What happens when there are questions about the creation of a trust or the actions of the trustee who is supposed to manage its assets? Some of these issues might be misunderstandings or miscommunications, but others can rise to litigation. Resolving these disputes can help beneficiaries get back on track with what they need when it comes to moving on with their life and getting the distributions intended for them. The rules related to creating and managing a trust in Colorado are found in Colo. Rev. St.§ 15-5-101.
Managing a Trust in Colorado
As a beneficiary to an estate or as a trustee currently serving in this all important role administering the terms of a trust, you need to be clear about your rights and responsibilities. In these circumstances, you’ll want to consult with a Colorado trust litigation lawyer as soon as possible after you believe that a legal dispute is derailing the intended actions of a trust creator.
Account responsibility for the management of a trust falls to the trustee who has held to a high level of responsibility known as fiduciary duty. When a trust beneficiary finds that a trustee is non cooperative or is engaged in illegal behavior that is compromising the value of the assets inside the trust, this beneficiary can open a trust litigation case.
These are serious circumstances that require the trustee to take prompt action by hiring a Colorado trust litigation lawyer. Many of the most common types of trust disputes have to do with the behavior of a trustee who is accused of breaching their fiduciary duty, self-dealing or improperly administering the terms of a trust.
A trustee has a vested interest in protecting their reputation and ensuring that the trust is appropriately administered. A beneficiary has a right to know about actions taken relating the trust that could affect their distributions.
In other circumstances, however, these disputes might get escalated to the level of litigation˙. In any of these circumstances, retaining legal counsel sooner rather than later can decrease the possibility of mistakes or costly errors that could cause this issue to become more contentious or more expensive to manage.
A trustee who has recently been appointed in this role and is concerned about unreasonable beneficiaries might choose to hire a trust litigation lawyer in Colorado early on to protect their interests, whereas a beneficiary might wait until a particular circumstance in question has made them want to get additional support for their claims. Another common reason for a trust dispute has to do with trust accountings.
It is the responsibility of the trustee to keep record of all transactions they have made related to the trust. If a beneficiary can show that the trustee went against the terms of the trust or took money for themselves, these could both lead to the trustee getting removed from this important role.
Since this can escalate interactions between trustees and trust beneficiaries, it is recommended that these actions only be taken by someone who is clear about their rights and responsibilities in the case and someone who understands the stakes at play. If you find yourself in this circumstance, you’ll want to consult with a trusted trust litigation attorney serving Colorado as soon as possible.