The law has its complications, especially when it comes to common trust disputes. Which is why when the law (or an individual) is causing you trouble, there’s a better way to handle common trust disputes.
That best way forward is to contact a lawyer and have them work within the bounds of the law for you. In the case of common trust disputes, the process is easier and more likely to succeed.
What is a Common Trust Dispute?
In short, a trust is usually for estates where a person’s assets are considerable. It is, in essence, a better way to:
- minimise tax and;
- protect the estate until it’s time for the assets within the trust to go to its trustees.
A testator can create these trusts before death, or as per their request in a last will and testament.
As you can imagine, the goal of a trust is to minimise complications. But even the best plans do have faults and trust disputes do happen.
For example:
- if the trust is incorrectly put together;
- when there are disputes between the trustees and beneficiaries, or;
- if there is evidence of fraud.
When is a Trust Fraudulent?
A trust can be fraudulent for a variety of reasons. If the trustee is negligent or commits fraud, for example. Or if a trustee ignores a breach of trust committed by a fellow trustee. Negligence almost always will open up a case for fraud against the trust and/or its trustees.
Moreover, it’s generally easy to prove. If a trustee in any way neglects their duty as the trust outlines, they are inherently negligent.
Another example is if the person who creates it lacks the mental capacity or faces coercion into making it. This is similar to any fraud for the last will and testament.
If the settlor, or the person who set up the trust, was given negligent legal or tax advice this could also make the trust fraudulent. This same applies if the trust documents themselves don’t line up with the wishes of the deceased in their will.
Trusts can also be used to disguise ownership of estates. This is also a fraudulent activity, one of several common trust disputes scenarios you might encounter.
In short, either fraud can occur to exploit the trust, or fraud can occur because the trust is a result of fraudulent purposes. Amongst common trust disputes, a dispute in trusts occurs when there is either fraud or a suspicion of fraud.
What to Do if You Want to Dispute a Trust?
Instigating family trust disputes can be challenging. There is a lot of documentation and people within a trust. Moreover, if you suspect fraud it can also be difficult to prove. Also, even if you wish to dispute a trust, you don’t want to burn bridges while you are at it.
Bringing family into litigation can hurt feelings, and ruin relationships. That is why when you want to contest a trust you need trust dispute solicitors who can handle the process delicately. You will also want to choose professionals who are well versed in the law and changes that have been made over the years.