A trust is just one of many estate planning tools that a Minnesota resident can choose. A recent post on this blog discussed how a trustee in Minnesota has a right to make reasonable investment decisions on behalf of the trust and its ultimate beneficiaries. While many if not most trustees do just that, some trustees are irresponsible or careless about how they invest or use trust funds.
Particularly when there is a lot at stake with respect to the trust, mismanagement on part of the trustee can spell disastrous consequences for family members and friends who are counting on receiving funds from the trust at some point.
Moreover, it would be profoundly disappointing for a family member to realize that the person will not get an inheritance that the person’s loved ones wanted him or her to have because of the irresponsibility of a third party.
Minnesota law does afford trustees a lot of discretion to make financial decisions on behalf of a trust, even if the trustee’s decisions turn out to be bad ones. However, a trustee’s discretion is not unlimited. If a Minnesota family feels that a trustee is not being responsible with the funds in a family trust, then that family has legal options.
With respect to these legal options, our firm represents clients in cases where a trustee is accused of not managing the assets of a trust consistently with Minnesota’s “prudent investor” rule. We understand the complexities surrounding trust litigation, but we also well evaluate people’s ultimate goals and make sure that they understand the possible costs, risks and rewards of each of their legal options.