Trust Administration & Disputes

A trust is a powerful estate planning tool, often used to avoid probate, maintain privacy, and provide a more efficient way to transfer assets to beneficiaries. While a trust can simplify the distribution of an estate, its administration requires careful attention to detail and a thorough understanding of the trust document. At Percy Law Group, PC, we provide comprehensive guidance to trustees and beneficiaries, ensuring that trusts are administered correctly and that any disputes are handled with skill and care, preserving the trust's purpose and protecting its assets.

Trust administration involves several key responsibilities for the trustee, who is a fiduciary with a legal and ethical obligation to act in the best interest of the trust and its beneficiaries. These responsibilities include:

• Following Trust Instructions: The trustee must strictly adhere to the terms and provisions of the trust document, which dictates how assets are to be managed and distributed. This is a critical duty, and any deviation can lead to serious legal consequences.
• Prudent Asset Management: The trustee is responsible for managing the trust's assets prudently and professionally. This includes making sound investment decisions, protecting assets from loss, and paying all necessary expenses and taxes.
• Maintaining Accurate Records: A trustee must keep meticulous records of all financial transactions, including income, expenses, and distributions. This is essential for providing a full accounting to the beneficiaries.
• Communicating with Beneficiaries: A trustee must keep beneficiaries reasonably informed about the trust's administration, including its finances and significant decisions.

Despite their intended simplicity, trusts can be a source of conflict. Disputes often arise when a trustee's actions are questioned, or when beneficiaries disagree over the interpretation of the trust's terms. Common trust disputes include:

• Breach of Fiduciary Duty: This occurs when a trustee fails to fulfill their duties, such as mismanaging funds, failing to provide a proper accounting, or making self-serving decisions. Such actions can lead to a lawsuit to recover losses or have the trustee removed.
• Trust Interpretation: The language of the trust can sometimes be ambiguous, leading to disagreements among beneficiaries about who is entitled to what, or how assets should be managed.
• Trustee Removal: In cases of wrongdoing, incompetence, or a conflict of interest, beneficiaries may seek to have a trustee removed by the court.
• Will and Trust Coordination: Sometimes, a will and a trust conflict, which can create confusion and litigation about how the estate should be settled.

Our firm is equipped to assist with both trust administration and litigation. We can provide guidance to trustees to ensure they fulfill their duties correctly, or we can represent beneficiaries who believe a trustee has acted improperly. Our deep understanding of Massachusetts trust law allows us to navigate these complex issues and protect your interests, whether through negotiation, mediation, or litigation.