and advocacy you need. Our law firm recognizes the emotional and financial impact probate disputes can have, and we are committed to helping you resolve these issues with professionalism and integrity.
Contact our West Palm Beach office today at (561) 393-6005(561) 393-6005 or complete our online form to schedule a consultation.
When assets are at stake, you can rely on the Law Offices of Daniel A. Seigel, P.A. to fight for your interests and uphold the legacy of your loved ones.