Trustees are expected to follow the terms of a trust while acting fairly and loyally toward the beneficiaries. However, not every trust relationship proceeds without dispute. In some cases, beneficiaries believe a trustee has not fulfilled their legal obligations or has acted in a way that harms their interests. These disagreements can lead to legal action, especially when communication breaks down or trust administration becomes inconsistent or unfair. As a Coquilam, BC beneficiary dispute lawyer, we often assist with situations where court involvement becomes necessary to resolve claims and preserve assets.
Mismanagement Of Trust Assets
One of the most common reasons beneficiaries sue trustees is the alleged mismanagement of trust assets. Trustees are expected to make prudent investment decisions and to protect the value of trust property. If a trustee takes unnecessary risks, makes poor financial choices, or fails to maintain records that show responsible management, beneficiaries may raise concerns. Disputes often arise when there is a sudden or unexplained loss in value, or when assets have not been used in accordance with the trust’s instructions.
Failure To Distribute Assets Fairly Or On Time
Trustees are obligated to follow the timeline and distribution instructions outlined in the trust document. When distributions are delayed without explanation or distributed unevenly among beneficiaries, trust beneficiaries may suspect favoritism or negligence. Beneficiaries may take legal action if they believe they are being unfairly deprived of their rightful share or if a trustee refuses to account for delays.
Conflict Of Interest Or Self-dealing
A trustee is required to act in the interests of all beneficiaries and must not engage in actions that serve their own benefit at others’ expense. When a trustee uses trust assets for personal gain, enters into transactions that benefit themselves or their close associates, or otherwise puts their interests above the trust’s purpose, this is referred to as self-dealing. These situations are not only unethical but can also lead to legal consequences if beneficiaries file claims of breach of fiduciary duty.
Lack Of Communication Or Transparency
Trustees have a duty to keep beneficiaries informed about the status of the trust, including providing regular updates, financial records, and answers to reasonable inquiries. If a trustee fails to provide information or refuses to share essential documents, beneficiaries may lose confidence in the trustee’s management. This lack of communication can lead to disputes, especially when beneficiaries suspect that important decisions are being made without their knowledge.
Allegations Of Undue Influence Or Improper Amendments
Sometimes disputes involve claims that the trust itself was altered under improper circumstances. Beneficiaries may challenge the validity of amendments if they believe the trustee played a role in pressuring or manipulating the settlor. This often comes up when changes to the trust document unexpectedly benefit the trustee or reduce another beneficiary’s share.
Committed To Clear Advice And Trusted Representation
We focus on providing clear guidance, practical solutions, and reliable representation in trust and estate matters. We offer litigation support for trustees who have been accused of wrongdoing and for beneficiaries who need to assert their legal rights. Our team also assists with preventative trust planning, helping clients set up trusts that reduce the likelihood of future disputes by offering trustee education and clear trust terms.
If you’re involved in a trust dispute or have concerns about trustee conduct, we’re here to help. Attorneys like those at HS Law Corporation, HS Law can attest to the importance of working with experienced counsel during trust conflicts. To speak with our legal professional, reach out to us today to schedule a consultation.
