Why Trust Litigation Happens, and How Balanced Representation Helps

Disputes surrounding a loved one’s trust can stir deep emotions and costly legal battles. In Florida, trust litigation often arises when trustees mismanage assets, fail to communicate, or when beneficiaries disagree about how the trust should be handled. While these conflicts sometimes reflect family tension, they can also signal genuine misunderstandings or breaches of fiduciary duty.

 

Florida’s Trust Code (Chapter 736) holds trustees to strict fiduciary standards. When those duties are violated—intentionally or not—trustees can face personal liability, and beneficiaries have the right to challenge improper conduct. 

 

Breaches of Fiduciary Duty by Trustees

The most frequent cause of trust disputes involves breaches of fiduciary duty. A trustee is legally bound to manage trust assets exclusively for the benefit of the beneficiaries. When that duty is breached, litigation often follows.

 

Common breaches include:

• Mismanagement: Poor investments, neglected assets, or failure to diversify can deplete trust funds. Misjudging market risk or ignoring professional advice can leave a trustee personally liable for losses under Fla. Stat. § 736.1001.

• Commingling: Mixing trust funds with personal accounts or business income blurs financial lines and jeopardizes beneficiary assets.

• Self-dealing: When trustees profit personally—by selling property to themselves at a discount or favoring relatives—they violate the duty of undivided loyalty.

These actions undermine trust integrity and frequently lead to surcharge actions or trustee removal.

 

Failure to Provide Accountings

Transparency is fundamental to proper trust administration. Under Fla. Stat. § 736.0813, trustees of irrevocable trusts must provide annual accountings to qualified beneficiaries. These detailed reports show income, expenses, and distributions.

 

When a trustee refuses or delays providing accountings, beneficiaries may suspect hidden losses, unpaid taxes, or mismanagement. Courts can compel disclosure, remove the trustee, or impose financial penalties. Beneficiaries have the right to review bank statements, receipts, and even tax returns if needed to confirm funds were handled appropriately.

 

Lack of Clarity or Invalid Trust Documents

Even when trustees act responsibly, litigation can arise from issues embedded in the trust itself. Poorly written or improperly executed documents—such as missing signatures or witnesses—can invite contest.

 

Beneficiaries may challenge a trust for undue influence, lack of capacity, or fraud in its creation. These claims must typically be brought within six months to four years of receiving notice, depending on the circumstances. Courts interpret unclear provisions under the Florida Trust Code, often using expert witnesses to determine the settlor’s original intent. A clear, valid trust document is one of the best safeguards against future disputes.

 

Disputes Among Beneficiaries

Sometimes, it isn’t trustee misconduct but family dynamics that fuel litigation. When beneficiaries disagree over distributions, favoritism, or the perceived value of assets, emotions can escalate quickly. Trustees caught in the middle must remain impartial—a duty required by Florida law—and treat all beneficiaries fairly.

 

Disputes also arise when trustees delay payouts, make unilateral changes, or fail to explain financial decisions. In such cases, skilled legal guidance helps de‑escalate conflict through mediation or court‑supervised resolution.

 

Other Common Triggers

Apart from breaches and disputes, other missteps can push a trust toward litigation:

• Failure to make timely distributions as required by the trust.

• Ignoring administrative duties, such as filing tax returns or maintaining insurance.

• Poor communication that fuels mistrust among family members and beneficiaries.

While these issues may start small, they can quickly become legal crises without proactive management and sound legal advice.

 

Why Balanced Representation Matters

Trust litigation rarely paints one side as entirely right or wrong. That’s why balanced representation is so important. Robyn Lesser Law represents both trustees and beneficiaries, offering a well‑rounded perspective that promotes fairness and efficiency.

 

For trustees, experienced counsel provides defense against unfounded claims and helps navigate complex legal duties. For beneficiaries, representation ensures transparency, accountability, and the recovery of mismanaged funds when appropriate. Early legal intervention—ideally before formal litigation—often leads to negotiated resolutions that preserve both assets and relationships. In most cases, trust disputes stem from preventable issues: unclear terms, poor communication, or overlooked fiduciary duties. Fortunately, Florida’s trust laws offer strong remedies to correct misconduct and safeguard beneficiary rights.

 

Whether you’re a trustee facing accusations or a beneficiary seeking answers, experienced legal counsel can make all the difference. With guidance from Robyn Lesser Law, both sides can work toward solutions that protect wealth, honor intent, and reduce conflict.