Trust litigation

Westchester County Trust Litigation Attorneys

Located in the southeastern part of New York and with 1,004,456 people as of 2020, Westchester County has the seventh largest population in the state. The county’s annual per capita income as of 2011 was $67,813 in 2011. As of 2021, the median household income was $105,387, and the county ranks second in the state for median income per person. It has the highest property taxes of any United States county. Many people in the county create trusts to handle wealth or to take advantage of various benefits that trusts provide. However, there are a number of legal problems that can arise in connection with a trust after the maker of the trust passes away or becomes incapacitated. Whether you need to pursue or defend against trust litigation, you should seek representation. Call seasoned Westchester County trust litigation attorney Jules Haas to find out your legal options.

When is Trust Litigation Appropriate?

Trusts are written documents that give a person or institution the power to hold and manage property for the benefit of others. Trust property may include not only funds placed in a bank account in the name of the trust, but also stocks, bonds, life insurance policies, vehicles, real property, artwork, and jewelry.  

Generally, a trust allows the time and expense of probate to be avoided after the settlor, the person who creates the trust, passes away. The person who manages the property in the trust is a trustee; in some cases, the trustee is also the settlor. The people who receive the funds or assets in the trust are known as beneficiaries. The written trust instrument will describe how the named trustee is to manage and distribute trust assets and the longevity of the trust.

A trust instrument is only valid when certain legal requirements are met. For instance, the settlor must be of sound mind and specify specific beneficiaries of the trust. When legal requirements related to the trust are not met, there are various court proceedings that may be appropriate to institute. For instance, it may be appropriate to challenge the validity of the trust in Surrogate’s Court or the Supreme Court, if it’s believed that a settlor lacked capacity, the trust was not duly executed, or undue influence was exerted against the settlor.

Trustee’s Breach of Fiduciary Duty

One common form of trust litigation involves breach of fiduciary duty. A trustee owes a fiduciary duty to the beneficiaries of a trust. This means the trustee is required to act with the highest degree of devotion, loyalty and care when carrying out actions related to the trust and its beneficiaries. Trustees are not allowed to harm the beneficiaries’ interests or develop interests that would conflict with the beneficiaries’ interests. They are not permitted to be involved in double dealing. It can be difficult for a trustee who has not previously had a confidential relationship with a beneficiary to know what actions are required by a fiduciary duty. Therefore, to avoid litigation or other disputes, it’s crucial for a trustee to seek legal counsel to ensure that he or she is meeting all requirements.

It’s important to know that trustees are required to bring to bear all their professional skills and knowledge in order to fulfill their fiduciary duties to beneficiaries. If, for example, a trustee is a securities attorney, he must bring his knowledge of securities law to any question that requires it while managing and investing trust assets. In addition, trustees are expected to keep beneficiaries apprised of actions they take with regard to the trust and its assets. A beneficiary might, for instance, bring proceedings against a trustee who gambles with inappropriately high-risk investments of trust funds.

Beneficiary’s Right to an Accounting in Westchester County

A beneficiary has rights under the New York Estates, Powers and Trusts Law (EPTL) and the Surrogate’s Court Procedure Act (SCPA). If she believes there has been mismanagement of the trust, she may request  a trust accounting. This accounting should spell out what actions the trustee has taken, as well as the amount of funds that remain in the trust. Beneficiary rights are governed by New York Estates, Powers and Trusts Law (EPTL) and the Surrogate’s Court Procedure Act (SCPA).

Consult a Westchester County Trust Litigation Attorney

Seasoned Westchester County trust litigation attorney Jules Haas has represented heirs, interested parties, trustees, beneficiaries, and estate administrators for more than 40 years. He is committed to providing personalized, attentive service to clients not only in trust litigation matters, but also in estate administration, probate, guardianship proceedings, and Surrogate’s court cases. Contact him through our online form or call him at (212) 355-2575 for a free consultation.