I'm a trustee and being forced into litigation neither I nor the trust can afford. What options do I have?

Trusts 5 views 5 answers
This family trust has frequently been misused, however I'm being singled out.

Attorney Answers

5
Patricia Mayer ·
I recently heard a probate judge remark that most of the cases coming through court these days are suits against trustees. Because a trustee is held to the highest standard of fiduciary care, they make easy targets for unhappy beneficiaries. And penalties can be severe. You need to find an attorney who would rather mediate than litigate, and try to resolve this outside of court. As another attorney mentioned, often the costs of pursuing or defending a lawsuit will drain the trust, leaving everyone bitter and unhappy. Good luck.
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Joseph Caleb MarkowitzLitigation LawyerLos Angeles, CA ·
The best option is to reach out to all of the parties, and try to convene a meeting or mediation to resolve the dispute without litigation. Point out to the parties that litigation will just destroy the thing that everyone is fighting about.
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Dennis Balsamo ·
Only trustees can misuse or allow a trust to be misused. Two wrongs do not make a right. Are there co-trustees? I agree with the learned counsel here that you should seek competent legal advice. If you breached your trustee duties you can be held PERSONALLY responsible to the trust beneficiaries. If you did nothing wrong trust assets can be used to defend you, and if the accusers' claims were found to be completely unsubstantiated they could be held PERSONALLY liable to reimburse the trust. My best advice is go seek local legal advice. Most law firms give free initial consultations. Call around and find one.
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Steven Zelinger ·
You obviously need an attorney to try to help you and point this toward a non-litigation resolution. Assuming you have been prudent in your role of trustee, other than time, how will this cost you money? Typically the trust would defend you.
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Brian Hogan ·
Alternative Dispute Resolution ("ADR") is the way to go. It is far cheaper and quicker than normal litigation.
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