Minnesota Lawyers Helping Resolve Trust Disputes

In many ways, trust disputes are similar to probate disputes. Trust disputes can involve the same emotional and psychological aspect as probate disputes. Both kinds of disputes also involve questions of inheritance; both may involve issues of undue influence, lack of capacity and other grounds for challenge. At the same time, there are important differences. Probate matters always require some level of court involvement to one degree or another. Trusts, on the other hand, frequently do not require court supervision unless there is a dispute that cannot be resolved informally. Someone involved in a legal dispute over a trust or contemplating a lawsuit over the provisions of a trust should consult an attorney who understands the complexities and costs of trust litigation.

Experienced Trust Litigation Attorneys

At the St. Paul, Minnesota, law firm of Mason & Helmers, the attorneys advise and advocate for clients in trust litigation. If they are unable to resolve a dispute with informal discussions or through alternative dispute resolution techniques such as mediation or arbitration, they represent clients aggressively in court. They use their extensive experience handling inheritance litigation issues advise and represent clients.

Types Of Trusts Involved In Disputes

Trust disputes take on many forms, depending on the specifics of the case and the trust involved.

For example, revocable trusts, also known as living trusts, can generally be modified even after they have been created as long as the creator of the trust is living. As long as all parties agree, changes can be made. However, disputes may arise over who has the authorization to make those modifications or how the process should be carried out. Additionally, even when modifications appear to be legitimate, there could be disputes over whether or not the creator of the trust still had the testamentary capacity to make changes to their estate plan.

Irrevocable trusts, on the other hand, generally cannot be changed after they are created. But these types of trusts can still lead to disputes. There could be accusations of undue influence or other such activity, especially if the irrevocable trust seems to significantly benefit one beneficiary over the others. Additionally, if modifications are attempted, there could be disputes over whether or not those are even permitted under the current structure of the trust.

Issues with trustees can also occur. A dispute may not involve alterations to the irrevocable trust but rather allegations that the trustee is not performing their duties correctly while administering that trust.

Charitable trusts can be used to leave assets to charity, but these can also be the subject of disputes. Beneficiaries may want the assets to stay in the family and, again, questions about undue influence and lack of capacity can arise.

Common Questions To Ask

Many trust disputes arise when beneficiaries feel that they are not getting information they want. Sometimes beneficiaries are not getting information to which they are entitled, sometimes they are seeking information to which they are not entitled, and sometimes they don’t know how to ask for the information they want.

When clients seek to begin trust litigation, the firm’s lawyers walk them through the process so that they know exactly what will happen and what they are likely to gain. Clients respond to questions such as:

• What are your goals?
• What is the basis for your dispute?
• Is the benefit worth the financial and emotional costs?

The answers to these questions help clients make informed decisions about moving forward with trust litigation. They also help clients step back from what is often a highly emotional situation and analyze the matter more objectively.

Issues In Trust Litigation

The firm handles trust litigation arising from issues such as these:

• Fiduciary issues, including whether the trustee engaged in self-dealing, invested the assets prudently, made a proper effort to save administrative costs and taxes, followed the instructions in the trust instrument, treated beneficiaries impartially, charged excessive fees or committed fraud
• Questions regarding the trust itself, including whether the settlor had capacity to execute the trust, whether the document was properly signed or whether the trust was a product of undue influence
• Disputes among classes of beneficiaries: (1) Does a second spouse or second family take preference over the family from a first marriage? (2) Do children take preference to the exclusion of grandchildren? (3) Are children involved in a family business or farm treated differently from children who are not involved?

What Are The Trustee’s Responsibilities Regarding Trust Assets?

In Minnesota, a trustee has legal and ethical duties to act in the trust’s and its beneficiaries’ best interest. These responsibilities go far beyond simply managing the money or property held in the trust.

A trustee must follow the trust’s terms, act prudently and remain loyal to the beneficiaries. Some of the key duties of a trustee include:

• Duty of loyalty: The trustee must always act in the best interests of the beneficiaries, not their own.
• Duty to administer the trust: The trustee must manage the trust assets according to its terms and Minnesota law.
• Duty of impartiality: If multiple beneficiaries exist, the trustee must remain fair and avoid favoring one over the other.
• Duty to keep records: Trustees must keep clear and accurate financial records and regularly update beneficiaries.
• Duty to invest prudently: Trustees must make sound investment decisions to protect and grow the trust assets.

Failing to meet these responsibilities can result in legal consequences, including removal from the trustee role or personal liability.

Who Can Challenge A Minnesota Trust?

In Minnesota, only individuals or parties with legal standing, usually heirs, beneficiaries or those who would benefit under a previous version of the trust, can bring a challenge. A trust can be challenged on several grounds, including:

• Lack of capacity: Arguing that the person who created the trust was not mentally fit at the time.
• Undue influence: Claiming someone manipulated the trust creator to change the terms.
• Fraud or forgery: Alleging that documents were tampered with or signed dishonestly.
• Breach of fiduciary duty: Arguing that the trustee has improperly managed the trust.

Challenges must be based on strong legal grounds, not just personal disagreement with the trust’s terms. Anyone considering contesting a trust in Minnesota should consult a lawyer experienced in trust litigation to understand their options and rights.

Contact Us

To learn more about trust disputes, contact Mason & Helmers today. The firm’s attorneys serve clients in the Minneapolis-St. Paul area and beyond. Call 651-323-2548 to set up an appointment.