Long Island Trust Litigation

Long Island Lawyer for Trust Litigation

Sometimes disputes arise over trust terms or over whether a trustee is acting appropriately with regard to assets held in trust for beneficiaries. Whether you are a grantor (a person who makes a trust), a trustee, or a beneficiary involved in a trust dispute, it’s important to seek knowledgeable legal counsel. You should give the seasoned Long Island trust litigation attorney Jules Haas a call. Mr. Haas has 40 years of insights gleaned from representing various parties in trust litigation experience that he can put to work for you. He represents trustees, beneficiaries, and other interested parties.

What Is a Trust?

A trust is a legal instrument that effectively separates legal ownership of the property that has been placed in it from the right to control the property. A number of formalities must be followed to execute a valid trust instrument. A grantor must be of sound mind and specify clear beneficiaries of the trust. When conflicts develop around a trust, there are a range of judicial proceedings that could be used to seek remedies. Those who are trustees, beneficiaries, or other interested parties may institute proceedings in court, depending on the circumstances.

The most common form of trust litigation is likely the trust contest. These proceedings are instituted when an interested party objects to the validity of the trust and files a contest in the Supreme Court or Surrogate’s Court. The trust contest needs to be filed no more than six years after a grantor’s death. It differs in certain ways from a will contest, but the grounds to challenge a trust are similar to those of a will contest and include undue influence, fraud, forgery, lack of capacity, duress, and lack of appropriate execution. It might be appropriate to challenge a trust after someone’s death, for instance, if it appears that the trust was made only after significant pressure or duress was placed upon the grantor or where the grantor was lied to and manipulated such that beneficiaries were removed from the trust.

Breach of Fiduciary Duty by a Long Island Trustee

Grantors can create a trust during their own lifetime or institute a trust following their death by means of their will. There are different kind of trusts, such as living trusts and testamentary trusts, but some basic requirements apply across the board, such as the roles played by different parties in connection with the trust instrument. As part of making a trust, the grantor specifies beneficiaries. Trustees are those who oversee a trust for beneficiaries’ benefit and in their best interests.

As part of their oversight, trustees are required to abide by a fiduciary duty to beneficiaries; a fiduciary duty is the highest standard of care and loyalty. Trustees are not allowed to engage in double dealing or develop interests that conflict with those of the beneficiaries. This type of conduct would be a breach of fiduciary duty. And among their practical tasks, a trustee must invest trust assets with prudence, managing those assets and distributing income or principal to beneficiaries as dictated by trust terms. The expectation is that the trustee carries out the grantor’s preferences and wishes; however, to carry out those wishes, trustees are also expected to stay on top of any legal changes that might impact the trust. For that reason, it is reasonable and prudent for a trustee to retain a lawyer who can help ensure there are no violations or breaches of duty in the course of managing the trust’s operations.

Judicial Proceedings

Legal proceedings may be brought against a trustee under the New York Estates, Powers and Trusts Law (EPTL) and the Surrogate’s Court Procedure Act (SCPA), if the trustee is believed to have mishandled trust property or their execution of trust terms. For instance, if a trustee receives information intended to benefit the beneficiaries and instead uses that information to enrich himself, there may be grounds for the beneficiaries to sue and have a trustee removed. Similarly, if a trustee is a hedge fund manager who has special knowledge of accounting but doesn’t use this financial know-how to properly maintain accounts for the trust, this may be grounds for a lawsuit brought by the beneficiaries.

Beneficiaries are entitled to trust accountings that indicate what actions were taken by the trustee and other parties. These accountings should also specify the nature of the funds that remain in the trust. Trustees are expected to keep beneficiaries apprised of actions they take to manage the trust. If there is a lack of transparency around a trustee’s actions related to the trust, such as where a trustee doesn’t respond to a demand letter for an accounting, beneficiaries may be able to compel a trust accounting in Suffolk County, Nassau County, King’s County, or Queen’s County Surrogate’s Court. The accounting is governed by the New York Estates, Powers and Trusts Law (EPTL) and the Surrogate’s Court Procedure Act.

Consult a Long Island Trust Litigation Lawyer

Seasoned Long Island litigation attorney Jules Haas provides attentive, personalized legal representation to heirs, interested parties, trustees, beneficiaries, and estate administrators. He also handles estate administration, probate, guardianship proceedings, and Surrogate’s court cases. Contact him through our online form or call (212) 355-2575 for a free consultation.