Trust disputes are among the most emotionally charged and legally complex matters that families face. They arise when beneficiaries, trustees, or other interested parties disagree about the administration of a trust, the interpretation of trust documents, or the conduct of the trustee. The trust and estate litigation attorneys at SBEMP Attorneys LLP, the largest law firm in the Coachella Valley, represent trustees, beneficiaries, and other parties in California trust disputes.
What Triggers a Trust Dispute?
Trustee Misconduct or Breach of Fiduciary Duty
The trustee is a fiduciary, legally obligated to administer the trust in the best interests of the beneficiaries. Breaches include self-dealing, failing to make required distributions, making imprudent investments, failing to account properly, and favoring one beneficiary over others without legal justification.
Trust Contests
A legal challenge to the validity of the trust itself, typically alleging that the settlor lacked mental capacity, was under undue influence, or that the document was the product of fraud or mistake. California law sets specific procedures and deadlines for trust contests.
Interpretation Disputes
Trust documents are legal instruments that are not always written with perfect clarity. Disputes about the meaning of ambiguous language, the identification of beneficiaries, or the calculation of distributions may require court intervention for resolution.
Accounting Disputes
California law requires trustees to provide beneficiaries with regular accountings of trust assets, income, expenses, and distributions. When a trustee fails to provide accountings or beneficiaries dispute their accuracy, litigation may follow.
How Are Trust Disputes Resolved in California?
Negotiation and Mediation
Many trust disputes are resolved through negotiation between the parties’ attorneys or through formal mediation, a process in which a neutral third-party mediator helps facilitate settlement. Mediation is confidential and typically faster and less expensive than litigation.
Probate Court Proceedings
California trust disputes are heard in the probate division of the Superior Court. Petitions can be filed to compel accountings, remove a trustee, surcharge a trustee for breach, contest the validity of a trust, or resolve interpretation questions.
The No-Contest Clause
Many California trusts contain no-contest clauses that disinherit a beneficiary who contests the trust without probable cause. Before bringing any challenge, beneficiaries should consult with an experienced trust litigation attorney to assess whether the clause applies and whether the challenge is supportable.
SBEMP provides trust dispute and estate litigation representation to clients throughout Palm Springs, Indian Wells, Rancho Mirage, Palm Desert, La Quinta, and Riverside County. To discuss a trust dispute, contact our trust and estate attorneys today.
For more information or to request a consultation please contact the law offices of SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) by clicking here.
SBEMP LLP is a full service law firm with attorney offices in Palm Springs (Palm Desert, Inland Empire, Rancho Mirage, Indian Wells), CA; Indian Wells, CA; Costa Mesa (Orange County), CA; San Diego, CA; New Jersey, NJ; and New York, NY.
DISCLAIMER: This blog post does not constitute legal advice, and no attorney-client relationship is formed by reading it. This blog post may be considered ATTORNEY ADVERTISING in some states. Prior results do not guarantee a similar outcome. Additional facts or future developments may affect subjects contained within this blog post. Before acting or relying upon any information within this newsletter, seek the advice of an attorney.