Forming a trust can be one of the most effective ways to transfer property to another person or organization. Not only does this process allow for tax-free movements of assets, but it can also help avoid the complications that can come with probate.
Unfortunately, the efficacy of trusts depends upon the ability of trustees to perform their duties under the law. In fact, state law states that trustees have a fiduciary duty to act in the best interests of beneficiaries. A failure to act property may give rise to litigation that demands an appropriate remedy. A Denver trust litigation lawyer could help you if you believe that a trustee has failed in their duty to properly manage this agreement. An attorney could take the lead in these disputes by evaluating the actions of trustees and protecting your rights in court.
The trustee plays a vital role in the administration of any trust. The trustee takes temporary control over the assets in the trust, keeps those assets in good standing, and then distributes them to the named beneficiaries at the appointed time.
In the general sense, trustees have a duty under the law to perform their role in good faith. According to Colorado Revised Statute § 15-5-801, this includes acting in a way that serves the purpose of the trust as well as the interests of the beneficiaries. More specifically, CO Rev. Stat. § 15-5-804 says that trustees must make prudent decisions concerning the administration of the assets in the trust and that they must take these steps with reasonable skill, care, and caution. Whether a trustee has fulfilled this obligation is a common source of trust disputes and litigation. A Denver attorney could help someone pursue trust litigation if they believe that the trustee failed to meet their fiduciary duty.
When a trustee violated their fiduciary duty, the law gives affected beneficiaries the right to demand compensation in trust disputes. Proving that malfeasance has occurred is the burden of the affected beneficiaries. A lawyer in Denver could help someone prepare for trust litigation by investigating apparent impropriety. This includes examining the trustee’s reports, evaluating whether they have properly maintained the assets while they sat in trust, and determining whether the distribution of property occurred in accordance with the terms of the agreement.
If it appears that a violation of the fiduciary duty has occurred, an attorney could help to seek out an appropriate remedy. In many situations, this could include a private, out-of-court settlement where a trustee agrees to pay back the lost value in the trust. However, it may also be necessary to take the more aggressive step of filing complaints in the probate court and demanding full compensation in litigation. Contacting a trust dispute lawyer could be the first step toward an appropriate outcome.
Disputes can often arise during the administration of a trust. The law says that trustees have a duty to act prudently to administer a trust and to only act in the best interests of beneficiaries. They may violate this duty by failing to follow the terms of the trust or by improperly caring for the property under their control. Either of these actions makes a trustee liable for any resulting damage. A Denver trust litigation lawyer could help you to collect compensation for these damages. For more information about how our team could help you in this endeavor, call today.
Reynolds Gillette LLC