People create trusts to protect their assets or structure the inheritance received by beneficiaries. Trusts become the legal owners of the assets used to fund them. The trustee administering the trust must manage those resources and distribute them according to the instructions integrated into the trust documents.
Occasionally, the beneficiaries expecting support from a trust have to deal with an uncooperative trustee. The trustee may refuse to make distributions from the trust even in circumstances that clearly qualify according to the existing trust documents. In such cases, beneficiaries may need to consider initiating trust litigation to access the resources intended for their benefit.
Trustees must follow trust instructions
A trustee is in a position of fiduciary duty. They have an obligation to act in the best interests of the trust and its beneficiaries. They typically need to make an effort to optimize the value of trust resources when maintaining, investing or liquidating those assets.
They also need to comply with trust documents regarding when and how they distribute trust resources. Sometimes, disagreements with beneficiaries or pre-existing relationships can inspire trustees to refuse requests for distributions.
In such scenarios, beneficiaries can potentially turn to the probate courts. The courts have the authority to compel a trustee to perform the responsibilities required of them according to trust documents, including making distributions to beneficiaries.
In fact, the courts can potentially even replace a trustee if they consistently refuse to fulfill their responsibilities. While people often feel anxious about taking actions that might negatively affect their relationship with the trustee, an individual who has already put their own wishes ahead of trust document instructions is likely to continue ignoring their responsibilities or abusing their authority in the future.
Pursuing trust litigation to compel a trustee to uphold their responsibility can help ensure that beneficiaries receive the support the trust store intended. Beneficiaries who document their circumstances can sometimes make use of the legal system to resolve frustrating trustee conduct.